SPECTRUM LICENSING

Senator wants NTC's Natee probed over 'unrealistically low price'


A member of a key Senate committee has asked the National AntiCorruption Commission to investigate a member of the national telecom regulator for setting an unrealistically low price for 3G spectrum licences, citing that it would affect the national interest and favour private telecom operators.

 Senator Prasit Potasuton, chairman of the upper house's science, technology, communications and telecom committee, on Monday submitted a filing to the NACC for it to investigate Natee Sukonrat, a member of the National Telecommunications Commission and also the NTC's 3G licensingplan development committee chairman, for alleged malfeasance.

 Prasit argued that the NTC's startingbid price of Bt12.8 billion for a 3G2.1GHz spectrum licence was too low. He cited a study by the Thailand Development Research Institute, which said the appropriate price for the three available licences was as high as Bt330 billion, or Bt110 billion per licence.

 The NTC price would damage the national interest and benefit telecom operators, he claimed.

 Natee has often explained that the price is based on economic studies by NTC consultants and that it reflects the full spectrum price of each licence.

 The Senate committee last month asked the NTC, which will hold the licence auction in the fourth week of September, to change the startingbid price to Bt30 billion.

 In a related matter, the government might want to see the bill governing the formulation of the telecom and broadcasting watchdog being aborted in order to draw up a new bill that will address key issues in the telecom and broadcasting industries, a government source said yesterday.

 For example, the present bill to form the National Broadcasting and Telecommunications Commission (NBTC) requires those who want to use telecom and broadcasting spectra for commercial use to obtain them via the auction method only.

 It also forbids the transfer of telecom spectrum ownership rights. This raises the question of whether 3G licence holders can allow any firms to use their spectra to provide 3G service on a retail basis. The NTC's 3G spectrum licensing plan promotes the offering of such a retail 3G service.

 The source added that the Senate and the House of Representatives would not debate these issues, but would focus solely on 23 issues when they vet the bill.

 Recently, PM's Office Minister Ongart Klampaiboon said the two chambers would set up a joint committee to debate the 23 issues.

 The government wants to see the independent watchdog get off the ground to regulate vested interests in the broadcasting and telecom industries as soon as possible.

 The House of Representatives will convene today to consider a number of bills, but it is not expected to consider the NBTC bill until next week, given that it is 16th on its agenda.

 Senator Anant Worathitipong Anant said that if the bill were to be aborted, the broadcasting industry would have to wait even longer to be regulated by the NBTC.

 The parliamentary process requires the Senate to send its amended version of the NBTC bill to the House. If the House disagrees with some of the amendments, the chambers will set up a joint committee to vet the bill and send the results for the reconsideration of both houses.

 After that, if either chamber still disagrees with the amendments, the bill will be aborted. In this case, the government can submit the draft NBTC law approved by the House of Representatives for House approval and then use it as law. The other option is to develop a new NBTC draft law.

 Among the key issues to be debated in the NBTC bill are:

BULLET Clause 6, which determines the number of NBTC members at 15. Of the additional commissioners, two will be from the national security field. While the Senate supports the 15member number, the House favours its approved draft that was sent for Senate consideration, which determines the number at 11.

BULLET Clause 7, which determines the age of the commissioners at between 35 and 70. The House favours its draft, which determines their age at between 30 and 65.

BULLET Clause 48, which requires the NBTC to hold public hearings over a combined period of 30 days when conducting spectrumplan development, and that the plan should also give importance to issues of national security.

BULLET Clause 84, which requires TOT and CAT Telecom to transfer all concession revenue directly to the NBTC, which will pass the amount to the state coffers, after the NBTC law has been in effect for three years. The House version gives a grace period of only one year to both state agencies.

 

to the NBTC, which will pass the amount to the state coffer, after the NBTC law has been in effect for three years. The House version gave such grace period of only one year to both state agencies.

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