Greed is good

Giveaway. Getaway. Got away. All is well in Thailand. The rich get richer. The poor get tips. The middle class click "like".

Published: 18/10/2012 at 08:49 AM
Writer: Voranai Vanijaka

In the immortal words of Gordon Gecko (Oliver Stone’s 1987 film, Wall Street), "Greed, for lack of a better word, is good. Greed is right. Greed works. Greed clarifies, cuts through and captures the essence of the evolutionary spirit."

So do not knock the 3G auction by the National Broadcasting and Telecommunications Commission (NBTC) that saw the kingdom’s mobile triumvirate – Advanced Info Service (AIS), Dtac and TrueMove – all smiling and shaking hands, having each won their maximum quota of 15MHz of spectrum.

Sure, critics have called it a cheap and ridiculous auction. Of course, they say there was no competition, but a complicit collusion between big business oligopoly and the NBTC to rape taxpayers’ money.

Yes, the auction fetched 41.625 billion baht overall, only 1.125 billion or 2.78% above the reserve price.

But hey, this isn’t Sotheby’s, okay?

Of course, the total loss for taxpayers is over 16.3 billion baht, based on price recommendations made by Chulalongkorn University economists hired by the NBTC to consider benchmark prices.

But hey, the NBTC isn’t some bargain-savvy street vendor, all right?

Indeed, what did we expect when the auction involves an old technology on the edge of mortality in its life cycle, while other countries are already going 4G and 5G? It’s chocolate fudge no matter which way we look at it.

A study by the National Institute of Development Administration (NIDA) showed Thailand's GDP would have benefited from 3G network investments worth US$7.74 billion to $12.45 billion from 2011-14 if the technology had been adopted in 2010, the date of the last scrapped auction. The 3G delay caused economic losses of between $4.12 billion and $4.62 billion the past two years.

But why be negative and focus on the past? What's done is done, at least the 3G auction is now done. More delay is more loss.

Look on the bright side, the banking sector licks its lips, expecting tens of billions of baht in new investment by mobile operators. Relevant businesses rub their hands, looking at some 120 billion baht in infrastructure investment projected for the mobile phone sector over the next three years.

It will be a boom. Perhaps not a big boom, but a boom nonetheless – and if it’s a boom, then everyone wins.

Look at the big picture. The poor are getting their share of the cake in populist policies such as the 300 baht minimum wage and the rice pledging scheme. What to do with that 15,000 baht per tonne of white rice? New motorbike and 3G phone, that’s what.

The capitalist elite's stranglehold on the Thai economy tightens, courtesy of government agencies that give the biggest bang for their baht. Forget feudal Thailand, the capitalists are on their Ferrari horses, yelping, ‘’Tally-ho, boys! Charge! Charge! But watch out for the tanks!’’

And since the middle class works for the capitalist elite anyway, we can expect bonuses and pay raises from this super mini boom, oh joy. We can also log-on easier to click like, upload instagram and update location and stuff, oh double joy.

Small and medium enterprises (SMEs) can feast on the leftover crumbs and be proud of practicing sufficiency economy, rather than greedy capitalism. It’s the noble Thai way.

You see, it is all a matter of perspective. If we choose to be positive, then we can see that everybody wins.

Now the NBTC did not demand obligations from or impose repercussions on the big three triumvirate to provide affordable and high quality service to consumers. But that’s okay. Big business can’t get bigger without friendly help from government agencies.

And since Thailand is all about freedom and democracy the NBTC is on the record as saying it expects free market mechanisms to encourage clean and fair competition among the big three anyway, for the benefit of consumers.

Just like the free and fair competition in the auction bids on Tuesday, we should expect oligopoly capitalists to do right by the consumers without government imposed conditions. Yes, we should believe what we are told and do as we are told. Don’t question things; it’s not the Thai way.

Of course, critics lament that consumers will end up paying overprice for the privilege of using an outdated technology with questionable service quality. But again, let’s not dwell on negativity, but instead focus on the big picture.

The lord gives tips to the poor in populist policies and riches to the rich in strengthening the oligarchy on the cheap. Meanwhile, the middle class will consume anyway and can always hope for bonuses and pay raises. It’s the circle of capitalistic life.

We should be proud that in a poor, peasant, agricultural, developing country, we can boast so many in Forbes magazine’s richest in the world. Yes, we should be proud of our social betters. We are Thais. We respect the hierarchy.

