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Five flag interest in Thai 3G auction

18 Aug 2010
00:00
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Five Thai operators, including the three main incumbents, have expressed an interest taking part in the coming 3G auctions.

AIS, DTAC and True Corp have each bought bid documents for the auction, which is to be held on September 28-29, Bangkock Postsaid. The other applicants are MVNOs Samart and Loxley.

Each of the three main operators bought two bid documents each – AIS for itself and its subsidiary AWN, DTAC for itself and unit DTAC Internet Service, and True for its two units True Move and SK Wireless – although only one operating company from each will be able to take part.

The government has set a reserve price for a 15-year license of 12.8 billion baht ($403.1 million). Operators will have until August 30 to submit bid proposals.

But the auction could face further delays because the terms of all three members of the NTC will expire next month, and the regulator is due to be replaced by the new National Broadcasting and Telecommunications Commission. This could leave the process open to legal challenge.

AIS has committed 50 billion baht to developing 3G services over the next three years.

MVNO Loxley said it was in talks with an Asian company to form a possible JV to bid for a license. The start-up investment of the JV would be at least 30 billion baht.

 

Thai equipment supplier Samart is considering following a similar path. The company is in talks with Malaysian partner Axiata and another Asian telco over forming a JV for the purpose, Samart president Watchai Vilailuck told the Post.

 

The venture would have initial funding of 20 billion baht and be at least 51% owned by Samart's MVNO unit Samart i-Mobile, he said.

 

But Watchai said the company would wait until the results of a feasibility study to determine whether the project would be worth its hefty price tag.

 

If the study gives a thumbs down, Samart will instead pour an extra 1 billion baht into developing i-Mobile's existing MVNO services, and look into launching new services on Axiata's APAC networks.

 

Samart i-Mobile currently offers 3G services over state-owned operator TOT's network. It has around 85,000 3G customers, and expects to hit 100,000 – the estimated number required to achieve profitability - next month.

MORE ARTICLES ON AIS, AXIATA, DTAC, LOXLEY, SAMART, SK WIRELESS, SPECTRUM AUCTION, THAILAND, TRUE MOVE

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