Total Access Communication Plc (DTAC) is floating an idea to reshuffle and return its unused spectra to the national telecom regulator for fourth-generation (4G) auctions, expecting nothing in return.
The move by the country's second-largest mobile operator is aimed at breaking the current deadlock in telecommunications frequency limits and enhancing bandwidth frequencies for 4G mobiles, said Sigve Brekke, head of Telenor Asia, DTAC's major shareholder.
DTAC has come up with five proposals.
First, the company is proposing to return the unused 25-megahertz band of the upper end of the 1800-MHz spectrum to the National Broadcasting and Telecommunications Commission (NBTC) for 4G auctions, with no requirement of any compensation despite DTAC's concession with CAT Telecom not expiring until 2018.
Second, DTAC is willing to reshuffle its existing 25-megahertz band of the lower end of the 1800-MHz spectrum with the 12.5-MHz band of the 1800-MHz frequency now used by True Move.
"The reshuffle will allow a contiguous spectrum that will eliminate inefficiency and waste inherent in block sizes," Mr Brekke said.
"The move will combine True Move's 12.5 MHz with the 12.5 MHz of Digital Phone Co into a single portion with a total of 25 MHz bandwidth instead of splitting into 12.5 MHz each," he said, adding that this would maximise the use of frequency.
"A block size of 2.5 MHz causes immense wastage of spectrum," he stressed.
DTAC would shoulder all costs resulting from the spectrum reshuffle.
Third, DTAC wants the regulator to reorganise all existing bands of telecom frequencies and bring them up for auction in blocks of five or 10 MHz for each licence in order to eliminate waste of spectrum.
Fourth, DTAC proposes the NBTC bring its existing 10 MHz of bandwidth of the 850-MHz spectrum to the auction together with the planned 1800- and 900-MHz spectra.
The winning bidders would be allowed to provide services after the expiry of DTAC's concession.
DTAC is using the frequency to provide 3G mobile service under a concession contract with CAT Telecom that is due to expire in 2018.
Finally, Mr Brekke said DTAC had proposed a trade-off with the NBTC by letting the company upgrade 15 MHz bandwidth of the existing 1800-MHz spectrum for providing 4G service. The remaining 10 MHz bandwidth on the frequency would still be reserved for 2G mobile service.
In exchange for that, the regulator could bring the frequency into the planned auctions this year. The winning bidders would be allowed to provide 4G service on the frequency after the expiry concession.
DTAC has 50 MHz of the 1800-MHz frequency for voice services, plus 10 MHz of the analogue 850-MHz frequency bandwidth for data service.
"If the NBTC accepts our proposals, the country will have a total 105 MHz of bandwidth on both the 900- and 1800-Mhz spectra, which are essential for mobile operators to deliver highly efficient, cost-saving 4G wireless broadband service," Mr Brekke said.
"All these proposals are not difficult. The regulator just needs to make a decision in order to move the industry ahead, resolve the telecommunications industry deadlock and maximise the country's benefit."
Asked if providing operators ample bandwidth of frequencies would discourage competition in bidding, Mr Brekke said the NBTC could just establish a high reserve price for 4G licences to prevent any possible collusion. He noted that the 700-, 2300- and 2600-MHz spectra were not internationally recognised standards and very few handsets were based on them.
Previously, DTAC proposed returning the unused 25 MHz of the mobile spectrum to the NBTC for auction. But CAT rejected the proposal, saying the state telecom wanted to keep it for its own service.
DTAC then proposed another trade-off with the NBTC in its second bid by letting DTAC provide 4G service on its unused portion of the 1800-MHz spectrum under a 2G concession with CAT Telecom, with DTAC returning the unused portion to the regulator. The NBTC rejected that proposal.
