Five regional mobile phone operators have shown interest in joining CAT Telecom to bid for a 3G mobile broadband licence from the National Telecommunications Commission (NTC).
CAT Telecom president Jirayuth Roongsrithong did not name the operators but said they had overseas experience and could compete with the two local mobile market leaders and their financially strong foreign shareholders.
True Corp, the third-ranked mobile operator, and some government officials have complained that the current 3G bid terms could favour top-ranked Advanced Info Service and DTAC, which have Temasek of Singapore and Telenor of Norway respectively as major foreign shareholders.
Mr Jirayuth said CAT has yet to shortlist operators but would start talking in detail with them to be ready if the 3G auction is held in December as the NTC plans.
The Asian operators believed 3G licences in Thailand would not be very expensive and the price would not deter them from bidding, he added.
He said CAT was determined to win one of the four licences on offer."If we lose the bid, it may become a crisis for CAT in the future," he said.
CAT and its state sibling, TOT Plc,rely on revenue-sharing payments from private operators under existing concessions. 3G services would not have the same concession structure.
CAT currently has only two 10 MHz bandwidth slots to provide its CDMA mobile service and would need more to offer 3G and other more advanced technologies in the future, in his view.
Mr Jirayuth said the state enterprise and its foreign partners should emerge as strong contenders since CAT has a CDMA network in 51 provinces and plans to buy out partner Hutchison to gain full control of the Hutch CDMA network in the 25 central provinces.
The two parties have signed a memorandum of understanding and a deal should be concluded by the end of this year, he said.
As well, CAT also owns the 800 MHz spectrum used by DTAC and 1800 MHz used by True Move.
Tuesday, October 20, 2009
Thursday, October 15, 2009
CPB asked to protect mobile phone users
The Council of Telecommunication Consumers has lodged a complaint with the Consumer Protection Board, asking it to list mobile phone services as a controlled business.
The council's chairman, Rerngchai Tansakul, yesterday asked the board to amend the 2000 CPB announcement on contracts to include mobile phone services on the list of businesses whose contracts are controlled by the CPB.
Mr Rerngchai said the move was needed to protect pre-paid mobile phone users who account for about 90% of mobile phone users nationwide, or 58 million people.
He also asked the CPB to set up a working panel to amend the announcement and to include members of his council on the team.
He said his council had conducted a survey of mobile phone users which found that providers had been taking advantage of prepaid mobile phone users.
The CPB could enact the CPB announcement against mobile phone service providers and launch civil and criminal lawsuits against them, Mr Rerngchai said.
The council's chairman, Rerngchai Tansakul, yesterday asked the board to amend the 2000 CPB announcement on contracts to include mobile phone services on the list of businesses whose contracts are controlled by the CPB.
Mr Rerngchai said the move was needed to protect pre-paid mobile phone users who account for about 90% of mobile phone users nationwide, or 58 million people.
He also asked the CPB to set up a working panel to amend the announcement and to include members of his council on the team.
He said his council had conducted a survey of mobile phone users which found that providers had been taking advantage of prepaid mobile phone users.
The CPB could enact the CPB announcement against mobile phone service providers and launch civil and criminal lawsuits against them, Mr Rerngchai said.
Tuesday, October 13, 2009
Vietnam rings in 3G
Telecommunications company Vinaphone has launched its third generation mobile phone service in Vietnam's biggest cities with plans to extend it nationwide.
Vinaphone's deputy director Ho Duc Thang says the service is currently available in 13 major cities and provinces and will be extended to the remaining 50 provinces over the next three years.
Earlier this year, military-run Viettel,Vinaphone and MobiFone - which are both run by Vietnam Post & Telecommunications - and a consortium of EVN Telecom and Hanoi Telecom were selected to offer 3G.
It's unclear when three others will offer their services.
Mobile phones are increasingly popular in Vietnam, a fast-growing Southeast Asian nation of 86 million.
Vinaphone's deputy director Ho Duc Thang says the service is currently available in 13 major cities and provinces and will be extended to the remaining 50 provinces over the next three years.
