- Published: 16/10/2012 at 05:04 PM
The National Broadcasting and Telecommunications Commission (NBTC) divided the 45 MHz bandwidth into nine slots and set a minimum bid of 4.5 billion baht for each.
Bids increase in 225 million baht increments, or 5% of the floor bid. Each bidder was entitled to a maximum of 15 MHz, or three slots.
There were three qualified bidders: Advanced Wireless Network, a subsidiary of Advanced Info Service (AIS); DTAC Network, a subsidiary of Total Access Communication (DTAC); and Real Future, a part of True Corporation.
AIS vice chairman Somprasong Boonyachai, DTAC's CEO Jon Eddy Abdullah and True's CEO Suphachai Chearavanont led their respective teams for the auction.
In the first round of bidding, only six slots reached the tender price. One slot was ignored until the sixth round of bidding, so this particular slot was auctioned off at the floor price of 4.5 billion baht.
In conclusion, two slots were auctioned off at 4.95 billion baht each, one at 4.725 billion baht and six at 4.5 billion baht each.
Advanced Wireless Network secured three blocks of the spectrum in nine slots for a total price of 14.625 billion baht. As the bidder who offered the highest price, AIS had the right to choose the bandwidth first: 1950-1965 MHz for uplink and 2140-2155 MHz for downlink.
Both Real Future and DTAC Network offered the final prices at 13.5 billion baht each.
Real Future won the draw and chose the bandwidth slot of 1935-1950 and 2125-2140.
The combined final price was 1.125 billion baht higher than the floor price, or around 2.8% higher than the floor price.
Paiboon Amornpinyokeat, an information and communication technology lawyer and the founder of the P&P law firm, said earlier he suspected that if the final auction prices were not 10% higher than the floor price, there would be public concern over possible price collusion.
The three bidders earlier announced they would spend a combined 130 billion baht on the 3G network rollout over the next three years. They plan to launch 2.1GHz 3G commercial services by mid-2013.
Share your thoughts
- Discussion 1 : 16/10/2012 at 10:55 PM
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Tomorrow the upset people will be all over the news. The point, though, is that they, the people, will be the ones paying for 3G as telcos will pass the cost of the license on the customers. Higher auction price means higher service charges later on. You can't have you cake and eat it, too.
Income from the auction is not earmarked for anything specifically anyway, it will be transferred to the Finance Ministry and spent on rice or some rotten onions. If telcos invest 130 bil in setting 3G network then 45 bil for licenses is 25% of total expenditure taken by the government, on top of normal corporate taxes.
Some would argue that 3G spectra belong to everyone, not only to people who can afford to use it, so it's fair to charge high prices for it, but, on the other hand, higher licensing charges that lead to higher prices and lead to further exclusion of disadvantaged.
- Discussion 2 : 16/10/2012 at 09:40 PM
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Well whoopee! So licenses were finally sold for the antiquated 3G. Just how long before the system is up and running? Just how much increase in price will the customer get stuck with? What recourse will the customer have if the system fails to deliver? I see this as a much bigger celebration for the companies with licenses to profit than the customer who will be less than jubilant. I base my skepticism one all past telecom experiences.
- Discussion 3 : 16/10/2012 at 07:56 PM
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Why would there be a price collusion ?
There were 9 slots available and 3 bidders who could not get more than 3 slots each.
With the remaining “economic life” of those obsolete 3G licences there seems to be not much incentive to overbid.
- Discussion 4 : 16/10/2012 at 07:04 PM
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3 bidders only allow 3 slots out of 9 slots available to each bidder, how can that give fair auction bid price? Sounds like a set up to me!
- Discussion 5 : 16/10/2012 at 06:53 PM
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Thailand has yet again made international headlines and clearly demonstrated to the world how truly behind the country really is, by bidding for an already obselete system... congratulations!
Meanwhile... back in the real world, many countries are already enjoying 4G which is already way-passed its sell-by-date. By the time Thailand actually distributes 3G nationally, 5G which is the latest system now in place, will be in full swing and is being adopted by many already. Can somebody tell why Thailand is lagging behind so many others ?
- Discussion 6 : 16/10/2012 at 06:34 PM
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Surprise, surprise, no real bidding. They could have saved a bunch of time and headaches and just simply divided the spectrum evenly and sold it at the asking price.
Of course, then we don't what tea money was put up to be part of the auction.
- Discussion 7 : 16/10/2012 at 06:18 PM
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Price Collusion in the Land of Smiles? How shocking! LMAO
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