Telecoms industry fears new 3G holdup

Next week's planned auction of third-generation wireless licences could be suspended due to a last-minute challenge from the Administrative Court. Telecommunications expert Anuparp Thiralarp said he would lodge a legal suit Wednesday, asking the Administrative Court to suspend the 3G licence auction.

The filing will ask the court to suspend the auction until the National Broadcasting and Telecommunications Commission (NBTC) amends its regulations to "better benefit the public in compliance with the constitution", Mr Anuparp said.The NBTC plans to auction off bandwidth in the 2100 megahertz band on Oct 16. The three main private mobile operators - Advanced Info Service (AIS), Dtac and True Move - all are expected to bid for spectrum.While all three currently offer limited 3G services using the 850 MHz band, the shift to the 2100 MHz frequency would move the country's telecommunications infrastructure closer to international standards. More importantly, all three providers would be able to offer services outside of the constraints and revenue-sharing deals made under their current telecom concessions with state-owned TOT Plc and CAT Telecom.Telecom analysts and experts warned that further delays in the auction of 3G licences would be highly negative for the industry's development as well as for investor confidence.A prior attempt to auction licences in 2010 by the NBTC's predecessor, the National Telecom Commission, was also derailed at the last moment due to a court injunction.But Mr Anuparp said the current auction process lacked four key conditions that would help ensure the public's interest was served, starting with bandwidth standards that would clearly stipulate the faster speeds and benefits consumers would receive from 3G.He said the NBTC also lacks rules that would regulate pricing of data transmissions charged by operator, a loophole that could result in licence holders increasing data charges at the expense of consumers.Thirdly, he said, the auction framework does not specify the responsibility of licence holders to provide services to the disadvantaged or consumers in remote areas. Mr Anuparp said that in other countries, telecom regulators generally stipulate minimum service requirements for licence holders to ensure widespread coverage, but the NBTC has ignored this issue altogether.Mr Anuparp also argued that the NBTC has not stipulated what it will do with the tens of billions of baht potentially to be gained from the sale of 3G licences, whether it be to remit the proceeds to the government or reinvest the funds into public services and infrastructure."The public is the owner of this frequency. Yet the 3G auction does not maximise the benefits for the public, as required by the constitution," he said.But NBTC commissioner Pravit Leesatapornwongsa questioned whether Mr Anuparp had standing to file a suit, as he had no direct interest in the auction.Mr Pravit said the situation differed considerably from the 2010 auction, which was delayed by a court injunction based on a suit filed by CAT Telecom, which did have an interest in the case.Regardless, the NBTC plans to announce the names of the qualified bidders Monday. A disqualified applicant will have three days to appeal. The auction schedule calls for bids to be submitted on Oct 16, with winners announced on Oct 22. Up for auction are nine 5-MHz blocks of spectrum, with the reserve price for each block set at 4.5 billion baht.Industry executives expressed dismay at the prospect that the auction could fail. Wichian Metrakarn, the chief executive of market leader AIS, said: "It would be a disaster for the country if the auction cannot be held on schedule," he said.Somkiat Tangkitvanich, a telecoms expert and the president of the Thailand Development Research Institute, questioned whether Mr Anuparp's argument was sufficient to block the auction.Regarding the proceeds of the auction, he said the NBTC was normally obliged to revert any excess revenues to the Finance Ministry.The NBTC also had a clear mandate to regulate tariffs, and Dr Somkiat said it was not necessary to stipulate ceilings right from the start."Personally, I don't agree with the [challenge]. But it will be up to the court to decide," he said.Market analysts warned that a failed auction would hurt investor sentiment and the country's competitiveness.Kongkiat Opaswongkarn, chief executive of Asia Plus Securities, said a delay would hinder the country's growth."Thailand needs a more developed telecoms infrastructure," he said. "3G doesn't just benefit [the operators]. The benefits of faster bandwidth are numerous, whether it be in terms of worker mobility or remote education."Pichai Lertsupongkit, an assistant managing director at Thanachart Securities, said market sentiment would be clearly affected in trade Monday."If the court does issue an injunction on the auction, expect to see panic selling in telecom stocks," he said, as current share valuations are already based on a successful 3G licence auction.Sukit Udomsirikul, a managing director and head of research at Maybank Kim Eng Securities, agreed, noting that telecom share prices fell sharply following the failed auction in 2010.After the court intervened in September 2010, shares of all three main mobile operators fell sharply, with True Corp, the parent of TrueMove, losing 25 per cent in value in one day.

