Thai telecoms regulator the National Telecommunications Commission has nixed the 3G auction process due to have started today.
Last week, the process was filibustered by a move from state-run CAT Telecom who applied to the Supreme Administrative Court to…
Thai telecoms regulator the National Telecommunications Commission has nixed the 3G auction process due to have started today.
Last week, the process was filibustered by a move from state-run CAT Telecom who applied to the Supreme Administrative Court to stop the process. CAT Telecom claimed that the NTC did not have the authority to award licences, as it itself was undergoing a process of change as Thailand tries to create a catch-all media regulator, the National Broadcasting and Telecommunications Commission, which will replace the NCT.
The chairman of the NCT, Colonel Natee Sukonratm, tried to overturn the injunction, but this was rejected by the SAC.
The case was due to be heard on the same day as the auction started. As a result, the NTC decided that it could not start the auction until the outcome of the case was known.
There were three telcos in the bidding, AIS, DTAC and True Move.
Thailand’s Prime Minister, Abhisit Vejjajiva said that his government would push the required telecoms laws as quickly as possible during the current parliamentary session. However, even if the law is passed quickly, it could still take until early next year to appoint the board of the National Broadcasting and Telecommunications Commission (NBTC) and let the auction proceed again.
Shares in Thai telecoms stocks rose sharply in recent months on expectations that the sector would benefit from the long-delayed 3G licensing, which should lead to lower regulatory costs for operators.
Under existing concessions, operators pay about 25-30% of their revenue to state-owned companies like TOT and CAT Telecom. This would compare to 6% under the new 3G concessions to be awarded.
