The winners of the 900-megahertz spectrum auctions are unlikely to make their first payments of bidding fees this month as initially expected due to strict bank lending conditions.
The delay in payments will postpone their planned commercial launch of fourth-generation (4G) wireless broadband service upcountry, said Takorn Tantasith, secretary-general of the National Broadcasting and Telecommunications Commission (NBTC).
A source said Bangkok Bank was requiring Jasmine International, a 900MHz-licence winner, to submit a new borrowing plan following the exorbitant licence cost.
The bank's demand has added uncertainty to Jasmine, as the loan is needed to ensure the latter can smoothly enter the mobile service provider business.
"The request for a new borrowing plan came after Jasmine's winning bid was two or three times higher than forecast in its previous plan," the source said.
The two winners last week told the NBTC they planned to pay the first half or 8.04 billion baht of the estimated real spectrum value.
Earlier, JAS Mobile Broadband, Jasmine's 4G arm, announced it would roll out 4G service on the 900MHz spectrum in mid-January.
The delay gives Advanced Info Service Plc (AIS) more time to migrate its existing 2G customers on the 900MHz network to other networks.
AIS faces a shutdown of its 900MHz network three days after the winning bidders make their first payments.
The auction rules, published last year in the Royal Gazette, stipulate the switch-off date must be the day on which the winners of the 900MHz spectrum auctions receive their licences.
"The NBTC acknowledges the winners informed us they needed more time to resolve some loan-condition details with their lenders," Mr Takorn said.
The NBTC auctioned off two licences on the 900MHz spectrum last month, each containing 10MHz of bandwidth.
JAS Mobile Broadband won the first licence for 75.7 billion baht or 487% higher than the reserve price of 12.9 billion.
True Move H Universal Communication (TUC), a subsidiary of True Move, won the second licence for 76.3 billion baht or 491% above the reserve price.
JAS and TUC were given 90 days after the auction to make the first payment of 8.04 billion baht, half the estimated spectrum value, which is required by March 21.
An additional 25% of the spectrum value is to be paid this year, with the final 25% in 2017. The winners must then pay their remaining bid amounts in 2018.
Whenever the winners make their first payment, they must also post three bank guarantees for the remaining amounts.
Mr Takorn said both JAS and TUC might make their first payments in the first week of February.
Noppadol Dej-Udom, group chief financial officer at True Corporation, said TUC had no problem applying for a syndicated loan with 10 potential bank creditors but admitted two lenders needed to adjust some loan conditions due to regulations on single-lending limits.
"This is just a technical problem, not a big deal," Mr Noppadol said, adding that the issue was expected to be settled next week.
He said TUC did not need to hurry making a payment and rolling out 4G service on the 900MHz spectrum, as the company has time and True already provides 4G service. TUC will provide the service at an auspicious time.
Jasmine International chief executive Pete Bodharamik was not available for comment yesterday. Earlier he said JAS planned to have 15,000 base stations this year, accommodating 10 million 4G subscribers.