Spectrum-cap clause puzzles bidders


Operators planning to bid for 3G licences are complaining that the clause on the spectrum cap in the 3G-2.1GHz licensing plan is still unclear and presents uncertainties.

 

Total Access Communication (DTAC) recently wrote to the National Telecommunications Commission (NTC) saying that this clause only presented new risks for operators.

It said the NTC could not guarantee that DTAC's concession owner, CAT Telecom, would return the 2G spectra once the operator obtained the 3G licence. The letter explained that if DTAC did give the 2G spectra back to CAT, and if CAT gave it back to DTAC, the process might have to go through a committee founded under Section 22 of the Public-Private Joint Venture Act, which could take a considerable amount of time.

Tore Johnsen, DTAC's chief executive officer, said yesterday that the company would wait for the final licensing draft to be published in the Royal Gazette before it decides on whether to bid for the 3G licence. Johnsen was speaking at a meeting the NTC had called to explain the clause yesterday.

The clause requires telecom operators to gradually return the 2G spectra to their state concessionaires if they clinch a 3G deal. The NTC is expected to publish its final licensing plan in the Royal Gazette this month and auction the licences in September.

TRANSFER REQUIREMENT

Recently Thana Thienachariya, head of DTAC's corporate affairs and strategy, said the firm might not bid for 3G licences because the 2G-transfer requirement added uncertainty to its business.

True Corp vice chairman Athueck Asavanand yesterday recommended that the NTC hold a public hearing on the clause. He said he was concerned the 3G auction would be further delayed if it was legally challenged about including a clause in the draft without there being a public hearing about it.

Wichian Mektrakarn, chief executive of Advanced Info Service, said his firm still had not made a final decision on whether it would want to bid.

Initially, the watchdog's draft said only telecom operators winning 3G licences would have to return their 2G spectra back to TOT or CAT once their concessions ended. However, after a public hearing last month, the NTC amended the draft, and now requires operators who win the licences to return 2G spectra back to TOT or CAT in areas where they launch the 3G service. Apparently, the NTC does not want them to hold too many spectra.

NTC commissioner Natee Sukonrat has said several times before that their 2G service would not be affected, because once the spectra have been handed over to TOT or CAT, both agencies are required by their concession contract to return them to the operators. However, the state agencies might only give them the bandwidth needed and keep the remainder for other uses.






Privacy Policy (c) 2007 www.nationmultimedia.com Thailand

1854 Bangna-Trat Road, Bangna, Bangkok 10260 Thailand.

Tel 66-2-338-3000(Call Center), 66-2-338-3333, Fax 66-2-338-3334 ,E-mail: customer@nationgroup.com

Operation Hours : Monday to Saturday at 8.00 am. to 5.00 pm and Sunday at 8.00 am. to 12.00 am.