Watchdog targets NBTC

A consumer watchdog has kicked off a campaign to oust members of the National Broadcasting and Telecommunications Commission (NBTC) following the regulator's approval Thursdayday of the 3G spectrum bid results.

Four out of five members of the telecom committee voted to ratify the bid outcome. Prawit Leesathapornwongsa, who has been opposed to the bidding structure, did not.

The three bid winners could secure licences within a week after paying half of the bid prices to the NBTC, which are due within 90 days.

The 15-year licences will be issued within seven days from payment.

The three bidders, Advanced Info Service's (AIS) Advanced Wireless Network; DTAC Network of Total Access Communication (Dtac); and True Corp's Real Future, each won their maximum quota of 15MHz of spectrum.

AIS offered 14.625 billion baht while Dtac and TrueMove offered 13.5 billion baht each. The sale of the 2.1-gigahertz spectrum came in at only 2.78% above the reserve price.

Telecom committee chairman, Settapong Malisuwan, spent more than three hours defending the auction's structure, terms and conditions before the vote was cast. The meeting was broadcast live to journalists.

At one point, Dr Prawit called the broadcasting a bad idea because sensitive issues had not been settled.

Col Settapong defended the broadcast, saying it was to ensure reporters got the facts straight.

Gen Sukit Karmasundara and Prasert Silpipat staged a brief walkout after Dr Prawit repeatedly raised concerns about the bidding's revised structure.

He was opposed to the revised design, which lowered the spectrum cap from 20MHz to 15MHz without increasing the reserve price.

The bidding design failed to maximise competition among the bidders who ended up paying only for the garnered slots plus low annual licence fees, Dr Prawit said.

Under the current concession contracts, the three operators were bound by the revenue-sharing system in which they would set aside about 25-30% of their income to the state.

Mr Prasert said it is time to move on, especially now that the bidding has been completed.

The broadcast was suspended for five minutes when Dr Prawit asked for the log files containing data from the auction.

Col Settapong then decided to call for a vote in which the four members ratified the bid result.

The NBTC will issue certificates to the three winners today. The regulator will hand over the money to state coffers as soon as possible, after deducting 20 million baht for the actual cost of the auction.

As the endorsement went ahead as expected, a group of people led by Sirisak Siriporn-udomsilp, a lecturer at Khon Kaen University, lodged a petition with Senate Speaker Nikom Wairatpanich seeking the removal of all 11 members of the NBTC. The petition was signed by 57,904 people.

Mr Sirisak said the NBTC members might have violated Article 11 of the Price Collusion Act of 2009 and Section 47 of the constitution which requires the NBTC to act in consumers' interests.

The watchdog might have also committed a serious breach of ethical standards in their handling of the 3G bid.

Mr Nikom said the Senate would take some time to verify the names before forwarding it to the National Anti-Corruption Commission.

In a related development, the Administrative Court yesterday threw out two petitions against the NBTC over its handling of the 3G auction.

The first petition, lodged by the Consumer Rights Protection Association (CRPA), sought disqualification of DTAC Network from the bidding on the grounds that the firm is allegedly a foreign-dominated firm.

The court dismissed the lawsuit stating that the association was not a damaged party. Moreover, its concern about foreigners' control over the frequency was mere speculation.

The court threw out the other petition, lodged by Adm Chai Suwanpharp, calling it invalid.

The complainant said that as a "creditor" the NBTC might not be able to fully protect consumers. The court noted that the NBTC is not a creditor and the bidders are not its debtors.

Share your thoughts

Discussion 1 : 19/10/2012 at 10:51 AM
I just hope the contract had anti monoply stipulations. I'd rather like to see the 730-812Mhz Repurposed and used for mobile communications.
Discussion 2 : 19/10/2012 at 10:16 AM
Take note, 5G is under study and likely soon. Can we inform anybody in power here ? Is there any point ? Jeez, they really bring out the negativity in us....
Discussion 3 : 19/10/2012 at 09:59 AM
It's expensive to have so many generals in the NBTC and do not forget.Settapong Malisuwan, spent more than three hours defending the auction's structure. 20 million should be just enough to cover the cost.Maybe interest for 5years delay included?
Discussion 4 : 19/10/2012 at 08:25 AM
America managed to get a man on the moon. Thailand has managed to get 3G. Both are amazing achievements.
Discussion 5 : 19/10/2012 at 07:37 AM
Why would anyone pay top price for redundant technology?
Discussion 6 : 19/10/2012 at 07:24 AM
Never mind that the customers want 3G. Never mind that in the last 5 years there would have been more government revenue. Never mind that the protestors have had a long time to protest before the auction. Never mind that if these dinosaurs keep Thailand back in the last century. Never mind that Thailand maybe the last country in the world to run 3G. Never mind that ALL of the countries in ASEAN are on 3G and some are on 4G. Poor Thailand, doomed by naysayers for peanut money.
Discussion 7 : 19/10/2012 at 07:17 AM
"AIS offered 14.625 billion baht while Dtac and TrueMove offered 13.5 billion baht each" that makes a total of 41.625 billion. Fine. And now tell me why would this funny auction have cost 20 million? ("The regulator will hand over the money to state coffers as soon as possible, after deducting 20 million baht for the actual cost of the auction.") 20 million for what? The room rent, the ariconditioning?
Discussion 8 : 19/10/2012 at 05:45 AM
Technology is not a concern, whatsoever. In Thailand, making money is the main concern. So as long as the RIGHT people make money, who cares about a trivia issue of technology. Precise, the Big Three can now enjoy buying all cheap 3G equipment from those 4G-Ready countries so that they can recover some of the Tea Money that they paid before and after the bidding. Isn't that a fair deal, yes?
Discussion 9 : 19/10/2012 at 04:39 AM
Well said undertaker
Discussion 10 : 19/10/2012 at 04:21 AM
Put what over? Its like buying a old model of a car when a new model has been introduced the price is reduced. No way you going to get big money now this is 3G the industry world wide is moving to 4G and here still fighting over 3G The price was OK since your were 5 years late getting into the game.

Back to top

More From Bangkokpost.com