InfoQuest (February 14, 2020) -- Thailand’s National Broadcasting and Telecommunications Commission (NBTC) has invited all bidders for 700 MHz, 2,600 MHz and 26 GHz frequency spectrums to attend the second mock auction and visit the auction room, said Mr. Thakon Tanthasit, secretary-general of NBTC on Friday.
In the auction on February 16, the NBTC will conduct clock auction for the first time, which will help save the time of auction. Auctions for four frequency spectrums, namely 700 MHz, 1,800 MHz, and 26 GHz have 19 and 27 blocks respectively. If the auction form stays unchanged, the time 2,600 MHz and 26 GHz, are planned for this auction. Especially, frequency spectrums of 2,600 MHz for auction would be too long.
In addition, the simultaneous ascending clock auction will allow the bids to be more flexible. Currently, many countries including the United States, Canada, Australia and the UK have abandoned the simultaneous multi-round auction (SMRA) for clock auction.
Auctions for frequency spectrums 700 MHz, 2,600 MHz and 26 GHz will proceed from low to high frequencies successively. The auction at each frequency spectrum consists of two stages: the allocation stage in which the clock auction is applied, and the assignment stage in which bid winners of the previous stage will submit first-price sealed-bid auction.
The secretary-general of the NBTC added that in the clock auction, bidders will propose the number of spectrums needed at the prices which increase successively each round, and after the first round of auction, bidders can confirm the number of spectrums needed at increased prices or the number of spectrums reduced. Moreover, when reducing the number of spectrums, bidders must indicate the prices they are willing to pay. The clock auction will be closed when the number of spectrums needed equals to the numbers to be sold. If in the first round the number of spectrums needed is no more than that of spectrums to be sold, the auction will be closed in the first round.
Mr. Thakon expected that the auction price of three 5G spectrums would be no less than 70 billion baht. Specifically, 3 licenses of the 700 MHz spectrum are for sale at the auction, which have 3 bidders, and the starting price is 8.792 billion baht per spectrum. As required, the first price markup is 440 million baht, so the total auction price of the 700 MHz spectrum is at least 26 billion baht.
The 2,600 MHz spectrum has 3 bidders, and 19 spectrum blocks in total. The starting price is 1.862 billion baht per spectrum. As required, each price markup is 930 million baht, so if all the blocks are sold at the auction, the total value is expected to be 38-39 billion baht.
The 26 GHz spectrum has 4 bidders, and 27 spectrum blocks. As expected, each bidder only needs one block, so only four blocks are needed in total, the total value of which is over 2 billion baht. The starting price is 423 million baht, and as required, the price markup is 22 million baht.
Mr. Thakon said that they did not expect bidders to offer too high prices, because they needed to consider more investment in the network, and should offer prices cautiously to avoid repeated mistakes. For example, in the auction of the 900 MHz spectrum, the bid-winning price is six times the starting price; in the auction of digital TV, the bid-winning price is more than three times the starting price.
“We do not believe that the auction will last overnight, because we won’t subsidize the auction fees, or perform the No.44 regulation, and enterprises need to make decisions all on their own, so they need to make cautious decisions. This is the auction for 5G, and maybe we will have the auction for 6G in the next two years, so we have to prepare more investment and provide our customers with affordable prices,” said Mr. Thakon.
Advanced Wireless Network Company Limited (AWN), a subsidiary of Advanced Info Service Public Company Limited, will participate in the auctions of 700 MHz, 2,600 MHz and 26 GHz spectrums.
True Move H Universal Communication Company Limited (TUC), a subsidiary of True Corporation Public Company Limited (TRUE), will participate in the auctions of 700 MHz, 2,600 MHz and 26 GHz spectrums.
CAT Telecom Public Company Limited (CAT) will participate in the auctions of 700 MHz and 2,600 MHz spectrums.
DTAC TriNet Company Limited (DTN), a subsidiary of DTAC TriNet Company Limited (DTN), and TOT Public Company Limited will participate in the auction of the 26 GHz spectrum.
Source: InfoQuest, by Saowalak Ouypron / Rachada / Wilawan, translated by Xinhua Silk Road.
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