$200m reserve price proposed for 3G licence bidding

According to the final report of the consultant group led by InterConnect Communications, the reserve price for the licence of 10MHz from the 2.1GHz spectrum is about $200 million and for 15MHz of the same 2.1GHz spectrum is about $300 million.

It recommended three licences for 2.1MHz and one for 15MHz.

The National Telecommunications Commis-sion (NTC) has a total of 45MHz of the 2.1GHz spectrum available for licensing.

It will give the final report on the public hearing next month and finalise the licensing terms, such as the award method and number of operators, in August.

The 2.1GHz spectrum is offering third generation wireless broadband service that can deliver bandwidth-hungry content, such as video calls, to 3G mobile-phone users at blazing speeds.

Out of five licensing options, the consultant group suggested that an auction is the most effective and transparent method.

The other four options are first come, first served; random licence assignment; "beauty contest"; and a combination of auction and "beauty contest".

In the "beauty contest", telecom operators would vie to come up with the most attractive 3G business proposals.

Cellular operator Thai Mobile - the joint venture of TOT and CAT Telecom - has to comply with the NTC's upcoming 3G licensing terms and pay the same licence fee as those who win a 15MHz licence from the 2.1GHz spectrum.

The now defunct frequency allocation committee awarded the 1900MHz band, part of the 2.1GHz spectrum, to Thai Mobile before the inception of the NTC three years ago. The spectrum is being used to provide conventional cellular service.

But NTC member Sethaporn Cusripituk said the NTC could not answer right now what it should do if the new regulator, the National Broadcasting and Telecommunications Commission (NBTC), gets off the ground during the 3G licensing process.

The Information and Communications Technology Ministry will forward the amended frequency allocation law for Cabinet approval soon.

The amended law mandates the establish-ment of the NBTC to replace the NTC in regulating both the telecom and broadcasting industries.