Senate committee looks to block 3G licences

A Senate committee investigating corruption will next week petition the Office of the Ombudsman to ask the Administrative Court to launch a judicial review of the auction of 3G mobile phone service licences.

Paiboon Nititawan, a member of the Senate panel, said the petition will seek a court ruling on whether the National Broadcasting and Telecommunications Commission's (NBTC) telecom committee has the authority to endorse the bidding outcome.

The telecom committee, chaired by Settapong Malisuwan, approved the results of the 3G auction shortly after the bid took place.

The green light came amid criticism of a lack of competition in the bid and possible price collusion among the three bidders.

Mr Paiboon said the committee has reviewed the telecom committee's power and found it may have violated the charter and the frequency allocation legislation when it ratified the auction results.

He said the petition will be handed to the president of the Office of the Ombudsman on Monday.

Mr Paiboon said he hopes court intervention will lead to a new bid which would allow greater competition or revenue generation for the state.

"I'd like to see either of these things happen. The bidders may have to submit new prices or the design of the bidding may be changed to encourage others to compete," he said.

Rosana Tositrakul, also a member of the Senate committee on anti-corruption, said the panel has found a number of issues to look into after summoning the NBTC to testify on Thursday.

She said the panel will investigate those issues one by one and summon people involved to give further information about the bid.

The senator said one issue is that the auction date was announced at short notice.

The bidding was called two months after the announcement, leaving small operators unable to compete.

Ms Rosana said 17 firms had expressed an interest in bidding but only three companies took part.

Moreover, the bidders were asked to pay a deposit of 1.35 billion baht each.

She said the practice has led to allegations of bid fixing. The auction should have been announced one year in advance to guarantee competition, she said."With such short notice, small operators didn't have enough time to prepare a business plan for seeking loans. So it left only the existing three major players able to join," she said.

Ms Rosana also called on the NBTC to look into a report that the mobile phone service operators were prepared to increase 3G service fees despite the watchdog's plan to have the prices brought down by 15-20%.

NBTC secretary-general Thakorn Tantasit said yesterday a committee has been set up to investigate the three bidders for any signs of price collusion before licences are granted.

The seven-man panel, chaired by Suvijak Nakwatcharachai, secretary to the House of Representatives, has 15 days to wrap up the probe and submit the findings to the telecom committee.

The telecom panel has yet to issue operating licences to the three bidders.

The NBTC auctioned nine 15-year licences for 41.6 billion baht, just 1.1 billion above the reserve price, to the three bidders representing mobile operators Advanced Info Service (AIS), Total Access Communication (Dtac) and TrueMove.

Dtac Network yesterday handed over a cashier's cheque for almost 5.9 billion baht to pay part of the upfront fees to the NBTC.

Share your thoughts

Discussion 1 : 27/10/2012 at 03:37 PM
Just like the guy who passed the breathalyzer test. "Keep checking him, we'll get him one day"
Discussion 2 : 27/10/2012 at 11:40 AM
Short notice, only 15 or so years.
Discussion 3 : 27/10/2012 at 10:40 AM
I have to disagree with some comments this sort of sharp practice and miss management has to be curbed.To me it demonstrates how incapable of organising anything be it telecommunication or flood management this so called government is. You think this is bad what do you think will happen when the flood management bidding starts.
Discussion 4 : 27/10/2012 at 09:47 AM
D1: Musashi, were in the article or anywhere does it say these are the 'unelected' senators. Actually these are all valid points, and would be worth considering if Thailand wasn't so far behind on this. What gets me is that no one steps in and says; 'fine, all these objections are valid but any further delays are detrimental to the country, and let's settle once and for all, who actually has the constitutional authority to move this critical thing forward'.
Discussion 5 : 27/10/2012 at 07:53 AM
There were only 3 bidders as Thailand has stacked the rules against anybody else competing. Assumpng that they run the auction again and a new company wins. That company will have to build from scratch a brand new network of perhaps 10,000 cell sites or more across the whole of Thailand in less than 4 years plus get it up and running AND make a profit. That can never happen simply on time alone apart from the costs. Blame successive governments for not allowing free and fair competition in ALL sectors by both Thai and foreign investors.
Discussion 6 : 27/10/2012 at 07:16 AM
Another guy left out of the payoff scheme. Sometimes there just isn't enough money to go around.
Discussion 7 : 27/10/2012 at 05:45 AM
I can understand that this bunch of appointed (unelected) senators are working hard to justify the salaries that they are receiving. But couldn't they do something that helps the country to move forward with better telecoms infrastructure, rather than trying so hard to send us back to stone age?

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