The national telecom regulator has decided to scrap the controversial draft auction design for the fourth-generation (4G) spectrum, opening the door to other methods of spectrum allocation.
The decision complies with the junta's order demanding the National and Broadcasting and Telecommunications Commission (NBTC) suspend the planned 4G spectrum auctions for one year.
The military wants the regulator to amend several impractical sections of the Frequency Allocation Act (FAA) before 4G spectrum auctions can take place.
"Beauty contests could be one of several options in allocating frequencies to qualified bidders," said NBTC vice-chairman Col Settapong Malisuwan.
A beauty contest is where applicants are judged on a predetermined set of criteria such as speed of deployment, spectrum efficiency, stimulation of competition and benefit to the country.
"We might have mixed types of auctions, depending on the next government's decision," Col Settapong said.
The NBTC is also on the verge of changing some impractical sections of the FAA to reduce legal loopholes. Col Settapong said Section 45 of the FAA, which limits the regulator to allocating frequencies by auction only, would surely be changed.
He said the NBTC believed Section 45 posed a serious threat to the country's telecommunications and broadcasting development, as unlicensed regimes had been gaining momentum internationally.
Additionally, allocations of some frequencies such as those for national security should not be limited to auctions. Frequency auctions for taxi radio and satellite sectors also do not meet international standards.
Changes will be proposed by early next month and submitted to the junta for consideration. FAA amendments must pass through the legislative process.
"We're unsure whether the NBTC will be the regulatory body holding the 4G spectrum auctions," Col Settapong said.
He said he would accept the junta's decision even if the amended FAA required a new telecom regulator to replace the NBTC’s telecom committee in allocating spectra.
He agreed most sections of the FAA needed to be remade including the internal management structure of the NBTC, as the number of commissioners should be halved from 11 as well as the details of recruitment procedures for the commissioners.
The NBTC already approved the details of two 4G spectrum auctions scheduled for next month and November. Information memorandum (IM) details for the auction of the 1800-megahertz spectrum already passed a public hearing in April and were approved by the NBTC's telecom committee in May. The IM was pending endorsement by the NBTC's board.
However, the IM for the auction of the 900-MHz spectrum is still undergoing public hearings.
Under the 1800-MHz IM, bidders will compete for 25 MHz of bandwidth previously used by True Move and Digital Phone Co. The reserve price for 12.5 MHz of bandwidth was 11.6 billion baht per licence.