Earlier this year, military-run Viettel,Vinaphone and MobiFone - which are both run by Vietnam Post & Telecommunications - and a consortium of EVN Telecom and Hanoi Telecom were selected to offer 3G.
It's unclear when three others will offer their services.
Mobile phones are increasingly popular in Vietnam, a fast-growing Southeast Asian nation of 86 million.
Monday, October 12, 2009
NORWEGIAN TREND - SPOTTER LEARNS A KEY MANAGEMENT LESSON IN EARLY MONTHS
"Forget everything you know about Norwegian management and listen carefully" was among the advice offered to DTAC's chief strategy officer, Roar Wiik Andreassen, by Sigve Brekke, chief executive officer of Telenor Asia and the charismatic former leader of DTAC (Total Access Communication), when Andreassen arrived in Bangkok two-and-a-half years ago.
Still, Andreassen said he was very confused and felt like he was "doing business on the moon" during his initial months after shifting from Norway to Bangkok.
Though he thought he had prepared himself for working in a new culture and had received tips from his bosses, it was not a smooth adjustment.
"[It's the kind of thing] you have to experience by yourself," he said.
Then, after six months, Andreassen said he sat himself down and "started talking to people", getting their feedback and adjusted his working style to suit the local context.
"It's a very important lesson I have learnt. Taking your culture framework ... believing your culture and working style would work in Thailand: it doesn't," he said.
Andreassen came to Bangkok to serve as a senior vice president for Telenor Asia.
He formally assumed his current position as chief strategy officer for DTAC, Telenor's Thai subsidiary, in January, but he has been helping DTAC to prepare its third-generation (3G) network trial run since August.
The chief strategy officer position was a new post created by DTAC, as was the strategy and business development division he heads. The new post and the new division were created because, after experiencing good growth every year since 2001, Thailand's mobile-phone market has matured with the penetration rate reaching 100 per cent this year, he said.
"What do we do now ... with business changes, market is changing? We have succeed so far in 'voice' growth; what do we do with the 3G and other businesses including financial services, media businesses, Internet and broadband market, the new devices: should we buy some companies, should we cooperate ...?" said Andreassen, speaking of his main tasks.
Andreassen said his assignment was to pinpoint a long-term direction for DTAC that will enable Thailand's second-largest cellular-phone network operator to keep growing its business in the next two to four years, while retaining its strength as a flexible organisation. He admitted his task was challenging and that some opportunities he had identi-fied might never materialise, but added that it was a rewarding mission to work with such fun stuff and new devices, and to look at future trends.
Andreassen said the mobile Internet era was just beginning, and the potential for new mobile services to be offered over the Net and the 3G platform was incredibly vast.
Every company, including Apple and Nokia and many other IT and telecom firms, now wants to be involved, he said.
"It's easy to define the [mobile] market as matured, but I think we are only starting and the future will be about mobile Internet."
On the other hand, Andreassen admitted that the emergence of "Internet terminals" like the iPhone and cheap Internet calling services like Skype were a threat for telecom operators, and said it was difficult to predict who would survive thse new trends.
"[The] threat is coming closer and closer. But telecom operators will adjust or team up; they may take revenue sharing or partnership [with other companies]," he said.
Positive attitude
Andreassen agreed his task of spotting future trends and business opportunities required an optimistic outlook.
"What makes me happy is not the numbers or technologies, but working with people ... being with friends, family, my children. Exercise, making jokes, laughter. I like laughing and making jokes at work," he said.
While working very hard, being professional, taking responsibility and respecting one another were all vital, Andreassen said, he also believes that one should find a balance. So there's a lot of laughter and a lot of fun in the workplaces he runs.
Compared to working in Scandinavia, Andreassen said working in Thailand required fewer formal meetings and a closer follow-up on details, to get the same results. As a foreign executive one should be aware of cultural differences, and remember that lacking language skills means you can't know everything going on at the company, and could easily misunderstand something, he said.
Citing his own lessons learned during the first six months of working in Bangkok, Andreassen said he believes people can learn from their mistakes more than from their successes, and thus they should not be afraid of making mistakes.