Like as not, if we are to consider the words of Gordon Gecko, we are simply adopting the American way:

"The richest 1% of this country owns half our country’s wealth, five trillion dollars. One third of that comes from hard work, two thirds comes from inheritance, interest on interest accumulating to widows and idiot sons – and what I do, stock and real estate speculation. It’s bullshit. You got 90% of the American public out there with little or no net worth."

Greed and hierarchy, the harmonious marriage of eastern and western values run amok. It’s beautiful stuff.

Another upside is, we don’t have to worry about 4G or 5G anytime soon, because the oligopoly must milk 3G for all its worth first. Therefore, as an added bonus, we don’t have to endure the annoyance and frustration of another cheap and theatric auction scheme that is more of a giveaway rather than a free and fair competition.

So yes, at the end of it, everybody wins. The only loser – if we insist on being cynical – is perhaps the Kingdom of Thailand, as we will be stuck with a technology nearing the end of its life cycle over the years to come, while Laos, Cambodia and Vietnam are already moving on to 4G and 5G.

But who cares about Thailand. There’s no place for nationalism in the world of capitalism. Money has no flag, no boundaries and no musical anthem.

In 10 years’ time, we can auction for 4G, and everybody will win once again. In 50 years time, when Laos launches its space program, we will have figured out how to fix the electrical blackouts at Don Mueang Airport.

Greed may be good. But the combination of greed plus incompetence may not be so good, understatement of the year. Gordon Gecko would agree.

But we shouldn’t be so cynical.

