Legal issues, CAT bid likely to put off spectrum auction

MONDAY, MARCH 18, 2013
Legal issues, CAT bid likely to put off spectrum auction

The auction of the 1,800MHz spectrum is expected to be delayed from this October to late next year due to the ongoing legal review of issues and the continued attempts of CAT Telecom to keep the spectrum.

 

Settapong Malisuwan, chairman of the telecom committee under the National Broadcasting and Telecommunications Commission (NBTC), said yesterday that his committee would consider at its meeting tomorrow forming the bidding committee to draw up the auction plan, including the tender method and spectrum price. 
The NBTC will reclaim 12.5MHz of bandwidth from the 1,800MHz spectrum of TrueMove and the same bandwidth from Digital Phone Co (DPC) when their concessions from CAT expire on September 15.
“If the committee approves setting up this 1,800MHz committee, we’ll immediately kick start the process of preparing the auction along with remedial measures for the customers of TrueMove and DPC after their concessions end,” he said. Last week he said the remedial measures are expected to be ready in June.
Suthiphon Thaveechaiyagarn, a member of the telecom committee, said the NBTC would first ask for CAT’s cooperation in returning the 1,800 MHz spectrum for reallocation via the auction. 
If that does not work, the NBTC might take legal action against CAT if it continues to use the spectrum beyond the end of the concessions. If CAT violates the laws and regulations for spectrum use, it will be liable to imprisonment of five years or a fine of Bt10 million.
This is not a legal threat. If the NBTC fails to enforce the law, it could risk a charge of dereliction of duty.
CAT’s attempt to seek the government’s help is like asking the government to violate the law and this will draw public criticism, he added.
The Frequency Allocation Act requires the NBTC to use only an auction to reassign expired frequencies.
In defending its claim to the spectra, CAT has cited the need to continue serving the customers who do not switch to other networks after the concessions expire. About 10 million of TrueMove’s customer base of 17 million users are expected to remain after September. CAT has also cited the need to serve the government’s plan to promote equal wireless access nationwide.
True Corp and Advanced Info Service are keen to bid for the 1,800MHz spectrum, which can be used to provide 4G wireless broadband services.