"Let people make mistakes, because you progress and you learn something. Celebrate your success and learn from your mistakes. Don't punish people who make mistakes," he said.
Prior to joining Telenor Asia in Bangkok in early 2007, Andreassen was CEO of Telenor Real Estate, which had a turnover of 1.2 billion Norwegian kroner (Bt7 billion) and about 200 employees.
He began his work with the Telenor Group in 2001 as its finance director overseeing extensive organisational changes to the group's finance and accounting functions.
In 2004, he took the post of chief financial officer for Avinor Group, a company that operates 46 airports in Norway, before returning to take charge of Telenor Real Estate.
Andreassen graduated with a master's degree in Business and Economics in 1995 from the Norwegian School of Management, BI Sandvika, and a BA in Business and Economics from Harstad University College.
Before studying in Economics, he took a one-year course in philosophy studies at the University of Bergen in 1989.
Still, Andreassen said he was very confused and felt like he was "doing business on the moon" during his initial months after shifting from Norway to Bangkok.
Though he thought he had prepared himself for working in a new culture and had received tips from his bosses, it was not a smooth adjustment.
"[It's the kind of thing] you have to experience by yourself," he said.
Then, after six months, Andreassen said he sat himself down and "started talking to people", getting their feedback and adjusted his working style to suit the local context.
"It's a very important lesson I have learnt. Taking your culture framework ... believing your culture and working style would work in Thailand: it doesn't," he said.
Andreassen came to Bangkok to serve as a senior vice president for Telenor Asia.
He formally assumed his current position as chief strategy officer for DTAC, Telenor's Thai subsidiary, in January, but he has been helping DTAC to prepare its third-generation (3G) network trial run since August.
The chief strategy officer position was a new post created by DTAC, as was the strategy and business development division he heads. The new post and the new division were created because, after experiencing good growth every year since 2001, Thailand's mobile-phone market has matured with the penetration rate reaching 100 per cent this year, he said.
"What do we do now ... with business changes, market is changing? We have succeed so far in 'voice' growth; what do we do with the 3G and other businesses including financial services, media businesses, Internet and broadband market, the new devices: should we buy some companies, should we cooperate ...?" said Andreassen, speaking of his main tasks.
Andreassen said his assignment was to pinpoint a long-term direction for DTAC that will enable Thailand's second-largest cellular-phone network operator to keep growing its business in the next two to four years, while retaining its strength as a flexible organisation. He admitted his task was challenging and that some opportunities he had identi-fied might never materialise, but added that it was a rewarding mission to work with such fun stuff and new devices, and to look at future trends.
Andreassen said the mobile Internet era was just beginning, and the potential for new mobile services to be offered over the Net and the 3G platform was incredibly vast.
Every company, including Apple and Nokia and many other IT and telecom firms, now wants to be involved, he said.
"It's easy to define the [mobile] market as matured, but I think we are only starting and the future will be about mobile Internet."
On the other hand, Andreassen admitted that the emergence of "Internet terminals" like the iPhone and cheap Internet calling services like Skype were a threat for telecom operators, and said it was difficult to predict who would survive thse new trends.
"[The] threat is coming closer and closer. But telecom operators will adjust or team up; they may take revenue sharing or partnership [with other companies]," he said.
Positive attitude
Andreassen agreed his task of spotting future trends and business opportunities required an optimistic outlook.
"What makes me happy is not the numbers or technologies, but working with people ... being with friends, family, my children. Exercise, making jokes, laughter. I like laughing and making jokes at work," he said.
While working very hard, being professional, taking responsibility and respecting one another were all vital, Andreassen said, he also believes that one should find a balance. So there's a lot of laughter and a lot of fun in the workplaces he runs.
Compared to working in Scandinavia, Andreassen said working in Thailand required fewer formal meetings and a closer follow-up on details, to get the same results. As a foreign executive one should be aware of cultural differences, and remember that lacking language skills means you can't know everything going on at the company, and could easily misunderstand something, he said.
