No excuses now for a cut-price 3G service

The country’s auction of 3G spectrum slots has finally come to an end, though questions of whether the National Broadcasting and Telecommunications Commission (NBTC) was over-generous in its terms for the three bidders are buzzing louder than ever. The end result of the auction, a combined bid of Bt41.65 billion for the nine slots, was just slightly higher than the reserve price of Bt40.5 billion.

But despite the questions surrounding the auction, most consumers have welcomed the news. Thailand has suffered a long delay in the launch of third-generation Internet. Our neighbours in the region have been able to enjoy its benefits for some time. Malaysians have been using 3G since 2004, Vietnamese since 2009 and Bruneians since 2005, while Singapore is on the brink of launching a 4G network.

The introduction of the advanced network will bring real benefits for Thailand in a world increasingly connected by the Internet. For instance, business transactions will become more convenient because 3G technology offers greater and more efficient access to banking solutions. It will boost interactive mobile communication, and also extend the reach of healthcare by providing more services to people in rural areas of the country. Clinics in remote locations will be able to wirelessly communicate with a network of modern healthcare facilities to provide their patients with a higher standard of care. 

The “big three” telecoms operators were quick to pounce on the available 3G slots, knowing that the universal appeal and benefits of the service meant big profits for its providers. In other countries, telecoms companies have engaged in furious bidding battles to win a share of the 3G bounty. 

In Thailand, however, the rights for 3G technology attracted little in the way of competitive bidding. The outcome of the bidding process had been a foregone conclusion ever since its terms and details were announced. The country’s “big three” operators duly shared the spoils among themselves after the NBTC announced it would hand each winner a maximum of three slots in the spectrum. The “lucky” winners were Advanced Info Service’s Advanced Wireless Network, Total Access Communication’s DTAC Network, and True Corp’s Real Future.

Now that the auction is over, the NBTC faces the challenge of ensuring that the best interests of 3G consumers are met. The telecoms regulator said it deliberately chose a low reserve price so that the 3G service providers would not have to pass the cost of high bids on to consumers. Thus the NBTC’s main task is to make sure that 3G operators do not take advantage of their customers or the government.

Its second task is to ensure that 3G Internet is extended right across the country, as promised. The operators have no excuse for providing a low-quality service for those that live outside the big cities. The three companies in question have benefited from low bidding fees, and they now have a duty to invest the resulting windfall into providing the best possible service for consumers.

The public, impatient to enjoy the overdue benefits of third-generation Internet, may be willing to turn a blind eye to the controversy surrounding the bidding price. But it will not tolerate companies failing to honour their promises to provide wide-ranging service at a fair price. 

The advent of this new technology has the potential to bridge the digital divide between sections of society and support development that will upgrade the living conditions of people. 

There is absolutely no doubt that the operators will make vast profits from this new technology. But they should be aware of the obligation that they have to its consumers. The NBTC must also play its part in ensuring that customers get the fair deal they have been promised.