3G auction draws Bt41.625bn bids
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Three bidders offer aggregate prices of Bt41.625 billion for the 2.1GHz spectrum licensing.
Advanced Info Service (AIS), Total Access Communication (Dtac) and True Move today joined the bidding for the nine slots. Each slot's reserve price is Bt4.5 billion.
Only two slots drew bids of Bt4.95 billion; one for Bt4.725 billion; and 6 for Bt4.5 billion.
In the first round, it turned out that bidders bid for 6 slots, but the prices did not move up from the reserve prices.
In the second round, six slots were bidded for, at slightly above the reserve price: 3 for Bt4.725 billion each and 3 for Bt4.5 billion each. Totally, this would raise Bt27.675 billion.
The ninth slot was bidded for in the seventh round, at the median price of Bt4.5 billion.
The number of slots bidded for increased to 8 in the third round. Aggregate bids were thus slightly raised from a total of BtBt27.675 billion in the second round to Bt37.125 billion in the third round. No change in aggregate bids in the fourth and fifth rounds.
Settapong Malisuwan, chairman of the National Broadcasting and Telecommunications Commission (NBTC)'s telecom committee, noted that this is a historical milestone for the Thai Ttelecom industry, as it transfers the concession era into licensing era.
The bidding today started with the registration during 8-9am. Then, bidders picked the draw for the bidding rooms and document containing usernames and passwords. The first-round bidding started at 10am, witnessed by Eun-Ju Kim, regional director of ITU Reginal Office for Asia and Pacific and representatives from the Auditor General's Office.
According to Settapong, in each round, bidders have 30 minutes to propose the prices, which must be raised by 5 per cent of the median price at Bt4.5 billion, or Bt225 million at a time. The bids will be evaluated by a computerised programme and the result will be known 10 minutes before the next round begins.
It turned out that each of the three rounds in the morning session took more than an hour.
Totally today, there will be 10-12 rounds or until 9pm.
Participants in the auction cannot leave the rooms until the auction is over, unless for toilets or emergency whereby they will be closely escorted by NBTC officers. Food and beverage is prepared in the room.
Settapong said that once the bidding for the desirable slots is over, the auction will move on to the selection for desirable frequencies. Top bidders of each slot are the first to pick the frequencies.
The auction results will be announced within 3 days and the licenses will be issued once bidders fulfil obligations within 90 days.
"NBTC has conducted the auction in discreet and legal manner, with the intention to turn the 2.1GHz spectrum into public use, for efficient and cheaper services. While revenue from the auction would go to the government, this auction will promote competition in the telecom industry, to ensure free and fair competition," Settapong said.
