TRUE SEEKS CHANGE IN 3G AUCTION RULES

       CEO calls for level playing field for local and foreign operators
       True Corp chief executive officer Supachai Chearavanont has called for a review of some conditions of the auction of 2.1GHz-3G spectrum licences to create a level playing field for Thai and foreign telecom operators.
       One condition set by the National Telecommunications Commission (NTC) requires bid-winners to pay for the licences in full within 14 days of the auction.
       True is the parent of True Move, the only cellular operator without a foreign strategic partner.
       Advanced Info Service has teamed up with Singapore Telecom, while Norwegian telecom giant Telenor is partnering Total Access Communication.
       The NTC, which intends to auction four of the licences in December, will hold a public hearing on the auction guidelines on Sept 28. NTC chairman Choochart Phromprasid said late last week that some auction conditions could be changed after the hearing to lessen the burden on bidders.
       True simply cannot compete with the foreign operators in terms of funding, Supachai said.
       "Do you want us to be knocked out? I'll demand at the public hearing that some auction conditions be amended, and I'll fight until I'm knocked out," a laughing Supachai said.
       If the bid-winners have to spend a great deal to win the licences, they are likely to pass the burden on to customers, who will ultimately be the ones who suffer, he said.
       Aside from having had to spend considerable sums to develop the 3G network and service, the bid-winners will also have to set aside funds to keep up as the network evolves to incorporate 4G technology and beyond, Supachai said.
       A telecom industry source said it appears that True has no choice but to seek a partner in order to raise the necessary funds to bid for a 3G licence and develop the service.
       The cost of rolling out a 3G network has been estimated at about Bt20 billion a year for the first three years.
       True is in the process of deciding whether to bid for the licence first and seek a strategic partner later, or do it the other way round, Supachai said.
       The firm has reportedly been approached by several foreign telecom operators about entering into a strategic partnership.
       Agricultural conglomerate Charoen Pokphand Group owns about 58 per cent of True.
       The telecom operator is keen to bid for |the 15 MHz-bandwidth licence, Supachai said.
       The NTC will auction off four 3G licences; one with a bandwidth of 15 MHz and three with 10 MHz bandwidths.
       In a separate development, TOT spokesman Rathien Srimongkol said late last week that the firm's 3G network would be up and running before the NTC completes its auction process.
       TOT is upgrading its 1,900 MHz cellular network in greater Bangkok to incorporate 3G technology. The upgrade is scheduled to be finished in early December.
       TOT will also spend about Bt20 billion to roll out a new 3G network nationwide for lease to a telecom operator, which will provide retail 3G services. The project is awaiting Cabinet approval.
       The NTC has barred TOT from bidding for a 3G licence, as it has its own 1,900 MHz spectrum band, which is part of the 2.1 GHz spectrum.
       The issue of whether CAT Telecom can enter the bidding has yet to be resolved. The Finance Ministry owns 100 percent of both CAT and TOT, while TOT owns the 1,900 MHz spectrum.