Share your thoughts

Discussion 1 : 20/10/2012 at 11:51 PM: 41.65 Billion Baht for passe 3G technology....the ROW is on 4G LTE. I'd say the Government made a killing selling spectrum to those 3 dinosaurs. BTW I've got a brand new "used" car for sale, never driven, runs great. Call me.
Discussion 2 : 19/10/2012 at 12:43 PM: Hopefully we get more Voranai’s in Thailand we need them badly!
Discussion 3 : 19/10/2012 at 03:43 AM: Have to agree with Jacksprat Voranai is an excellent journalist but he'd get eaten for breakfast if he were to become an MP, they're are just too set in their archaic ways. Voranai your strengths are in your honest, straight to the point articles on the real issues concerning Thailand today. I just hope some of your articles are translated into Thai and read by aware younger Thais...these hopefully will be Thailand'salvation one day as all dinosaurs eventually die out given the right conditions...Keep em coming Voranai...
Discussion 4 : 18/10/2012 at 07:55 PM: Sorry I don’t understand the real problem here but I am willing to learn so please correct me when I am wrong. I see it this way: 1. What Thailand sold are just permissions to use specific frequencies. Thailand did not have to buy any of these frequencies so any money Thailand receives is profit. 2. All the mobile phone operators are businesses and they want to make money. So if they would pay a higher price at the auction they would have to charge a higher price to the users. Would we mobile users be better off if Thailand would have received double the money in the auction but we would pay double the rate?
Discussion 5 : 18/10/2012 at 07:45 PM: 'The poor are getting their share of the cake in populist policies such as the 300 baht minimum wage'. No, not yet. This policy is only law in a few provinces that are the more expensive places to live and barley covers the rise in cost of living.
Discussion 6 : 18/10/2012 at 07:05 PM: Greed is not good. The problem with irony is that it may backfire, and be misunderstood. It is possible for an article that utilises irony to be read as reinforcing opposite perspectives, rather than as educating or informing the reader. Greed is not good, and leads to delusion. Desire, on the other hand, can be categorised as either good, which we can call ‘aspiration’ (such as for an education), or bad (such as for a quick fix).
Discussion 7 : 18/10/2012 at 07:03 PM: Realistically, this is all that we foreigners can do - just laugh at the theatrical behaviour of the country's rich and corrupt. The Thais, however, should take it more seriously because they will suffer badly one day when the corrupt eat more earth, concrete, rice, steel than the edifice of Thailand can stand being taken from it.
Discussion 8 : 18/10/2012 at 07:00 PM: Khun Voranai entering politics? He wouldn't stand a chance. How many honest politicians have you seen in Thailand (or elsewhere)? He also is intelligent, has lived in the west and speaks excellent English. Those are some of the very things many people hate about Abhisit.
Discussion 9 : 18/10/2012 at 06:46 PM: Wasn't it DTAC - having outage after outage lasting for days, not just hours? I am surprised they were allowed to participate in the auction. Or, am I?
Discussion 10 : 18/10/2012 at 06:34 PM: Great article as always. Now about the "What to do with that 15,000 baht per tonne of white rice?",I have to make it clear that it simply isn't true. Having spoken to several rice farmers in the rural community,in which part of my family lives as rice farmers,the payment they recieve is between 10,000-12,000 baht pr.tonne. They have filed countless complaints with relevant authorities,protested and sought "audience" with leading PTP MP's,even the "PM". To no avail. They are,as usual,completely ignored by the "Champions of the Poor"...untill the next election.
Discussion 11 : 18/10/2012 at 04:47 PM: First thought that comes to mind; Our brother Voranai is too good a person to be a politician. Second thing that comes to mind about the analogy with butter and a French chef Discussion#8 Forget the butter, think Foie gras and truffles.
Discussion 12 : 18/10/2012 at 04:31 PM: Excellent as usual! I would have expected this on Sunday, you must have something better up your sleeve......
Discussion 13 : 18/10/2012 at 04:22 PM: I love this article. Well written as always.I am thankful to my parent to raise me as a mother bird raises her chicks..build the nest barely big enough for her chicks to grow. Excess is a waste. The bigger ,the faster, the greedier will ruin who embrace them .
Discussion 14 : 18/10/2012 at 04:03 PM: Khun Voranai Vanijaka for PM...
Discussion 15 : 18/10/2012 at 02:26 PM: @Asian Hand, Disc1: Agree! If Khun Voranai would be more pro-active and take the lead to initiate a movement towards ending the feudalistic, patronage and pro-elite Thailand society, this country will have a (better) future. While I am one of those that click "Like" now and then, you can count me in always - Khun Voranai! I have Thai friends, and friends of friends that think the same way as you and me.
Discussion 16 : 18/10/2012 at 02:18 PM: What is amazing is that in the wake of the world's financial collapse, Thailand's banks seem intent on repeating the exact same mistakes that not only brought the global banking system down, but brought Thailand's own banking system down in 1997. The greed of the banking system is encouraging the current unsustainable bubble in housing and credit. Meanwhile the government is pursuing one uncompetitive economic policy after another, at precisely the wrong time as global consumption falters, and more cost-effective options to Thailand grow to the immediate north, south, east and west of the nation. There are rough waters ahead.
Discussion 17 : 18/10/2012 at 01:44 PM: K. Voranai applies irony here like a French chef with a tub of butter. The only real winners are the big 3 and friends. Everybody else holds their breath and says a silent prayer for some implausible trickle down effect to take effect.
Discussion 18 : 18/10/2012 at 01:40 PM: I must agree with the other posts.Great reading.
Discussion 19 : 18/10/2012 at 01:34 PM: Very nice article, and I must say very brave that somebody has spoken openly & truthfully about the status quo in Thailand. Like you said .. lets get on with the show !!!
Discussion 20 : 18/10/2012 at 01:02 PM: lol, good piece.
Discussion 21 : 18/10/2012 at 12:49 PM: Any one remember how we all managed in the days when mobile telephones did exist? Well if one is to keep up with the incredible, idiotic, stressful fast pace of the developed world then get on the bus or one could feel left behind, I would say as a user of 3G in the UK the 3G thing is making me into a cyber junkie. Always forever news watching, Facebook addiction, Web Browsing. Does Thailand really need 3G and the negative social problems it will create. As most addictions need money to supply the high. from iPhone application.
Discussion 22 : 18/10/2012 at 12:25 PM: Love it! How true, the funniest thing I seen In the village is people pulling out i-phones. Whats the point of having an i-phone if you can't use it except to make a call with a 20 baht top up card. Maybe thats why introducing 3 G took years.
Discussion 23 : 18/10/2012 at 12:17 PM: Now this was a great read. Kudos
Discussion 24 : 18/10/2012 at 12:11 PM: Its time you stepped out of the hallowed halls of the Bangkok Post and ran for office. It is Thai's as yourself that need to step up, call a spade a spade and foster change. Do you have the courage?

Share your thoughts

More From Bangkokpost.com