3G auction: Thailand chose protectionism over competition

The relatively low prices achieved in the 3G auction seem to reflect protectionist government policy towards the telecoms industry going back over two decades, far more than any shortcomings in the terms and conditions of the auction itself. Foreign players with global expertise in spades have never been permitted to compete directly in the industry. 
The formation of the NBTC and the 3G auction should have been heralded as a belated way to right the wrongs of the past, which resulted in Thai mobile-phone users having to pay the highest prices in the world for handsets, combined with just about the worst possible service.
Instead, the NBTC chose to tighten the restrictions on foreign involvement even further, guaranteeing that no new players could enter the industry. It is clear that no other local companies have the necessary capital or expertise to compete with the incumbents. In fact it is doubtful that two of the three bidders would even have been able to pass a more rigorous substance-over-form test of their foreign ownership and domination, which would have left only one bidder.  
Protectionism equals lack of competition. You have to choose one or the other.
George Morgan
Bangkok