The military council currently ruling Thailand has postponed the auction of 4G licences by a year, a decision which could negatively impact local telcos, analysts say.
In a televised statement, the council reportedly said that the delay is to “ensure…
The military council currently ruling Thailand has postponed the auction of 4G licences by a year, a decision which could negatively impact local telcos, analysts say.
In a televised statement, the council reportedly said that the delay is to “ensure that things will go smoothly and transparently and that will help protect the public”.
The National Broadcasting and Telecoms Commission (NBTC) subsequently noted that the auction would take place in July, according to a Reuters report.
The country’s regulator was not immediately available for comment.
NBTC had planned to award spectrum in the 1,800 MHz band in August and frequencies in the 900 MHz at the end of year. However, the junta, which has been in power since a coup in May, recently requested the tender be put on ice. No timeframe had been disclosed at the time.
Although the top three operators – AIS, Telenor’s Dtac, and True Corp – already have frequencies in the 1,800 MHz band, Nomura believes the delay is not good news for the telcos.
In a note, Nomura analysts said: “Visibility on the spectrum roadmap is critical where the concessions for AIS and True on the 1,800 MHz have already ended and AIS’ 900 MHz licence is set to expire in 2015.”
They added: “Overall, we expect that this delay will continue to weigh on the stocks in the near term.”
Following news of the delay, AIS shares dropped almost 6% to Bt213 (US$6.63), while Dtac shares were down 4% to Bt108.5 (US$13.37) and True’s fell 3% to Bt12.4 (US$0.38).
