Clarity needed on 3G auction

EDITORIAL

Published: 18 Oct 2012 at 00.00
Newspaper section: News

The ever popular ancient idiom of "slow but sure" is definitely not applicable to the way Thailand has been handling the third-generation (3G) high-speed wireless service because it is moving at a snail's pace and, worse yet, there is nothing certain about when the service will be made available.

The long-overdue auction of the 3G 2.1 gigahertz spectrum was held by the National Broadcasting and Telecommunications Commission (NBTC) on Tuesday with only three successful bidders which passed the pre-qualification tests taking part in the auction.

As anticipated, the three _ Advanced Wireless Network, a subsidiary of Advanced Info Service, DTAC Network, a unit of Total Access Communications, and Real Future, of True Corp _ won the bid for three spectrum slots each for a combined offer of 41.625 billion baht for a period of 15 years.

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Renaissance
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Discussion 7 : 18 Oct 2012 at 19.107
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Quite a few huge deals are being made. Could they be the reason why the government has not signed the international anti-laundering agreement yet? Do a few billion Baht have to be sent abroad first by any chance?
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tony_n
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Discussion 6 : 18 Oct 2012 at 14.416
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A lot of information lacking to make sense of all this auction news - can anyone help?

1) Is this spectrum only compatible with 3G technology or can it be used for 4G? Do the terms of the licences allow 4G services to be offered when the time comes? If so, the issue of 3G being outdated is not relevant. But if not, it's very relevant.

2) I don't understand how the auction generated even one baht above the reserve price. Nine identical licences, three bidders allowed to bid for a maximum of three licences each - ie enough to go around for everyone, and zero scarcity value. So why pay more than the minimum. I guess it's to do with the auction design, but no one has explained this in any of the articles I've read. Ideas anyone?
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bula
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Discussion 5 : 18 Oct 2012 at 11.405
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Market competitions will make subscription fees competitive. Pay what you can afford.
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oldairman
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Discussion 4 : 18 Oct 2012 at 07.464
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Why would the companies pay too much over the odds for a licence? As for colussion the prices were published before the bids so the companied didn't need to talk to each other.
If they had paid more for their licences it would be paid for by the customers anyway.
They people who are protrstingare complaining about a loss of 20bN baht.
If Thailand had 3G even 2 years ago the state would have received much more than that in revenue already.
It is a "paper" loss and would only be wasted by the current spendthrift government anyway.
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whatajoke
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Discussion 3 : 18 Oct 2012 at 07.203
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It's a simple question of economics. a) if 3G is half expired already why pay the earth for it, better to wait for 4G. b) if there are 7 licences available and only 3 serious contenders of course you are only going to bid just above the reserve price, it's not collusion it's common sense. If you now decide to retro-actively change the rules and effect a cancellation you must financially reimburse those companies for their bid efforts (all the paperwork and prep), and owe the public a big explanation.
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wyle
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Discussion 2 : 18 Oct 2012 at 07.182
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What a vanilla editorial. All show no substance. There were many provisions that the NBTC could have made part of the process that would have made it better for the consumer. They choose not to and the editorial board choose not to write about it.
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Aussie John
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Discussion 1 : 18 Oct 2012 at 03.281
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Sounds like an invisible hand stands to make a huge windfall..but who??
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Clarity needed on 3G auction | Bangkok Post: opinion