ADVERTISEMENT

Thailand Eyes as Much as $2 Billion From 5G Spectrum Auction

Thailand Eyes as Much as $2 Billion From 5G Spectrum Auction

(Bloomberg) -- Follow Bloomberg on LINE messenger for all the business news and analysis you need.

Thailand could receive as much as 64 billion baht ($2.1 billion) in a spectrum auction next month, a bigger sum than it earlier expected, according to the nation’s telecommunications regulator.

Two state-owned companies, CAT Telecom Pcl and TOT Pcl, recently received government permission to take part in the auction, which is likely to make it more competitive, the regulator’s secretary general Takorn Tantasith said.

“However, the government doesn’t want too much money from the auction,” Takorn said in an interview Tuesday in his office in Bangkok. “It wants operators to invest in fifth-generation services, which can change the country.”

Thai officials are hopeful some of the spectrum available will kick-start speedier fifth-generation data services, bolstering the country’s economic outlook. Takorn expects permits worth more than $2 billion at reserve prices to be sold. Earlier reports indicated the government anticipated $1.8 billion.

He predicts firms will snap up as many as 28 of the 56 licenses in the Feb. 16 auction if between three and four operators take part. The 2,600 megahertz spectrum is thought to be the most coveted, he said, adding operators may not bid for 1,800 megahertz permits.

FrequenciesLicensesReserve Price (Baht)NBTC’s Expectation
700 MHz38.79bAll sold
1,800 MHz712.49bNone sold
2,600 MHz191.86bAll sold
26 GHz27423mFive to six sold

The National Broadcasting & Telecommunications Commission sees an economic benefit of 476 billion baht by 2022 from the fifth-generation roll-out, up from an estimated 177 billion baht this year. The latter is equivalent to about 1% of gross domestic product.

The top two service providers, Advanced Info Service Pcl and True Corp., are expected to take part, along with CAT Telecom. It’s unclear if Telenor ASA-backed carrier Total Access Communication Pcl will participate following a management change.

Takorn said Total Access may want to wait before embracing fifth-generation services.

Total Access’ Senior Vice President On-uma Rerkpattanapipat said the operator hasn’t made a decision yet on the auction, adding that there’s no link between that decision and the management change.

Carriers around the world have spent billions of dollars in auctions of airwaves for fifth-generation services, suggesting robust demand for faster speeds.

The Thai regulator expects a rapid uptake of the technology. “We hope it will help bridge the gap between urban and rural areas,” Takorn said.

To contact the reporter on this story: Suttinee Yuvejwattana in Bangkok at suttinee1@bloomberg.net

To contact the editors responsible for this story: Sunil Jagtiani at sjagtiani@bloomberg.net, Margo Towie

©2020 Bloomberg L.P.