Steep starting bids for spectra in frame

WEDNESDAY, NOVEMBER 01, 2017
Steep starting bids for spectra in frame

THE NATIONAL Broadcasting and Telecommunications Commission (NBTC) plans to auction licences for the 900 megahertz and 1800MHz spectra in May next year, the regulator’s secretary-general, Takorn Tantasith, said.

According to a preliminary draft of the rules for the 900MHz auction, the NBTC will put up for sale one licence for the 900MHz spectrum, containing 5MHz bandwidth. The starting price is Bt37.988 billion. The licence term is 15 years.
If there is only one qualified participating bidder, the agency will extend the period for bid applications by a further 30 days from the end of the original application period. If there is still only one bidder, its bid will have to be raised.
The bidders for this licence have to place an auction guarantee of Bt1.9 billion and raise their bids by Bt76 million per round.
The winner will pay the first licence auction fee of Bt4.020 billion within 90 days of the auction, Bt2.010 billion each in the second and third years, with the rest in the fourth year.
If the winner fails to meet any of the conditions for the granting of licence, its auction guarantee will be seized and it will face fine of Bt5.699 billion.
The winner is obliged to finish the network rollout to cover 50 per cent of the country’s population within four years, before rising to 80 per cent over the following four years.
Under the preliminary draft of the rules for the 1800MHz auction, the NBTC will auction three licences, each containing 15MHz. The starting price is Bt37.457 billion. The licence term also is 15 years.
If there are only three participating qualified bidders, the NBTC will auction only two licences to ensure meaningful competition. The auction guarantee is Bt1.873 billion. The bidders have to raise their bids by Bt75 million per round.

Fee in three instalments 
The winners will pay the licence auction fee in three instalments; 50 per cent in the first instalment within 90 days, and 25 per cent each in the second and third instalments in the second and third years.
In the event that any of the winners fail to meet any of the licensing conditions, the auction guarantee of the offending bidder will be seized and a heavy fine of Bt5.619 billion may be imposed.
The winners are obliged to finish the network rollout to cover 40 per cent of the population within four years, and 50 per cent in the following four years.
Jas Mobile Broadband, whose 900MHz licence was forfeited by the NBTC after it failed to meet a licensing condition in the previous 900MHz auction after winning the licence, could take part in these new auctions as it had already paid the fine for its prior breach.
 Jas Mobile was one of the two winners of a 900MHz licence in the 2015 auction, but it failed to pay the first instalment of the licence fee by the deadline. 
The draft auction regulations of these 900MHz and 1800MHz spectra will be submitted to the NBTC telecom work-screening panel on November 6. 
The auction rules are expected to be finalised in January. If the selection of the new NBTC board is finished that month, the NBTC office will present these draft rules to the new board.
Currently, Total Access Communication (DTAC) uses these blocks of 900MHz and 1800MHz bands to provide cellular service under a conession from CAT Telecom.
The concession term will end after September 15, 2018.
DTAC is highly likely to enter this auction or lose competitiveness to Advanced Info Service and True Corp. 
Unlike its two rivals, DTAC failed to clinch a new spectrum licence at auctions of bandwidth on 1,800MHz and 900MHz in 2015.