The board of the National Broadcasting and Telecommunications Commission (NBTC) have endorsed a partnership deal between National Telecom (NT) and Advanced Info Service (AIS) regarding NT's 700 megahertz spectrum.
Under the deal, NT will transfer the right to Advanced Wireless Network (AWN), a subsidiary of AIS, to use half of the spectrum's 20MHz bandwidth.
However, AWN must reserve 20% of its 10MHz spectrum capacity for any mobile virtual network operator that might be interested in renting the capacity to offer a service, according to NBTC's criteria and method for transferring a spectrum licence.
A source on the NBTC board who requested anonymity said the board's approval came after the two NBTC subcommittees tasked with considering the deal endorsed NT's plan to transfer half of the spectrum bandwidth to AWN.
NT, a state enterprise, was created through the merger of TOT and CAT Telecom. It signed a memorandum of partnership with AIS last year regarding its 700-MHz band.
Prior to the merger with TOT, CAT won 20MHz of the 700-MHz spectrum for upload and download from NBTC's auction in 2020, which was valued at 34.3 billion baht.
The cabinet granted approval to NT on March 14 to move ahead with its 700MHz investment and operational expenditure through a combined budget of 61 billion baht over a period of 14 years. However, NT has yet to provide a commercial service on the 700MHz spectrum, either through its own operations or via a partnership deal.
Through the partnership model, AIS plans to buy and operate half of NT's 700-MHz spectrum capacity and will pay half of NT's 700-MHz licence fee to the telecom regulator until end of the payment term.
NT will rent and pay a rental fee to AIS's cellular network and related equipment for providing its 5G services on the remaining 10MHz bandwidth until end of the licence term.
The deal will help NT reduce half of its 700MHz licence cost, although NT will have to pay a network rental fee to AIS until end of the licence's term. AIS will also be able to boost the capacity of its own 700MHz spectrum to 40MHz of bandwidth from the current 30MHz bandwidth.
AIS's rivals, True Corp and Total Access Communication (DTAC) each holds 20MHz bandwidth. True and DTAC already merged into single company called True Corporation. The merged company holds a combined 40MHz of bandwidth on the 700MHz range.
AIS chief executive Somchai Lert- sutiwong previously told The Bangkok Post that AIS will invest in the 700MHz network expansion to serve utilisation of mobile phone service for both AIS and NT. The 700-MHz project will boost the both companies' capability in the long term.
A source on the NT board who requested anonymity earlier said the partnership deal is in line with the amended NBTC law, which allows more flexible criteria of applying for additional business licences, spectrum licence transfer and spectrum licensing regime through other means, not solely via the auction method.
The law now allows spectrum licence holders the right to transfer spectrum use to others in exchange for the latter to pay the remaining licence payment terms for the former.
NT has placed three instalments of its 700MHz licence to NBTC, with 3.3 billion baht each for the first instalment in 2021 and the second instalment in 2022. For the third instalment in 2023, NT recently placed only 1.65 billion baht, while AIS was responsible for the remaining half on behalf of NT, though the company has yet fully utilise the spectrum's bandwidth.
SCRUTINY PERIOD EXTENDED
In another development, the NBTC board on Aug 23 agreed to the request of a subcommittee the extension of its timeframe of scrutinising the takeover deal of fixed broadband service 3BB by AIS for another 60 days from the original end of the timeframe on Aug 22.
This subcommittee is responsible for studying the economic impact of the deal. However, the 60-day extension is just a broad framework as the subcommittee may be able to finish the study before the end of the new deadline, the source at the NBTC board added.
The NBTC board set up four subcommittees to scrutinise the deal, comprising subcommittees on the economic effect, technical effect, legal effect and consumer benefits.
The subcommittee for consumer benefits has already completed its study and held a public hearing on July 25 with the focus groups of consumers and related parties. The subcommittees on legal and technical issues have also finished their studies of the deal.
Source: https://www.bangkokpost.com/business/general/2637669/