Citing his own lessons learned during the first six months of working in Bangkok, Andreassen said he believes people can learn from their mistakes more than from their successes, and thus they should not be afraid of making mistakes.
"Let people make mistakes, because you progress and you learn something. Celebrate your success and learn from your mistakes. Don't punish people who make mistakes," he said.
Prior to joining Telenor Asia in Bangkok in early 2007, Andreassen was CEO of Telenor Real Estate, which had a turnover of 1.2 billion Norwegian kroner (Bt7 billion) and about 200 employees.
He began his work with the Telenor Group in 2001 as its finance director overseeing extensive organisational changes to the group's finance and accounting functions.
In 2004, he took the post of chief financial officer for Avinor Group, a company that operates 46 airports in Norway, before returning to take charge of Telenor Real Estate.
Andreassen graduated with a master's degree in Business and Economics in 1995 from the Norwegian School of Management, BI Sandvika, and a BA in Business and Economics from Harstad University College.
Before studying in Economics, he took a one-year course in philosophy studies at the University of Bergen in 1989.
Sunday, October 11, 2009
TOT fixing pay phones
TOT Plc is spending 50 million baht to improve its pay telephones to accommodate new coins.
The state enterprise expects to modify 40,000 telephones across the country by early next year and 200,000 by yearend next year.
TOT president Varuth Suvakorn said the improvements became necessary after the Treasury Department minted new one-, two-, five- and 10-baht coins,changed the metal used in the one- and two-baht coins and changed the weight and density of the five-baht coin.
The new coins were released in August,and some TOT pay phones were unable to accommodate them.
The phone modifications are timeconsuming and cost 600 to 700 baht per phone, he said. Work is now under way and unmodified phones return new coins that are not recognised.
Mr Varuth said that although revenues from coin-operated phones had declined steadily, TOT continued to maintain the quality of the service.
TOT has about 200,000 public phones,with 30,000 of them card-operated.
The state enterprise expects to modify 40,000 telephones across the country by early next year and 200,000 by yearend next year.
TOT president Varuth Suvakorn said the improvements became necessary after the Treasury Department minted new one-, two-, five- and 10-baht coins,changed the metal used in the one- and two-baht coins and changed the weight and density of the five-baht coin.
The new coins were released in August,and some TOT pay phones were unable to accommodate them.
The phone modifications are timeconsuming and cost 600 to 700 baht per phone, he said. Work is now under way and unmodified phones return new coins that are not recognised.
Mr Varuth said that although revenues from coin-operated phones had declined steadily, TOT continued to maintain the quality of the service.
TOT has about 200,000 public phones,with 30,000 of them card-operated.
Friday, October 2, 2009
ICT MINISTER WANTS REVIEW OF 3G LICENCE AUCTION
Information and Communications Technology Minister Ranongruk Suwanchawee said yesterday she would ask the government to tell the national telecom watchdog to review the licence and auction conditions of the 3G-2.1GHz licences.
She cited concerns that the licensing would affect the revenues of TOT and CAT Telecom and would pave the way for foreign firms to gobble up the Thai telecom industry.
The minister has already ordered TOT and CAT to work out the possible affects on their revenues because of the licensing and send a proposal to her on Monday before she approaches Prime Minister Abhisit Vejjajiva on the matter.
Ranongruk said that she had learned from watching TNN channel of True Visions that the 3G licence auction by the National Telecommunications Commission (NTC) would give a chance to foreign firms to fully enter the Thai market.
The telecom law and Foreign Business Act each caps the foreign shareholding in Thai telecom operators at 49 per cent.
She added that TOT and CAT both have the potential to develop 3G services.
"We have to trust TOT. If we don't trust it, who will? Both TOT and CAT have contributed a great deal of revenue to the country. Why don't we give them a chance?" she said.
The NTC has set December 8 as the tentative date to auction four licences to use the 2.1GHz spectrum to develop the 3G wireless broadband service.
NTC chairman Choochart Phromprasid said he would apprise the premier on all matters on Monday. The NTC has invited the premier to give a speech on the role of national independent regulators in the country's development.
