[November 06, 2009]

NTC expects huge 3G economic benefit [Bangkok Post, Thailand]

(Bangkok Post (Thailand) Via Acquire Media NewsEdge) Nov. 6--The launch of third-generation mobile services could boost economic growth by as much as 2.3 percentage points and create up to 80,000 new jobs, according to Sethaporn Cusripituck, a member of the National Telecommunications Commission.

Mr Sethaporn said 250 billion to 300 billion baht in new investment would enter the economy to create the new 3G network, with the government itself expecting to receive as much as 20 billion in funds from the auction of four new operating licences.

The NTC had hoped to auction the licences by the end of the year, but now expects to begin to do so in early 2010.

Mr Sethaporn, speaking at a conference organised by the Stock Exchange of Thailand's Capital Market Academy, said banks and the capital market would also benefit as licensed operators looked to raise funds to finance the licence bids and network investment.

He said local telecom operators estimate that each network will require capital investment of around 10 billion baht per year over a period of several years.

This excludes additional spending that will be required for new 3G-compatible handsets, software and content development and human resource training.

Mobile operators are eager to launch new 3G services to support growing customer demand for mobile internet and data services. The three major mobile operators -- Advanced Info Service, Dtac and True Move -- have been testing 3G services over the past year, but cannot launch full commercial services until the NTC licences are awarded.

"Overall, we see total investment and economic benefits from 3G at over 500 billion baht," Mr Sethaporn said.

But he acknowledged that further delays were possible from the NTC's current auction target of February 2010, due to legal questions about the auction itself and delays in filling vacant positions on the NTC board. The Senate is due to begin hearings to fill four vacancies on the NTC board on Nov 23.

Regulators have asked the Council of State to rule on the authority of the NTC in issuing new operating licences as well as whether existing operators must convert their current concession agreements with the state-owned TOT Corp or CAT Telecom before bidding for 3G licences. Also uncertain is whether the 3G auction must comply with the screening requirements of a 1992 law governing large investment projects between the companies and the government.

Sudharma Yoonaidharma, another NTC board member, said he favoured an auction delay until clarity was reached on the various outstanding issues.

"One issue that must be considered is the overall competitive landscape of the industry after the auctions. 3G is not just a new handset," he said.

Mr Sudharma said the NTC had yet to consider critical issues such as end-user fees and service levels, the criteria to be used for the auction process and the issue of number portability and its impact on the migration of current mobile users to 3G services.

"Personally, I don't think it is necessary to wait for a legal opinion. The NTC has not overstepped its authority or responsibilities, nor did it violate the constitution [in issuing licences]," he said.

Suranan Wongvithayakamjorn, the NTC secretary-general, said the NTC had no plans to request an interpretation from the Constitutional Court regarding the agency's authority.

He said in practice, the Constitutional Court will issue a ruling only once an action is taken that may be in violation of the charter. As the NTC has yet to take any action, no ruling is necessary.

To see more of the Bangkok Post, or to subscribe to the newspaper, go to http://www.bangkokpost.com.

Copyright (c) 2009, Bangkok Post, Thailand Distributed by McClatchy-Tribune Information Services.

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