National Telecom (NT), a merged unit of TOT and CAT Telecom, is weighing whether to abandon the 700-megahertz frequency range CAT won from last year's 5G spectrum auction by forgoing the licence payment following its concerns about the viability of moving into the 5G business, says a source close to the NT board who requested anonymity.
Once NT defaults on the licence payment, it may use the money to buy a large quantity of shares in Total Access Communication (DTAC) as part of its strategic 5G business move via the country's third biggest carrier, the source said.
The purchase of a 20-30% stake of DTAC would foster business partnership between NT and DTAC through spectrum portfolios held by the two and telecom infrastructure cooperation, the source said.
However, there is still a price to pay for defaulting on the licence payment with the spectrum forfeited as NT would have its auction deposit confiscated, plus a forfeit for the damage incurred in relation to the auction.
The source said whether NT would make a move on the matter would be ascertained once the new digital economy and society (DES) minister comes into office.
The source also revealed Prime Minister's Office minister, Anucha Nakasai, is now on track to become the new DES minister, replacing Buddhipongse Punnakanta, who lost his position after the Criminal Court sentenced him to seven years in jail for charges in connection with his role in the defunct People's Democratic Reform Committee's demonstration against the Yingluck Shinawatra government from 2013-2014.
"Although a licence payment default and the return of the licence would come with a cost of around one billion baht, this is very small compared with the ambiguity of its 5G investment, which carries a cost of 50-60 billion baht from the beginning," the source said.
Last year, Mr Buddhipongse assigned both state telecom enterprises TOT and CAT Telecom to join the 5G spectrum bids.
CAT Telecom caught the industry by surprise as it won two slots on the 700MHz range at a total cost of 34.3 billion baht, while Advanced Wireless Network, a subsidiary of Advanced Info Service (AIS), secured another slot on the frequency for 17.1 billion baht.
Before losing his position, Mr Buddhipongse said he wanted the NT mobile brand to be rolled out in March.
NT has been in talks for partnership deals with AIS and True Move H Universal Communication, the top two carriers, allowing NT to provide a 5G service on the carriers' 2600MHz spectrum.
The source said the talks are likely to be at stake after NT's board considers ditching the 700MHz range.
"It will be interesting to see how the new minister will deal with NT's 5G strategic move as well as design the structure of the NT board," the source said.
NT, which was formed in January, currently has five board members and Mr Buddhipongse earlier indicated that another six members will be added to streamline the company's operations through five core businesses.
NT board chairman ML Chayotid Kridakon recently assigned the firm's management to set up a working panel to explore business opportunities for 5G service, including partnership deals with other players in addition to those the company is already in talks with.