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Nokia urges change to auction rule on bidder numbers [Bangkok Post, Thailand :: ]
[May 14, 2014]

Nokia urges change to auction rule on bidder numbers [Bangkok Post, Thailand :: ]

(Bangkok Post (Thailand) Via Acquire Media NewsEdge) May 14--Nokia, the Finnish maker of mobile broadband network equipment, is urging the national telecom regulator to eliminate the condition for this year's fourth-generation (4G) spectra auction regarding the minimum number of bidders required to participate, saying the rule could result in termination of the auction.

Harald Preiss, Nokia's head of networks, disagrees with National Broadcasting and Telecommunications Commission rules stipulating the 4G spectra auction must be cancelled if there are fewer than three bidders.

The company, formerly known as Nokia Siemens Networks, changed its name to Nokia after it bought back Siemens's 50 percent stake in NSN for US$2.2 billion last year.

Network equipment contributes up to 90 percent of Nokia Corporation's revenue.

Nokia now has three major businesses: networks, web-based locations and technologies. The company recently sold its mobile handset operating unit to Microsoft Corporation.

Harald Preiss, head for networks at Nokia, disagreed with the National Broadcasting and Telecommunications Commission's rules stipulating the 4G spectra auction would be cancelled if there were fewer than three bidders.

He expressed concern that only industry leaders Advanced Info Service and Total Access Communication would enter the 4G auction this year, with third-ranked True Move failing to join the bid due to its vast spectrum occupation.

Mr Preiss said people in Thailand truly need the 4G rapid mobile broadband service, evidenced by the skyrocketing mobile data traffic.

"Scrapping the 4G auction will not only make operators lose the revenue opportunity, it will also impede the development of the country's telecom infrastructure,'' he said.

Mr Preiss said the proliferation of smartphones and tablets globally has boosted global data usage 35-50 percent in Asia-Pacific. In countries with 4G service, mobile data traffic surged 80 percent.

Claudio Frascoli, strategic marketing manager, said mobile operators worldwide look set to see losses of $700 million from voice revenue as well as SMS and MMS services by 2020.

He said mobile operators in South Korea could double their data revenue per user within two years of launching 4G services.

Prices of 4G-enabled smartphones are likely to decline to $100-150 in 2015, down from the current $300. This will play a key role in stimulating the adoption of 4G service, particularly in emerging markets.

Mr Frascoli also said local mobile operators should work more closely with social network sites and social messaging service providers to boost mobile data revenue.

___ (c)2014 Bangkok Post (Bangkok, Thailand) Visit the Bangkok Post (Bangkok, Thailand) at Distributed by MCT Information Services

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