Critics slam 3G 'giveaway'

News > Local News

Only three out of nine slots attract rival bids

Published: 17 Oct 2012 at 00.00
Newspaper section: News

Thailand's long-overdue sale of third-generation (3G) mobile spectrum bandwidth has attracted a storm of criticism.

Top executives of Thailand’s three major mobile phone operators, from left, Dtac CEO Jon Eddy Abdullah; Advanced Info Service (AIS) vice chairman Somprasong Boonyachai; and True CEO Suphachai Chearavanont, pose for a photo prior to the 3G spectrum auction at the National Broadcasting and Telecommunications Commission in Bangkok Tuesday. The auction of 3G licences began with the three mobile phone operators vying for slots from 45MHz of bandwidth on the 2.1GHz band. APICHIT JINAKUL

Academics and politicians alike slammed telecom regulators Tuesday for essentially gifting new licences to the private sector at taxpayer expense.

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whatajoke
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Discussion 15 : 17 Oct 2012 at 08.0415
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D4 agreed! You get top dollar for an auction or sale by selling at prime time, this auction is about 5 years overdue, they've let TOT steal a march in the 3G industry, they screwed up the whole process so that it's still subject to legal challenge, 3G itself now has a very limited shelf life, and furthermore, the bidders (as pre-existing telecoms companies) can rightfully cite four years of opportunity cost due to delays, so that's the ICT Ministry's incompetence, this govt and the last.
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Eric
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Discussion 14 : 17 Oct 2012 at 08.0314
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As a member of the business community, I have held my breathe for just toooo long for the realization of 3G. Whew! Finally here albeit still behind the technlogy curve. The euphoria easily outweigh the complaints. Save the complaints for the 4 G which will arrive real soon now that we have the 3 G technology.
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oldairman
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Discussion 13 : 17 Oct 2012 at 07.2113
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Quote
Green Politics group leader Suriyasai Katasila, who last week sought a court injunction against the auction, blasted the results.

Only three of the nine slots auctioned attracted competition, with six slots, representing 5MHz each, selling at the minimum reserve price of 4.5 billion baht.

"Six licences were given out free to the private sector, correct? And three licences saw bids only to create the illusion of competition," he said.

I suspect that he failed maths at school.

So 6 licences were given out "free" for 27 billion baht. How is 27 billion baht free for old technology which has been superseded in half the world already? And that half of the world is already working on the next generation.
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carlg1
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Discussion 12 : 17 Oct 2012 at 06.5612
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Most of the people who are complaining currently would have complained anyway regardless of the final bid price. Had all three operators paid Bt60bn for the three licenses, someone would have come out and say that "it's just one year's worth of concession payment - they should have paid 15 years X Bt40bn per year = 600bn"!

We need to keep in mind that the opinion of these people do not reflect the opinions of the majority of the Thais, who are fed up with the whole 3G drama which has been around for nearly a decade and is a major source of national embarassment. The average phone user couldn't careless if the NBTC raised Bt40bn or Bt200bn at the auction. Most Thais - with the exception of perhaps a deluded few - knows that most of that auction money would probably be squandered on some useless / wasteful projects and siphoned off by the usual corruption process. Despite all the innane comments we're hearing in the news by various 'experts', the silent majority have no illusion about what's happening to their tax money.

Many of the activist groups who are taking legal actions against the NBTC are closely linked to the labor unions of the telecom state enterprises who stand to lose from these spectrum auctions. Had this auction been held under the Democrat government, the TOT and CAT would have come out and sued the NBTC directly. As it stands, both state enterprises are under gag order from the Puea Thai regime not to interfere with the auction. As a result, we get to see all these complaints from the groups who are in essence acting as proxy for the state enterprises employee. Others who may not be linked to the Labor unions, are simply doing it to grab the headlines.

In hindsight, the only thing that the NBTC has failed to do correctly was to make the rules more lenient towards foreign operators. The controversial Foreign dominance rules - sponsored by the you-know-who local operator - killed off any chance that we might see a genuine 4th operator in Thailand - and subsequently genuine price competition in the mobile phone service space for the next 15 years. If anything, the consumer rights group should be all over the NBTC about this. Sadly, these same people are the ones who are inciting anti-foreign sentiments and probably support foreign dominance rules in the first place. It must be such a confusing time for these so called activists...
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lovethai
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Discussion 11 : 17 Oct 2012 at 06.4011
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How truly small-minded + pathetic these critics are ... do they not realise how much face Thailand has lost over this whole issue?

Yes, it's been reported even here in NZ ... it and makes Thailand look like a backward 3rd world country ...

3G? Most of the rest of the world has had it for years and whilst Thailand is starting to introduce it now [that's if these self-important naysayers don't hold it up further by their negative legal petitions] other countries are already getting ready to upgrade to 4G !!!

Poor Thailand ... what a great pity there are so many doom-merchants who are able to grab media attention to themselves.
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khunbj
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Discussion 10 : 17 Oct 2012 at 06.3710
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Well..at least there is progress...that they are able to get money for this old technology is a bit of an accomplishment in itself.
D8 : renaisance as usual you are assuming and inventing problems where none are, have you ever tried to rely on facts instead of hearsay or would it complicate life too much ?
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Renaissance
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Discussion 9 : 17 Oct 2012 at 06.059
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One should bear in mind that in Thailand the results of an auction like this are decided before the auction begins. Usually what you see happen is like a rehearsed play. The sale prices are most likely the result of a pre-auction meeting of all the participants with the usual encouragement for the people organizing the auction.
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hillfarang
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Discussion 8 : 17 Oct 2012 at 05.428
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"Dr Somkiat from the TDRI said the NBTC needs to adjust the structure of the auction, and suggested scrapping the current 49% foreign shareholding limit to encourage foreign operators to enter the telecom sector."

I agree!

Competition across the board is the key to lower (consumer) prices & better service.

4 G anyone?!?
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wangsuda
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Discussion 7 : 17 Oct 2012 at 05.377
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Too little. Too late. And nothing but complaints from those who didn't get enough of the pie. Truly pathetic.
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lookmoo
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Discussion 6 : 17 Oct 2012 at 05.306
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All costs will eventually lands on the consumers.
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