Share your thoughts

Discussion 1 : 08/10/2012 at 05:55 PM
Basic understanding is required here. There is money on the table (maybe under the table as well, by Thai standard) to be made by the RIGHT people. Until all the RIGHT people feel that they have their acceptable share, there shall be no progress. Importantly, they are looking at making money from not only 3G but 4G as well. So they will not just forget about 3G because of it is out of date or for whatever reasons. After all Thais are stupid enough to buy 3G phones for the last few years without having the 3G network, why bother! The RIGHT people do not ever concern themselves with the WRONG people. If you were not one of the RIGHT people, highly likely that you are the WRONG people. Fortunately, being the WRONG people is simple, you are always wrong so just shut up and go away!
Discussion 2 : 08/10/2012 at 04:03 PM
Those of you who disagree with me please tell me who the airways belong to if not the country and that in turn is the people.Granted pay of public debts with it but do not let corruption get at it.
Discussion 3 : 08/10/2012 at 03:04 PM
It could be a good thing if the whole process could start again as 3G is coming to an end of its useful life. Global handset and PC manufacturers are now launching 4G LTE equipment. Clearly 4G LTE is the standard both Business and Consumers are looking for as it offers vastly more performance yet can be run on much of the existing infrastructure. Given also the poor state of fixed line ADSL in many parts of the Country, LTE can offer better performance and introduce greater competition into the Market Place.
Discussion 4 : 08/10/2012 at 02:08 PM
The 3G auction has become a laughing stock and a perfect example of governmental incompetency.
Discussion 5 : 08/10/2012 at 02:05 PM
As the headlines accurately state that it's but a tease. Khun Anuparp likes to hoard the lime light as he did with the Shin Corp and Temasak joint venture. Everything that he lodged with the Admin Court have answers, perhaps not to his interpretation. A storm in the tea cup and will be drop by the AC. Total non event.
Discussion 6 : 08/10/2012 at 01:26 PM
The rules of the auction is simple Nothing will happen until the correct fees are paid to the right people Until then nothing is going to happen Why does it constantly surprise people that nothing gets done until the right people get there piece of the action ?
Discussion 7 : 08/10/2012 at 11:19 AM
The money paid by the auction should have to go to public coffers.I understand the argument.The way it sounds to me the money gained will be controlled by the wrong people if you get my drift.
Discussion 8 : 08/10/2012 at 10:56 AM
Does 3g mean Good Greedy Graft??? Gee, can somebody get going.
Discussion 9 : 08/10/2012 at 10:16 AM
Now there is Last-Minute Confusion added to Incompetence! Come'on Thailand, get it together! PT is supposed to be "business savvy!"
Discussion 10 : 08/10/2012 at 10:10 AM
Even some countries in Africa have 4G, and it is rolling out all around the world while Thailand still argues about moving past 2G. Amazing.
Discussion 11 : 08/10/2012 at 10:06 AM
thailand is happy to stay where they are in politics,law and order and corruption the new book cover looks impressive but inside the same malfunctionly that will never depart, accept be happy and let it be, cos nothing is going to change,the acemdemics and the elite have personal invested interest is at stake, and one disturbed and greedy man is now pulling all the strings
Discussion 12 : 08/10/2012 at 09:48 AM
It's so simple, to have 3G here all the right people need paying off. until then nothing will happen.
Discussion 13 : 08/10/2012 at 09:28 AM
The "game-show" like picture accompanying this article says it all loud and clear, we are run by children who's mindset is still at Anubaan level.
Discussion 14 : 08/10/2012 at 08:10 AM
As I've said before: by the time Thailand finally gets its collective act together to officially have 3G, the rest of the world will be on 128G. Let's face it, actual 3G (and most likely 4G) will never happen here.
Discussion 15 : 08/10/2012 at 08:02 AM
Shy not skip 3G and move on to 4G
Discussion 16 : 08/10/2012 at 07:26 AM
What IS the matter with these people? They have had months to protest and complain but wait until just before the auction to get the most publicity and most inconvenience to the whole country. Nepal can put a 3G site on Mt Everest, there can't be more than few countries left in the world on 2G and one person complains so the whole process is put on a tentative hold. No wonder Thailand is a joke in the world and the sad thing is that the Thais cannot see it.
Discussion 17 : 08/10/2012 at 06:57 AM
Really not an expert and actually not much interested in 3G, but if the conditions are not clear or they haven't done or prepared their job properly (again), then maybe they have to learn the hard way until they can do it right.
Discussion 18 : 08/10/2012 at 06:50 AM
I think the man has some very valid points but given the delays, they should be considered as retro-active amendments. The main reason this whole 3G thing has been delayed time and again, is because of the massive lucrative opportunity it affords both the concessionaires and the govt selling the licenses, which is why there is all this jockeying and political interference.
Discussion 19 : 08/10/2012 at 06:49 AM
It's outdated anyway now so why bother.
Discussion 20 : 08/10/2012 at 03:39 AM
It is fantastic to see that there is someone out there who still think of these things. When Thailand, oh, if Thailand would ever have this wonderful but old technology 3G, it will be so perfect that everyone on this planet will benefit from it, rich or poor. In the mean time, let's start talking about 4G now so that everyone will have time to lodge their own legal suit early!
Discussion 21 : 08/10/2012 at 02:01 AM
They are aware that the rest of the world is gearing up for 4G, right?
Discussion 22 : 08/10/2012 at 01:10 AM
Well! I am just stunned! Yet another delay in implementing 3G. Hard to believe. Seems nothing is done for the honest betterment of the country without first setting up the monopoly and ‘rip off’. Thailand will never be an innovator in technology but destined to delayed copying of others. Seems the antiquated 3rd world infrastructure in educational methods from the dark ages, a neglected rail system and unsuccessful water management will now be the model for the telecom networks needed to join the modern world. Really no 3G yet, it’s like a joke.
Discussion 23 : 08/10/2012 at 12:18 AM
Its has been proven many times over that these people are incapable of handling this simple task .Why are allowed to fumble along like this .If I ran a company like this I would have been bankrupt years ago .

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