Choochart said that TOT had once asked the NTC to delay the auction plan but in the watchdog's view, the country lagged behind other countries in the 3G-service development.
He said that TOT and CAT were granted the joint ownership rights of the 1,900 MHz spectrum band - part of the 2.1GHz spectrum - since 2000 by the now defunct Frequency Allocation Panel. But they have not yet shown any progress in developing the service.
CAT has just finished transferring its joint ownership rights to TOT and allowed it to solely own the 1,900 MHz spectrum for developing the 3G service. Choochart added that the auction conditions do not allow firms with 100-per-cent foreign shareholding to bid for the licences but the conditions comply with the telecom law and the Foreign Business Act.
Ranongruk said she wondered why the auction prohibited state telecom agencies from bidding for the licences.
However, TOT chairman of the board, Teravuti Boonyasopon, said that TOT does not want to enter the bid but wants to see the auction take place after the end of the private telecom concession terms.
One 3G licence auction condition prohibits an owner of a 3G spectrum band from bidding for the licences. TOT owns the 1,900 MHz band, which is part of the 3G-2.1GHz spectrum.
NTC deputy secretary-general Suranan Wongvithayakamjorn said CAT is likely to be qualified to bid for the licences.
Earlier, the NTC was uncertain if CAT could bid for the licences, as the Finance Ministry owns 100 per cent shares in CAT and TOT, and TOT owns the 1,900 MHz.
CAT chief executive officer Jirayuth Rungsrithong said that CAT is interested in bidding for the licences.
Teravuti said TOT also wanted to see that those interested in providing the 3G service do so via the TOT's upcoming 3G networks only and on the mobile virtual network operator (MVNO) basis. An MVNO is a company without its own network but leases airtime of others to provide the cellular service.
TOT is upgrading its existing 1,900 MHz network in Bangkok and Greater Bangkok to 3G technology and will roll out the new 3G network nationwide.
Teravuti is concerned that once they get the 3G licences,. the telecom operators will move their existing subscribers from the state concessions to the 3G licences to save the huge regulatory cost. This will affect the revenue of TOT.
Currently the mobile-phoen service concessions have contributed an average 20 per cent of their revenue as concession fees. The total annual 3G licences cost it expected to account for only 6 per cent of revenues.
TOT owns the concession of Thailand's largest cellular operator Advanced Info Service, which has paid at least Bt10 billion of the concession fee a year to TOT.
Meanwhile, True, the parent company of True Visions, strongly opposed the 3G licence auction during the 3G public hearing on Monday, arguing that the method favours big telecom operators over smaller ones. True also aruged that the telecom industry is a matter of national security and hence the NTC should not award 3G licences to foreign firms.
She cited concerns that the licensing would affect the revenues of TOT and CAT Telecom and would pave the way for foreign firms to gobble up the Thai telecom industry.
The minister has already ordered TOT and CAT to work out the possible affects on their revenues because of the licensing and send a proposal to her on Monday before she approaches Prime Minister Abhisit Vejjajiva on the matter.
Ranongruk said that she had learned from watching TNN channel of True Visions that the 3G licence auction by the National Telecommunications Commission (NTC) would give a chance to foreign firms to fully enter the Thai market.
The telecom law and Foreign Business Act each caps the foreign shareholding in Thai telecom operators at 49 per cent.
She added that TOT and CAT both have the potential to develop 3G services.
"We have to trust TOT. If we don't trust it, who will? Both TOT and CAT have contributed a great deal of revenue to the country. Why don't we give them a chance?" she said.
The NTC has set December 8 as the tentative date to auction four licences to use the 2.1GHz spectrum to develop the 3G wireless broadband service.
NTC chairman Choochart Phromprasid said he would apprise the premier on all matters on Monday. The NTC has invited the premier to give a speech on the role of national independent regulators in the country's development.
Choochart said that TOT had once asked the NTC to delay the auction plan but in the watchdog's view, the country lagged behind other countries in the 3G-service development.
