Thailand’s long awaited, much maligned 3G-license auction is currently underway today amidst allegations and rumors of corruption and collusion.
Currently, Thai telecom’s Big Three – AIS, DTAC, and True – only hold temporary 3G concessions from the Thai state. These concessions are set to expire soon and will be replaced with a 3G licensing system as part of a larger effort to liberalize and privatize the Thai telecom industry.
The National Broadcasting & Telecommunications Commission (NBTC), the government body that regulates broadcasting and telecom, will auction off the 3G licenses today.
Don’t expect a very competitive auction, though. There are only three eligible bidders, nine license ‘blocks’ up for bid, and a maximum purchase of three blocks. In other words, each of the bidders is already guaranteed the three-block maximum. Convenient!
As noted in the Bangkok Post, only Australia and Switzerland have had 3G license auctions under equivalent circumstances. The final prices in those auctions amounted to a paltry 2% over the reserve price.
The profits of the auction go straight back to the state. More significantly for consumers, the licenses carry conditions. Among other stipulations, the holders must expand 3G coverage to include 80% of Thailand’s population within 4 years. The Bangkok Post reported that telecom scholar and outspoken critic Anuparp Thiralarp asked about the other 20%. There does not appear to have been an answer to his question.
According to the Nation, Mr. Thiralarp was petitioning for the suspension of the auction. He claimed the licenses did not clearly define quality standards, service costs, and equal access. He also pointed out that the it’s unclear how the auction’s profits will be used.
However, today the Central Administrative Court ultimately rejected Mr. Thiralarp’s petition to suspend the auction, so it’s all systems go.
While readers shouldn’t bank on any big surprises today, telecom observers are already predicting a real slobberknocker in the upcoming auction of a 4G-capable spectrum. While the date hasn’t been set, we do know from the Nation that there will be considerably less bandwidth on the auction block: only 25MHz compared to 45MHz. To spice things up further, True currently has a concession for half of that 25MHz. It’s unlikely they’re going to let it go to their competitors without a fight.
