The object of the exercise is to protect the public

Finally, the National Broadcasting and Telecommunications Commission (NBTC) board has announced that it will open bidding in the long-awaited auction of the 2.1GHz spectrum. The process will begin around the third week of October – in spite of criticism that it could lead to collusion among the three potential bidders.

The telecom regulatory body’s call for bidding for nine slots of the spectrum, which should pave the way to maximising 3G technologies, should be welcomed. Consumers should benefit from a wider range of more advanced services, with a greater network capacity. Faster data connectivity will enhance people’s ability to access information and utilise technology to advance their work and leisure activities.

Unfortunately, the National Telecommunications Commission (NTC) auction for the 2.1GHz spectrum had to be delayed after a string of legal wrangles, which interrupted the process of telecom infrastructure improvement. The NTC was the NBTC’s predecessor.

The NTC’s 2.1GHz auction was set for September 2010 but suspended at the last minute by a Central Administrative Court injunction after a request by CAT Telecom. This followed CAT’s court challenge to the NTC’s licensing authority.

This time around, the auction is expected to go ahead despite a warning by Thailand Development Research Institute vice president Somkiat Tangkitvanit. Somkiat earlier expressed concern that the revised draft auction terms – which allow each bidder to hold a maximum 15MHz of bandwidth, down from 20MHz in the original draft, out of the 45MHz available in the auction – might create an opportunity for collusion among three major bidders. 

Due to the absence of genuine competition in the bidding process, the final spectrum price will be only slightly higher than the reserve price, which will mean that state coffers will not benefit to the desired extent.

While Somkiat’s point is valid, there are others who support the NTC decision to give each bidder a maximum 15MHz instead of 20MHz. They defended the decision by saying that a 20MHz holding could lead to fiercer competition, resulting in a higher bidding price. If that is the case, the winning bidders could pass on the high costs of bidding to customers.

Advanced Info Service, Total Access Communication and True Corp will take part in the auction. And industry expects that the auction could end up with each bidder being allocated 15MHz of bandwidth equally. Despite the danger of eventual price collusion, this could benefit consumers because the operators should have no excuse for overcharging consumers for the new 3G service.

Upgrading infrastructure for information technology should proceed for the benefit of the public. Better infrastructure should be conducive for the general public and businesspeople to thrive.

Unfortunately, like almost everything that happens in Thailand, the government sector has been too slow to provide such basic infrastructure for the public. The uncertain political situation has led to unpredictable or changing policy decisions, especially regarding awards and contracts in the form of concessions or monopoly agreements.

The NBTC from now on should ensure that consumers are protected. The intention behind the new service is to provide people with affordable access to advanced infrastructure so they can take full advantage of the latest developments in information technology. 

Any further delay will hurt the public, especially now that the global business environment is closely connected.

The NBTC should ensure that whoever wins the bidding must give consumers the best service and best coverage. No single party should be permitted to reap unfair profits at the expense of consumers.

This auction should be seen as, and be conducted as, an exemplary case to show all investors that bidding, from now on, will be transparent, without any political or regulatory uncertainty, as has happened too often in the past.

The NBTC should take both precautionary and proactive measures to ensure fairness for consumers. Failing to do so will affect the credibility of the regulatory authorities, in whom the people have high hopes.