NBTC mulls lowering 4G frequency slots in auction

NBTC mulls lowering 4G frequency slots in auction

The National Broadcasting and Telecommunications Commission (NBTC) is floating the idea of reducing the number of frequency slots for fourth-generation (4G) licences to be auctioned in a bid to boost competitive bidding.

The regulator is considering auctioning only 20 of the 25 megahertz on the 1800-MHz spectrum of bandwidth, dividing the spectrum into two slots, each containing 10 MHz.

The auction is scheduled to take place in August.

The remaining five MHz of bandwidth would be combined with the other 50 MHz on the 1800-MHz spectrum now being used by Total Access Communication (DTAC) for another auction scheduled for September 2015.

And another auction for 17.5 MHz of bandwidth on the 900-MHz spectrum, being used by Advanced Info Service, is slated for this November. AIS' concession is due to expire in 2015, while DTAC's concession ends in 2018.

The concessions of True Move and Digital Phone Co, a unit of AIS, expired in September 2013.

Previously the NBTC planned to pack the 25 MHz with the 17.5 MHz in a simultaneous auction called package bidding — a common practice internationally — that allows bidders to make a single bid for a group of frequencies or licences. The 1800-MHz and 900-MHz frequencies could be further upgraded to 4G.

The NBTC's telecom committee expects to settle a final draft for the 4G auction at this month's meeting, said NBTC member Prawit Leesathapornwongsa.

The three major mobile operators — AIS, DTAC and True Move — agreed with a separate frequencies auction, saying it will allow bidders to make best use of spectrum.

Equipment to control spectrum management requires five MHz of spectrum, said Suphachai Chearavanont, the head of True Corp.

Sigve Brekke, the head of Telenor Asia, the major shareholder of DTAC, said obtaining only 10 MHz of the 1800-MHz spectrum would not be enough for operators to provide 4G services.

He said auctioning two frequencies separately might increase bid prices among the three operators fighting for a 4G licence. But new players would not join in as the market is already saturated.

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