More setbacks for 3G bid
Ministers want all legal questions cleared
- Published: 5/11/2009 at 12:00 AM
- Newspaper section: Business
The government on Wednesday further set back plans to auction 3G licences and told TOT Plc to start again with its costly plan for its mobile broadband service.
TOT has joined with A.R. Information & Publication Co to offer third-generation mobile network tests at the Commart/Comtech Thailand exhibition, which will be held from today until Sunday at the Queen Sirikit National Convention Center. SURAPOL PROMSAKA NA SAKOLNAKORN
Economic ministers told the National Telecommunications Commission that it must resolve all legal questions about its authority to grant 3G licences before calling an auction. The NTC had hoped to call bids next month but an official acknowledged last week that a February date now looked more likely.
The ministers also told TOT that its 21-billion-baht nationwide 3G project would have to wait pending clarity on some points from the NTC.
The decision came even as TOT announced that it would test-launch 3G services for the first time in Thailand at Commart & Comtech Thailand 2009, a major IT fair being held from today to Sunday at the Queen Sirikit National Convention Center.
Deputy Prime Minister Korbsak Sabhavasu said Prime Minister Abhisit Vejjajiva advised the commission to discuss all legal aspects regarding its 3G licensing authority with the Council of State. If there was any problem, the government would invite the council to clarify its position at the next meeting of the economic ministers, he quoted the premier as saying.
Mr Abhisit was concerned over the status of existing telecom concessions and revenue losses for state telecom enterprises if customers moved to new 3G businesses, he said.
The economic ministers would prefer both TOT and CAT Telecom to try to end their concessions with private operators within next year through negotiations, said Mr Korbsak.
Existing concessions were seen as a reason to delay the auction, he said.
The Finance and Information and Communications Technology ministers are expected to propose a solution within two weeks.
Mr Korbsak said that the Council of State ruled the 3G auction was the sole authority of the yet-to-be established National Broadcasting and Telecommunications Commission, as stipulated by the 2007 Constitution. But it would take until the end of 2010 for the NBCT to be formed.
Under the existing concessions, TOT and CAT earn 39.4 billion baht per year in revenue-sharing payments from private operators, the bulk of it coming from the three main cellular companies, AIS, DTAC and True Move.
TOT president Varut Suvakorn said the ministers wanted to see much clearer detail on the impact on TOT and CAT from the 3G auction, the status of foreign investors in a 3G auction, whether state telecoms enterprises could take part in the auction and the impact of customer migration.
TOT had to adjust its 3G business plan, loan guarantees and marketing, he said.
These were not major obstacles for TOT to overcome. While the review would result in delays, it would have taken longer if the state enterprise were to call its own 3G bids under its initial investment plan of 29 billion baht, since cut to 21 billion by the cabinet, he said.
Mr Varut said he wanted people to visit Commart and witness the 3G tests.
He said the services that would be demonstrated included video calling and mobile broadband at a peak rate of up to 7.2 Mbps.
He said he was confident that Thailand would soon have multimedia services when the official launch took place.
About the author
- Writer: Komsan Tortermvasana & Chatrudee Theparat
