The share price of Advanced Info Service Public Company Limited (SET: ADVANC) and True Corporation Public Company Limited (SET: TRUE) rose on Tuesday following the report of NBTC lowering bidding prices for spectrum licenses.
The National Broadcasting and Telecommunications Commission (NBTC) has announced that a second public hearing on the draft NBTC announcement regarding the criteria and methods for granting spectrum licenses for international mobile telecommunications services in the frequency bands of 850 MHz, 1500 MHz, 1800 MHz, 2100 MHz, 2300 MHz, and 26 GHz will be held on April 1, 2025. This follows a resolution of the NBTC board to conduct the hearing within seven days after the first public hearing was held on February 6.
The upcoming hearing will involve adjustments to the reserve prices for the auction of several spectrum bands after private sector feedback suggesting that the previous auction prices were too high compared to the current economic conditions. Additionally, some board members expressed that the prices were too low, contending that the reserve prices for each frequency should not be lower than in past auctions.
The NBTC office has proposed reducing the auction prices as follows:
- The 850 MHz band will see its price reduced from 7.739.04 billion baht to 7.358.60 billion baht, a decrease of 380.44 million baht or 4.92%.
- The 1500 MHz band will see its price reduced from 1.057.49 billion baht to 969.03 million baht, a decrease of 88.46 million baht or 8.37%.
- The 1800 MHz band proposes three pricing options: Option 1 at 4.793.19 billion baht, a reduction of 2.488.96 billion baht or 34.18%; Option 2 at 3.617.37 billion baht, a reduction of 3.664.78 billion baht or 50.33%; and Option 3 at 12.418.06 billion baht, an increase of 5.135.91 billion baht.
- The 2100 MHz (FDD) band proposes new prices: Option 1 at 3.322.82 billion baht, a reduction of 647.50 million baht or 16.31%; Option 2 at 3.180.67 billion baht, a reduction of 789.65 million baht or 19.89%; and Option 3 at 4.611.42 billion baht, an increase of 641.1 million baht.
- The 2100 MHz (TDD) band will see its price reduced from 580.99 million baht to 449.04 million baht, a decrease of 131.95 million baht or 22.71%.
- The 2300 MHz band proposes three pricing options: Option 1 at 1.871.16 billion baht, a reduction of 89.92 million baht or 4.59%; Options 2 and 3 at 1.541.33 billion baht, a decrease of 419.75 million baht or 21.40%.
- The price for the 26 GHz band remains unchanged at 423 million baht.
Additionally, a potential auction of the 3500 MHz band, comprising 100 MHz, could see prices not lower than 5 billion baht for each frequency set. Some frequencies may be divided anew, splitting the telecommunications frequencies of National Telecom Public Company Limited (NT) into three bands: 850 MHz (2×15 MHz), 2100 MHz (2×15 MHz), and 2300 MHz (60 MHz), subject to a license expiration on August 3.
Currently unutilized bands include 1500 MHz and 26 GHz. Upon conclusion of the second hearing, the gathered data will be presented to the NBTC board, possibly delaying the auction from its previously scheduled date of May 17-18, 2025, to late May or early June 2025.
Previously, Mr. Somchai Lertsutiwong, CEO of ADVANC, stated that the starting auction prices should be reasonable, not based on outdated foreign references or auction prices from ten years ago. His perspective is that the NBTC’s goal should be to increase the use of 4G and 5G systems amongst consumers, moving away from the current widespread use of 2G and 3G. If private companies invest in networks, the NBTC should help bear the cost of equipment to encourage the public to shift to 4G and 5G, enhancing the country’s digital infrastructure.
On the other hand, Mr. Narupon Rattanasamaharn, Head of Regulatory & Government Relations Division at TRUE, expressed disagreement with the NBTC’s proposed “reserve prices” (old prices), citing past unsuccessful allocations and pricing higher than benchmarks, along with the payment terms. He pointed out that the current payment structure, requiring 50% in the first year and 25% in the subsequent two years, does not align with Thailand’s struggling economy. He suggested a payment plan spread over 10 installments of 10% each.
