Thailand Proposes $100-$200 Million Reserve for 3G Licenses

­Thailand's telecoms regulator has proposed a minimum reserve price of between US$100-200 million for the upcoming 3G license auction. The proposals for the auction will be put to the board of the regulator, the National Telecommunications Commission (NTC) later this week for approval.

If approved, the the actions are expected to take place by the end of this year, with the winning networks anticipated to formally launch services in the second half of 2010.

Gen Choochart Promprasit, the chairman of the industry regulator told the Bangkok Post that the prices were considered thoroughly based on several criteria. These included industry data, auction prices in other countries, prices of spectrum that TOT had returned to the NTC, and prices of the 1900 MHz spectrum that TOT bought from CAT Telecom for the Thai Mobile service.

In total four licenses will be offered, with three of 10 Mhz and a fourth with 15Mhz of radio spectrum.

The incumbent operators are already running small trials of 3G networks over their existing GSM radio spectrum, while CDMA operator, CAT Telecom is seeking an overseas investor to assist in 3G rollout plans.

The regulator is also planning to auction of a series of WiMAX licenses. A recent report suggested that the licenses should be offered on a regional basis. The auction of the licenses is not expected to happen until after the 3G license auctions, which should also give the regulator time to refarm the WiMAX spectrum from its current users.

Debt ratings agency, Fitch recently said that despite the high capex - the key benefit of the 3G licence is lower regulatory costs - which should boost the operators' profit margin over the medium-to-long-term.

On the web: Bangkok Post - National Telecommunications Commission

Posted to the site on 12th October 2009