New faces unlikely to enter auctions.
New foreign participation in the 3G mobile broadband auction in Thailand next month is unlikely, given the confusion over many aspects of the bidding terms, says an independent telecom expert.
Limits on how spectrum can be used and lack of clarity about pricing make it difficult for operators to develop reliable 3G business plans, said Anuparb Thiralarp.
Other unaddressed issues include interconnection charges, adherence to international standards, and universal service obligation details.
"These issues mean that foreign companies will be unable to estimate tangible financial figures and real costs, and their business case," Mr Anuparb said. "Possible legal disputes in the future are also a major concern."
First, he said, the 3G licence the National Telecommunications Commission (NTC) proposes to grant is not a "unified licence" under the international standard that allows a holder to utilise the spectrum granted for any telecom services.
The NTC has stipulated that winning bidders must use licences to provide mobile service on the 2.1 GHz spectrum under IMT-2000 standard of the International Telecommunications Union.
If and when technology migrates to 4G under another standard that is not IMT, then the operator could not provide advanced services.
The interconnection charge (IC) system is another problem, says Mr Anuparb, because the two state telecom enterprises, TOT and CAT Telecom, are still not participating. The private operators have agreed on IC rates, which are charged for handling calls across different networks. AIS, DTAC and True Move charge each other 1.07 baht a minute for IC while the small Hutch service charges 50 satang.
IC is a significant component for operators in overseas markets, at up to 25% of overall revenue. Mr Anuparb said that if the NTC cannot enforce IC across the board and include the state telecoms, it would be difficult to forecast revenues and cost.
As well, he said, the NTC has not specified maximum pricing for 3G services. The regulator sets a maximum price of three baht a minute for conventional 2G service, but 3G will be mainly for data and video rather than voice.
The NTC created further confusion last week when it said it intended to curb "foreign dominance" in the telecom sector. Details of how it intends to do this remain vague, but it indicated that the nationality of senior executives of telecom companies doing business in Thailand would be looked at.
This could affect second-ranked DTAC, in which Telenor of Norway is the major shareholder and the chief executive and chief commercial officer are Norwegians.
DTAC has not yet confirmed participation in the 3G auction pending a study by its legal team.
Sigve Brekke, the CEO of Telenor Asia, said Telenor expected to make a final decision by Aug 24, the day the government is scheduled to release details of its proposal to replace existing 2G concessions with 15-year licences.
Mr Brekke said Telenor was interested in a 3G licence to encourage the uptake of high-speed mobile broadband services. But it wants more concrete information from the NTC as well as details on business potential and profitability for DTAC before making a final decision.
"I'm waiting to receive the study's conclusion from the DTAC board, on which I also sit," he said. "Then, I will submit the information to Telenor before the [Aug 24] deadline."
In Mr Brekke's view, 2G concessions and the 3G auction are two separate issues.
With or without conversion, the 3G auction should go ahead, he said.
The auction is scheduled for the fourth week of next month, and would last for seven to eight days depending on the number of bidders. Twelve rounds of bids will be opened per day. Bidders are required to bid 640 million baht each time.
The NTC is considering resort locations in five provinces, no more than 300 kilometres from Bangkok, such as Pattaya or Hua Hin, for the auction.
Summary, It too slow to develop 3G technology in Thailand. It must be in Thailand for 2 years or over. Today we have driver,but it data receiver not data transmitter. If NTC are not authority to any telecom network. It might be pull economic in Thailand down to deep of ocean
AWL 01 analysis
Text wordcount = 51
Frequency of list words detected = 4
Rounded Coverage = 8%
Oxford 3000 analysis
Text wordcount = 51
Frequency of list words detected = 40
Rounded Coverage = 78%
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