The National Broadcasting and Telecommunications Commission has finally set a timetable for the fourth-generation (4G) spectrum auctions this year.
The NBTC has also imposed the industry's first-ever mobile spectrum caps as a condition for the auctions as well as other bidding restrictions in a bid to foster competition for the spectrum allocations and encourage new competitors.
The development comes after the cabinet gave the green light to the NBTC last Saturday to proceed with the country's 4G spectrum auctions plans.
NBTC secretary-general Takorn Tantasith said the auction for the 1800-megahertz spectrum was scheduled for Nov 11, while the 900-MHz spectrum would be up for sale on Dec 15.
The regulator divided the 25-MHz bandwidth of the 1800-MHz spectrum into two slots or 12.5 MHz each and set a minimum bid of 11.6 billion baht for each.
The auctions of 20 MHz of bandwidth on the 900-MHz spectrum will also be divided into two slots, 10 MHz each, with minimum bids of 11.262 billion baht for the blocks.
"All four slots of 45 MHz of bandwidth will be sold for a minimum combined value of 42.9 billion baht," Mr Takorn said.
He said the reserve prices for 4G spectra were at 70% of the average valuation of the spectrum band, suggested by its consultant, the International Telecommunication Union (ITU).
"We're in discussions with the ITU about whether to calculate the reserve price at the full value of the spectrum," Mr Takorn said.
"A 100% valuation of the spectrum would lift the minimum combined bidding value to 65 billion baht."
The NBTC expects to issue licences for the 1800-MHz spectrum in December and the 900-MHz spectrum next January. Commercial 4G service could be rolled out by April 2016.
Mr Takorn said the NBTC was drafting a regulation limiting the amount of spectrum holdings of mobile companies, possibly restricting bandwidth per operator to 45 MHz. The rule is also aimed at promoting new entrants with access to a sufficient amount of spectrum resources.
However, the spectrum caps will apply only to frequencies that are generally in use. Operators holding spectra under concessions with less than five years left will be exempt.
Mr Takorn said the spectrum limits would be set to manage future auctions for other frequency ranges such as the 2300- and 2600-MHz spectra now owned by state agencies.
Total Access Communication (DTAC) owns the most bandwidth with 75 MHz on the 850-, 1800- and 2100-MHz spectra, followed by Advanced Info Service Plc at 32.5 MHz, TOT Plc at 30 MHz and True Move at 30 MHz.
An NBTC source said even though DTAC's bandwidth exceeded the limit, the company might not be affected since its 50-MHz band on the 1800-MHz spectrum has only three years remaining on the concession. Also, half of the 50-MHz band is unused.
Sigve Brekke, chief executive of Telenor Asia, the major shareholder in DTAC, said the three major mobile operators had only 15 MHz of bandwidth on the 2100-MHz spectrum under a licensing regime. The 50 MHz DTAC uses is under a concession contract with CAT Telecom to provide 2G mobile service.
"The spectrum bandwidth we use is under a build-transfer-operate agreement, which means we don't have our own spectrum," he said. "When our concession expires in 2018, DTAC must return the frequency to the NBTC."