He said that TOT and CAT were granted the joint ownership rights of the 1,900 MHz spectrum band - part of the 2.1GHz spectrum - since 2000 by the now defunct Frequency Allocation Panel. But they have not yet shown any progress in developing the service.
CAT has just finished transferring its joint ownership rights to TOT and allowed it to solely own the 1,900 MHz spectrum for developing the 3G service. Choochart added that the auction conditions do not allow firms with 100-per-cent foreign shareholding to bid for the licences but the conditions comply with the telecom law and the Foreign Business Act.
Ranongruk said she wondered why the auction prohibited state telecom agencies from bidding for the licences.
However, TOT chairman of the board, Teravuti Boonyasopon, said that TOT does not want to enter the bid but wants to see the auction take place after the end of the private telecom concession terms.
One 3G licence auction condition prohibits an owner of a 3G spectrum band from bidding for the licences. TOT owns the 1,900 MHz band, which is part of the 3G-2.1GHz spectrum.
NTC deputy secretary-general Suranan Wongvithayakamjorn said CAT is likely to be qualified to bid for the licences.
Earlier, the NTC was uncertain if CAT could bid for the licences, as the Finance Ministry owns 100 per cent shares in CAT and TOT, and TOT owns the 1,900 MHz.
CAT chief executive officer Jirayuth Rungsrithong said that CAT is interested in bidding for the licences.
Teravuti said TOT also wanted to see that those interested in providing the 3G service do so via the TOT's upcoming 3G networks only and on the mobile virtual network operator (MVNO) basis. An MVNO is a company without its own network but leases airtime of others to provide the cellular service.
TOT is upgrading its existing 1,900 MHz network in Bangkok and Greater Bangkok to 3G technology and will roll out the new 3G network nationwide.
Teravuti is concerned that once they get the 3G licences,. the telecom operators will move their existing subscribers from the state concessions to the 3G licences to save the huge regulatory cost. This will affect the revenue of TOT.
Currently the mobile-phoen service concessions have contributed an average 20 per cent of their revenue as concession fees. The total annual 3G licences cost it expected to account for only 6 per cent of revenues.
TOT owns the concession of Thailand's largest cellular operator Advanced Info Service, which has paid at least Bt10 billion of the concession fee a year to TOT.
Meanwhile, True, the parent company of True Visions, strongly opposed the 3G licence auction during the 3G public hearing on Monday, arguing that the method favours big telecom operators over smaller ones. True also aruged that the telecom industry is a matter of national security and hence the NTC should not award 3G licences to foreign firms.
3G AUCTION MAY BE HELD ON DECEMBER 8
The national telecom regulator has set December 8 as the tentative date for the auction of four 3G-2.1GH licences, commissioner Sethaporn Cusripituck said yesterday.
A source at the National Telecommunica-tions Commission said the NTC expected to finalise the range of the reserve price for each licence at between US$150 million and $200 million (Bt5 billion-Bt6.7 billion).
The reserve price is the minimum amount the NTC expects to gain from each licence auction.
The watchdog will hold a board meeting next Wednesday to finalise the details, including the auction date, reserve price and bid starting price.
Sethaporn said the board would discuss whether it would reveal the reserve price, and whether the reserve price and the starting bid price should be the same.
The meeting will also see the watchdog finalising the contingency plan in the event of the number of those qualified to bid for the four licences being the same as or lower than the actual number of licences.
The NTC is concerned that if this were to be the case, there would be no genuine competition in the bidding.
Sethaporn said that if this were to happen, the NTC might not inform the qualified bidders of the number of bidders they are contending with. It might also surprise them by putting up fewer than four licences in the auction, in order to promote competition.
NTC secretary-general Suranan Wongvithayakamjorn said investors from India, Malaysia and Indonesia had asked the NTC for details of the auction, but he declined to specify their names.
NTC member Sudharma Yoonaidharma said he was opposed to holding the 3G licence auction so soon, as the national regulator had yet to come up with much crucial information for potential bidders.
He said that before the auction, the NTC should provide a comprehensive map of the details of all telecom networks in Thailand, so that those who are not current operators could clearly ascertain where they could roll out networks should they be awarded a licence.
