NT to skip mobile spectrum auction amid cost concerns
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NT to skip mobile spectrum auction amid cost concerns

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State enterprise National Telecom (NT) will not participate in the planned auction of the 850-megahertz, 2100MHz and 2300MHz mobile spectrum licences because it expects fierce bid competition, potentially resulting in hefty payments for the licence winners.

At a previous auction for 700MHz licences, NT clinched one by paying a high price based on competitive bidding, said company president Col Sanphachai Huvanandana.

NT holds rights on the 850MHz, 2100MHz and 2300MHz spectrum, but they are due to expire in August this year. They must be returned to the National Broadcasting and Telecommunications Commission (NBTC) for reallocation.

However, NT may reconsider its stance if the planned auction includes other spectrum ranges such as 2600MHz and 3500MHz, and if the bidding conditions are not focused on bid prices, said Col Sanphachai.

The company may also consider joining the auction if it has a potential bidding partner, he said.

NT will not join the bid alone for the three spectrum ranges, said Col Sanphachai.

NT operates the 850MHz, 2100MHz and 2300MHz spectrum under private partnership agreements, which have generated an annual revenue stream for NT of around 36 billion baht and annual profit of 9 billion baht.

He said NT has only a 2% share of the mobile service market, as it does not fiercely compete with the major players, preferring to keep its price affordable for some segments.

The company is focused on existing 4G service rather than 5G because NT does not want to pay excessive network roaming fees to 5G operators, said Col Sanphachai.

"Our 4G service on the 700MHz spectrum is for people who are satisfied with our 4G network as well as enterprise groups," he said.

NT is migrating its subscribers on the three expiring spectrum bands to the 700MHz band. Around 300,000 have already migrated.

CAT Telecom, prior to merging with TOT to become NT, snapped up the 700MHz licence from a 2020 NBTC auction, paying 34.3 billion baht.

That price is double the amount paid by private telecom operators in a previous auction of the 700MHz range, given the same amount of spectrum bandwidth, said Col Sanphachai.

However, NT's 700MHz service has not generated a large revenue stream, even though it already paid three billing cycles to the regulator for the licence fee.

Last year, NT paid more than 1 billion baht in network roaming fees to private mobile phone operators.

The roaming expense stems from the gradual switching off of its service on its three other spectrum bands to migrate its customers to the 700MHz band before expiration.

As many of NT's mobile customers use devices incompatible with the 700MHz band, they roam using the spectrum bands of private operators. As a result, NT pays the roaming fees.

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