Page 127 - SAMENA Trends - February 2020

REGULATORY & POLICY UPDATES SAMENA TRENDS

NBTC Gears Up for 5G Auction

Thailand is set to hold its 5G auction with 700MHz and 2600MHz frequency ranges Section 44 to bail out digital TV operators
the telecom regulator warning bidders will be contested by AIS, TUC and CAT. and delay payments for three 4G license
to be realistic with their offers as the All but CAT will vie for the 26-gigahertz operators for another five years. On the
government can no longer intervene to range. No company has registered to bid bidding day, Mr. Takorn said bidders will
help should their business models not for the 1800MHz range. “I want to reiterate draw for auction rooms at 8.15am and the
prove viable. Takorn Tantasith, Secretary to the bidders that they should be prudent first auction will start with the 700MHz
General of the National Broadcasting in submitting bidding prices. Unlike in the spectrum at 9.30am. He said the “clock
and Telecommunications Commission past, they will not have Section 44 to help auction” system will be used for the 5G
(NBTC), said the NBTC is fully prepared anymore,” said Mr. Takorn. The secretary- auction for the first time in the country. The
for the electronic auction. The agency has general said the telecom bidders should auction will proceed on a round-by-round
organized six rooms for the five qualified learn from the auctions of digital TV basis, where products are split into smaller
bidders. The extra one is in case of an licenses in 2013 and 4G licenses from sets and they can open auctions at the
unexpected hiccup with one of the other 2015 onwards when the reference price same time. Mr. Takorn earlier estimated
five. The secretary-general led the press to for digital TV and the 900MHz spectrums the combined winning prices in the auction
visit the venue to be used for the historic were set at 10 billion baht for each license could surpass 70 billion baht while overall
auction at NBTC headquarters. The but bids exceeded 50 billion baht for digital 5G network investment could reach 130
bidders are Advanced Info Service (AIS), TV and 70 billion baht for the 4G spectrum. billion baht this year and 200 billion in
True Move H Universal Communication In April last year, the now-defunct National 2021.
(TUC), Total Access Communication Council for Peace and Order, used its
(DTAC), TOT Plc and CAT Telecom Plc. The special powers under the interim charter’s

Thai Operators Bid $3.2B on 5G

Strong interest from operators in Thailand pushed up spectrum
prices in an auction which exceeded government expectations, as
three lots of the 700MHz band alone generated THB51.4 billion
($1.64 billion) in bids. State-owned CAT Telecom acquired two
of three 5MHz blocks available for THB34.3 billion, which its
president Sappachai Huwanan hailed as an important milestone,
with the company preparing to use the low frequency band
to expand its 4G and 5G coverage, and increase capacity. He
noted the 700MHz band is key for the future as its holding in the
850MHz band expires in 2025. The auction of 2805MHz across
the 700MHz, 2600MHz and 26GHz bands raised THB100.5 billion,
with all but one 100MHz lot of 26GHz spectrum sold in a one-
day auction yesterday (16 February). Market leader AIS was the
major winner, spending THB42.1 billion for the remaining 5MHz
block in the 700MHz band, 100MHz of 2600MHz and 1200MHz
in the 26GHz band. It was restricted from bidding for more due a band for THB910 million. Dtac CEO Sharad Mehrotra said with
100MHz cap in the 2600MHz band and 1200MHz cap in 26GHz. the acquisition of 26GHz spectrum, “we now have access to low-,
True Move, the second-largest operator by subscribers, picked up mid- and high-band spectrum to provide our customers with the
90MHz of 2600MHz spectrum and 800MHz in the 26GHz band for best data experience in the future”. Thailand’s regulator raised its
THB21.45 billion. State-owned TOT acquired 400MHz of 26GHz expectations for proceeds in late January, after the government
spectrum for THB1.8 billion, while dtac purchased 200MHz in the approved participation by state-owned operators.

127 FEBRUARY 2020