He added that the NTC auction plan seemed to favour incumbent operators. Moreover, it seems the NTC's granting of the 3G licences has been publicly perceived as a way for the private telecom concession |holders to move customers from the concessions to the 3G licences in order to reduce their costs.
The private mobile-phone concession holders have to pay an average of 20 per cent of their revenue to one of the state concession owners, TOT and CAT Telecom. A 3G licence, however, is expected to cost them 6 per cent of their revenue per year.
Sudharma said he wanted to see Thai companies having a chance to win or share in the benefits from the 3G licences. He stressed that he did not mean True Corp, as True is a giant Thai telecom operator, but rather the smaller domestic companies.
In the NTC's public hearing on 3G licence and auction conditions this past Monday, True strongly opposed many points, including licences being granted via the auction process, citing that the method favoured large companies over smaller operators.
Senator Anan Woratitipong yesterday said the 3G licence auction would stimulate economic growth, given that it would lead to huge investment by bid winners in terms of licence payment and then network roll-out, which would create jobs.
Anan does not expect the auction bidding to rise too high.
The NTC, which marked its fifth anniversary yesterday, has invited Prime Minister Abhisit Vejjajiva to give a speech on Monday on the role of the independent regulator in the country's development.
Meanwhile, the watchdog returns money to the state coffers every year after deducting expenses from the regulatory fees it collects.
NTC deputy-secretary-general Takorn Tantansit said it had returned Bt158 million in the first year of establishment, Bt839 million in the second year, Bt795 million in the third and Bt2.6 billion last year.
It is expected to return Bt1.3 billion to the government this year.
A source at the National Telecommunica-tions Commission said the NTC expected to finalise the range of the reserve price for each licence at between US$150 million and $200 million (Bt5 billion-Bt6.7 billion).
The reserve price is the minimum amount the NTC expects to gain from each licence auction.
The watchdog will hold a board meeting next Wednesday to finalise the details, including the auction date, reserve price and bid starting price.
Sethaporn said the board would discuss whether it would reveal the reserve price, and whether the reserve price and the starting bid price should be the same.
The meeting will also see the watchdog finalising the contingency plan in the event of the number of those qualified to bid for the four licences being the same as or lower than the actual number of licences.
The NTC is concerned that if this were to be the case, there would be no genuine competition in the bidding.
Sethaporn said that if this were to happen, the NTC might not inform the qualified bidders of the number of bidders they are contending with. It might also surprise them by putting up fewer than four licences in the auction, in order to promote competition.
NTC secretary-general Suranan Wongvithayakamjorn said investors from India, Malaysia and Indonesia had asked the NTC for details of the auction, but he declined to specify their names.
NTC member Sudharma Yoonaidharma said he was opposed to holding the 3G licence auction so soon, as the national regulator had yet to come up with much crucial information for potential bidders.
He said that before the auction, the NTC should provide a comprehensive map of the details of all telecom networks in Thailand, so that those who are not current operators could clearly ascertain where they could roll out networks should they be awarded a licence.
He added that the NTC auction plan seemed to favour incumbent operators. Moreover, it seems the NTC's granting of the 3G licences has been publicly perceived as a way for the private telecom concession |holders to move customers from the concessions to the 3G licences in order to reduce their costs.
The private mobile-phone concession holders have to pay an average of 20 per cent of their revenue to one of the state concession owners, TOT and CAT Telecom. A 3G licence, however, is expected to cost them 6 per cent of their revenue per year.
Sudharma said he wanted to see Thai companies having a chance to win or share in the benefits from the 3G licences. He stressed that he did not mean True Corp, as True is a giant Thai telecom operator, but rather the smaller domestic companies.
In the NTC's public hearing on 3G licence and auction conditions this past Monday, True strongly opposed many points, including licences being granted via the auction process, citing that the method favoured large companies over smaller operators.
Senator Anan Woratitipong yesterday said the 3G licence auction would stimulate economic growth, given that it would lead to huge investment by bid winners in terms of licence payment and then network roll-out, which would create jobs.
