True may pass on spectrum bid

True may pass on spectrum bid

A source says the company has no time to secure B37.45bn in minimum funding for the auction. By Komsan Tortermvasana

True Move's booth for tourists at Suvarnabhumi airport. The No.2 mobile firm says it is unlikely to show up for the NBTC's Aug 4 auction of 18MHz spectrum. (File photo)
True Move's booth for tourists at Suvarnabhumi airport. The No.2 mobile firm says it is unlikely to show up for the NBTC's Aug 4 auction of 18MHz spectrum. (File photo)

True Move, the country's second-largest mobile operator, might not join the planned 1800-megahertz spectrum auction in August unless the bidding is postponed by at least three months, a delay that would help the company raise the necessary funds for the 37.45-billion-baht minimum reserve price, says an industry source.

"We are urging the NBTC to postpone the auction by another three months," the source said.

True Move will not have enough time to secure the minimum 37.45-billion-baht reserve price of each 1800MHz licence (for 30MHz of bandwidth of download and upload), the source said.

True Move's bid budget needs to be approved by its existing creditors, shareholders and board of directors. Raising its registered capital would require a similar string of approvals.

The source said True Move previously talked with mobile leader Advanced Info Service (AIS) to persuade it to write a letter on the postponement issue. True Move submitted its letter to the secretary-general of the National Broadcasting and Telecommunications Commission (NBTC) Wednesday.

While True Move's top executives signed the letter, their counterparts at AIS failed to do so as originally planned. The auction's postponement, therefore, was not listed as an urgent item at Wednesday's NBTC meeting.

Takorn: Operators' mobile proposals weren't received

NBTC secretary-general Takorn Tantasith told the Bangkok Post that he did not receive any letter or proposal from the mobile operators.

The same source said True Move and AIS have carried heavy financial burdens since winning licences for the 1800MHz and 900MHz spectra during the 2015 auctions.

But AIS's balance sheet is decidedly healthier than True Move's, with a lower debt-to-equity ratio and a higher return on investment.

The NBTC plans to auction a total of 90MHz of bandwidth (upload and download) on the 1800MHz spectrum for three licences, each containing 30MHz of bandwidth (upload and download).

The portion of the 1800MHz spectrum now run by Total Access Communication (DTAC) under CAT Telecom's 2G concession will expire on Sept 15.

Each 1800MHz licence has a reserve price of 37.45 billion baht (for 30MHz of bandwidth) and a lifetime of 15 years. The 37.45-billion-baht reserve price is based on the winning price of the previous 1800MHz licence auction in 2015.

Under the existing timeline of the 1800MHz auction, the NBTC will disseminate the auction's conditions to the public and invite interested bidders to take part via all channels between May 15 and June 14. All interested bidders must submit bid documents to the NBTC's office on June 15.

The NBTC will name qualified bidders on Aug 2 after the verification process. The auction is scheduled for Aug 4.

True Move's request suggests that this year's 1800MHz auction may be less competitive than expected by the NBTC, the source said.

"DTAC is now seen as the most probable bidder for the upcoming 1800MHz auction, as it needs to ensure it has enough spectrum capacity and band variety to provide mobile service in the long term," said another industry veteran.

DTAC is the only major operator that failed to secure any licences in the 2015 auctions. DTAC may be the only major operator that needs the 1800MHz auction to be held before its concession expires.

"A faster or delayed timeline would not affect the network capacities of either AIS or True Move, since they already secured 15-year 1800MHz licences at the 2015 auction," the industry veteran said.

Prawit Leesathapornwongsa, an NBTC commissioner, said the auction outcome could directly affect the future of the existing NBTC board.

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