Bangkok: Two major mobile phone companies are actively competing in a bidding process to acquire mobile frequency spectrums, aiming to enhance their network capabilities in the digital age. The National Broadcasting and Telecommunications Commission (NBTC) is supporting this initiative by encouraging the private sector to utilize new frequencies, upgrading 5G waves to support artificial intelligence, and urging the provision of network services in every sub-district within five years.
According to Thai News Agency, the NBTC office initiated the auction for telecommunications frequencies in the 850 MHz and 1500 MHz ranges, as well as the 2,100 MHz and 2,300 MHz high-frequency ranges used in mobile services. The auction began at 9:30 a.m., revealing that the two operators were uninterested in the lower 850 MHz and 1,500 MHz frequency ranges. Instead, both companies focused on the 2,100 MHz and 2,300 MHz frequency spectrums. The initial bid for the 2,100 MHz spectrum was 4.95 billion baht for 5 MHz sets, while the 2,300 MHz spectrum saw a bid of 3.1 billion baht from a minimum price point of 2.596 billion baht.
During the auction, community groups expressed concerns, protesting at the NBTC office to demand fair auction practices and reasonable pricing for public benefit. Dr. Prawit Leesathapornwong, a former NBTC commissioner, commented on the competitive atmosphere between the two operators. He noted that one operator aims to maintain its market share, having existing signal towers in urban areas. In contrast, the other is keen on expanding into both urban and rural markets, despite lacking existing infrastructure for the 2,300 MHz wave.
Dr. Prawit highlighted the necessity for the auction winner to invest in building comprehensive signal tower coverage across sub-districts, covering 90 percent of the area. This investment is crucial for market penetration and development. He likened the situation to an expressway, where fewer service frequencies would lead to congestion, emphasizing the importance of infrastructure investment for faster 5G development.
Dr. Prawit also addressed the absence of the 3,500 MHz wave from the auction, which was sought by AIS. He suggested that the current auction resembles a competition over limited resources, with no new frequencies introduced. The public benefit will depend on the auction costs; a significant reduction in costs could potentially lower service package prices for consumers. However, if prices remain similar to previous auctions, consumers may not see any additional benefits. Dr. Prawit concluded by emphasizing the need to monitor the auction outcome to assess its impact on consumers.