True, AIS to mull draft of spectrum auction

True, AIS to mull draft of spectrum auction

NBTC expected to finish draft by June

People use their phones at a Bangkok mall. Mr Manat said major telecom operators faced a financial burden from the auctions of 4G and 5G licences over recent years given that they had to pay a hefty price to secure them. (Photo: Thanarak Khunton)
People use their phones at a Bangkok mall. Mr Manat said major telecom operators faced a financial burden from the auctions of 4G and 5G licences over recent years given that they had to pay a hefty price to secure them. (Photo: Thanarak Khunton)

Two major mobile phone service operators are preparing to consider a draft of the planned auction of three spectrum bands -- 850 megahertz, 2100MHz and 2300MHz.

The National Broadcasting and Telecommunications Commission (NBTC) is expected to finish the draft by June.

Though their existing spectrum bandwidth is enough to serve operations over the next two years, True Corporation and Advanced Info Service (AIS) are eager to ensure they have sufficient spectrum portfolio to enhance the customer service experience and for the future development of 6G service.

The 850MHz, 2100MHz and 2300MHz bands have been held by state telecom enterprise National Telecom (NT) but its right to use them will expire in September 2025.

Manat Manavutiveth, True Corporation's chief executive, said a clear auction roadmap for the three spectrum bands or even other bands is critical for the telecom operator to draw up a plan to serve the demand of data usage among customers.

He added that clear conditions of the reallocation of the three spectrum bands should be finished before the expiry of NT's right to use them.

Mr Manat said major local telecom operators have faced the financial burden from the auctions of 4G and 5G licences in recent years, given that they had to pay a hefty price to clinch the licences.

This indicates that the bid winning price of spectrum bands in auctions in Thailand is higher than those in other countries.

Besides the high price required to win the bid, the winners are also obliged to invest and expand their network coverage in line with the conditions of the licences.

Mr Manat added that the planned auction of the three spectrum bands should not bring too much burden to operators as a mobile phone service is crucial for people's daily life.

Somchai Lertsutiwong, chief executive of AIS, said telecom operators have to explore all opportunities for providing services and fostering a positive customer experience in a competitive market.

On the subject of the planned auction of these spectrum ranges, Mr Somchai said there are three factors influencing AIS's decision as to whether the company would participate.

The factors are the conditions or cost of acquiring the right to use the spectrums, the company's intention to serve improved operations, and a competitive scheme to ensure AIS's leading position in the market, such as a rival's participation in the auction.

Mr Somchai said the existing bandwidth of AIS's spectrum portfolio would still be able to serve its operations for at least two years.

AIS has to closely follow the move by NBTC to auction or reallocate the three bands or any bands in the future as spectrum is crucial for providing innovative services to customers.

"We are eager to see the licensing conditions before deciding what we will do in the near future," Mr Somchai added.

Recently, NBTC commissioner Somphop Purivigraipong, who is responsible for telecom affairs, said the subcommittee is in the process of drafting a spectrum management roadmap to deal with the three spectrum ranges as well as the 3500MHz band.

The roadmap is expected to be unveiled by June.

The NBTC also urged NT to outline its business and operations after the expiry of its right to use the three bands and submit its plan to the NBTC.

Mr Somphop agrees that the planned auction of the three ranges must not add too high a cost for interested bidders as they might opt to pass the high financial burden to consumers in the future.

He added that the NBTC office would hold two separate focus group discussions after completing the draft. The auction or reallocation is expected to be completed before September 2025.

Personally, he thinks the 3500MHz band is more attractive for operators than the other three spectrum ranges as the 3500MHz range has real market demand and can be used to promote 5G private network for vertical industries.

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