Anan does not expect the auction bidding to rise too high.
The NTC, which marked its fifth anniversary yesterday, has invited Prime Minister Abhisit Vejjajiva to give a speech on Monday on the role of the independent regulator in the country's development.
Meanwhile, the watchdog returns money to the state coffers every year after deducting expenses from the regulatory fees it collects.
NTC deputy-secretary-general Takorn Tantansit said it had returned Bt158 million in the first year of establishment, Bt839 million in the second year, Bt795 million in the third and Bt2.6 billion last year.
It is expected to return Bt1.3 billion to the government this year.
Bharti and MTN scrap merger talks
India's top mobile company Bharti Airtel on Wednesday called off merger talks with South Africa's MTN Group aimed at creating an emerging market powerhouse, blaming South Africa's political leaders.
The South African government "has expressed its inability to accept it (the proposed deal) in the current form" and "in view of this, both companies have taken the decision to disengage from discussion," Bharti said in a statement.
The collapse of the politically sensitive talks marked the second time the two companies had failed to forge an alliance.They called off similar talks in May 2008.
A merger would have created the world's third-largest mobile operator by subscribers that would have dominated two of the globe's fastest-growing emerging markets - India and Africa.
Bharti's statement came hours before the expiry of the deadline for conclusion of the exclusive merger discussions,which had already been extended twice.
The South African government rejected Bharti's allegation it had scuppered the estimated $24-billion deal, saying the move to scrap the talks had been a joint decision by MTN and Bharti.
MTN said separately that both companies had been unable to strike a deal "within the economic, legal and regulatory framework within which both companies operate."
It hailed the "positive and constructive" nature of the talks and the "cooperation and supportive approach" of the South African and Indian governments.
Bharti, which wants to be a global telecoms giant, hung up on talks with MTN in May 2008 after the South African firm proposed an ownership structure that the Indian company said would have made it "a subsidiary of MTN."
This time, however, Bharti said, the proposed deal recognised both companies as "national champions" and its structure took into account "their leadership in their respective geographies to ensure continuity of business."
Under the proposed deal, Bharti would have been the biggest shareholder in the new group, taking a 49% stake in MTN while MTN shareholders would have had a 36% stake in Bharti.
The Indian company said it would "continue to explore international expansion opportunities," without elaborating.
"Bharti needs to go abroad because it's already the top Indian player," said an industry analyst, who asked not to be named.
The South African government "has expressed its inability to accept it (the proposed deal) in the current form" and "in view of this, both companies have taken the decision to disengage from discussion," Bharti said in a statement.
The collapse of the politically sensitive talks marked the second time the two companies had failed to forge an alliance.They called off similar talks in May 2008.
A merger would have created the world's third-largest mobile operator by subscribers that would have dominated two of the globe's fastest-growing emerging markets - India and Africa.
Bharti's statement came hours before the expiry of the deadline for conclusion of the exclusive merger discussions,which had already been extended twice.
The South African government rejected Bharti's allegation it had scuppered the estimated $24-billion deal, saying the move to scrap the talks had been a joint decision by MTN and Bharti.
MTN said separately that both companies had been unable to strike a deal "within the economic, legal and regulatory framework within which both companies operate."
It hailed the "positive and constructive" nature of the talks and the "cooperation and supportive approach" of the South African and Indian governments.
Bharti, which wants to be a global telecoms giant, hung up on talks with MTN in May 2008 after the South African firm proposed an ownership structure that the Indian company said would have made it "a subsidiary of MTN."
This time, however, Bharti said, the proposed deal recognised both companies as "national champions" and its structure took into account "their leadership in their respective geographies to ensure continuity of business."
Under the proposed deal, Bharti would have been the biggest shareholder in the new group, taking a 49% stake in MTN while MTN shareholders would have had a 36% stake in Bharti.
The Indian company said it would "continue to explore international expansion opportunities," without elaborating.
"Bharti needs to go abroad because it's already the top Indian player," said an industry analyst, who asked not to be named.
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