The telecom regulator plans to reduce bank guarantee requirements for the next spectrum auction to ease financial burdens and encourage mobile operators to expedite implementation of 5G infrastructure.
The new rules will apply to the 2600MHz licences, which group the 26GHz and 28GHz ranges into a multi-band auction.
Takorn Tantasith, secretary-general of the National Broadcasting and Telecommunications Commission (NBTC), said the existing requirement for bank guarantees in spectrum licence auctions is considered too burdensome, as has become evident from past auctions.
The auction rules require winners of spectrum licences to place a bank guarantee worth 100% of the winning price when making their first payment with the NBTC.
"Reducing the bank guarantee requirements would directly ease interest costs for upcoming auctions and help operators get additional funding to participate in future auctions," Mr Takorn said.
He said the NBTC is considering reducing the value of the bank guarantee to just half the total of the winning price.
"Several telecom regulators in other countries do not have bank guarantee requirements for spectrum licence auctions, while some countries require only a low value in bank guarantees," he said.
Mr Takorn said reducing the bank guarantee would not create more risk for the state, as major mobile operators have a healthy financial status. It's unlikely their business would be destroyed if they defaulted on a single payment.
Even if the winners of licence auctions do default on payments, the regulator could file court proceedings against the winners to recover damages.
Narupon Rattanasamaharn, senior vice-president for the regulatory division of Total Access Communication (DTAC), said the reduction of bank guarantee requirements will help ease some financial burdens, especially interest costs.
The three major mobile operators have yet to complete the 900MHz licence payments: Advanced Info Service (AIS) and True Move H Universal Communication (TUC) from the 900MHz auction in 2015, and DTAC from the 900MHz auction in 2019.
AIS and DTAC have an additional financial burden for the 1800MHz licence payment instalments from last year's auction.
Mr Takorn said the NBTC plans to apply new bank guarantee conditions for the 2600MHz licences.
The NBTC hopes to auction a series of other ranges starting from the last quarter this year. There is 190MHz of bandwidth on the 2600MHz range, as well as 3000MHz of bandwidth on the 26- and 28GHz range.
The 2600MHz range is being used by state-owned broadcaster MCOT, which is in the process of returning the unused spectrum to the NBTC in exchange for financial compensation.
Mr Takorn said the NBTC will auction the 2600MHz band with the 26- and 28GHz in what it is being called a multi-band auction.
There is also a remaining 35MHz of bandwidth on 1800MHz and another 15MHz of bandwidth on 700MHz. The 1800MHz and 700MHz ranges are expected to be auctioned in April to June of next year.
The remaining 1800MHz will be auctioned through a normal auction, divided into seven licences, each comprising 5MHz of bandwidth. Another 15MHz of bandwidth on the 700MHz range will be auctioned through three licences, each comprising 5MHz.
ALL FOR 5G
All this financial manoeuvring around spectrum auctions is to expedite an eventual roll-out of 5G infrastructure nationwide.
Yesterday, the NBTC signed academic collaboration agreements with three universities -- Khon Kaen University, Chiang Mai University and Prince of Songkla University -- to develop 5G tech test centres nationwide.
The move followed a previous agreement between the NBTC and Chulalongkorn University this year to develop 5G technology and solutions, as well as research-related innovations.
Mr Takorn said the NBTC approved 56 million baht for Chulalongkorn University, and the centre is expected to begin testing in September. The NBTC may allocate approximately 50 million baht for each of the other three universities.
The NBTC invited all major global vendors to collaborate in the commission's 5G test framework, including three major mobile operators for testing sites.
Mr Takorn said the 5G test centres, along with the three universities, will help broaden 5G trial development and research studies.