On February 17, 2020, the National Broadcasting and Telecommunications Commission (NBTC) of Thailand concluded its 5G spectrum auctions, raising a total of 100.52 billion baht (US$3.2 billion) in the process. The auction, which took place in Bangkok, saw the participation of several major mobile operators, including Advanced Info Service, True Move H Universal Communication Plc, CAT Telecom Plc, TOT Plc, and Total Access Communication Plc (DTAC). According to Takorn Tantasith, Secretary-General of the NBTC, the successful auction marked a significant milestone in the country’s transition to 5G technology.
The NBTC auctioned a total of 48 licenses across three spectrum bands: 700MHz, 2600MHz, and 26GHz. Advanced Info Service emerged as the biggest winner, securing 23 licenses across all three bands.
True Move H Universal Communication Plc followed closely, winning 17 licenses, with nine licenses in the 2600MHz band and eight licenses in the 26GHz band. State-run operators CAT Telecom Plc and TOT Plc, which participated in the auction for the first time, won a combined total of six licenses. Total Access Communication Plc (DTAC), which only joined the bidding on the high-band 26GHz, won two licenses.
The final price for each license reached 1.95 billion baht, with firms that won licenses in the 700MHz and 2600MHz bands required to pay the government over a period of 10 and seven years, respectively. Those who won licenses in the 26GHz band are obliged to pay the full amount within 12 months.
The successful auction is expected to pave the way for the commercial rollout of 5G services in Thailand later this year. According to the NBTC, 5G technology will significantly improve the country’s digital sector, allowing for data speeds of up to 100 times faster than 4G networks.
As noted by Somchai Lertsutiwong, CEO of Advanced Info Service, “The 5G network will enable a wide range of new services and applications, including enhanced mobile broadband, massive machine-type communications, and ultra-reliable low-latency communications.” The rollout of 5G services is also expected to drive economic growth, with a study by the GSMA predicting that 5G will contribute to a 1.2% increase in Thailand’s GDP by 2025.
The outcome of the auction was welcomed by industry players, who see the rollout of 5G services as a major opportunity for growth and innovation. As stated by Saran Phaloprakarn, President of True Move H Universal Communication Plc, “The 5G auction marks a significant milestone in the development of Thailand’s digital infrastructure.
We are committed to investing in the rollout of 5G services and exploring new use cases and applications that will benefit our customers and the wider economy.” The auction also drew praise from international organizations, with the International Telecommunication Union (ITU) noting that the successful auction demonstrates Thailand’s commitment to developing its digital economy. The NBTC has established a regulatory framework to ensure the efficient rollout of 5G services in Thailand. The framework includes rules on spectrum allocation, licensing, and network sharing.
According to the NBTC, the regulatory framework is designed to promote competition, innovation, and investment in the 5G sector. As noted by Takorn Tantasith, Secretary-General of the NBTC, “We have established a clear and transparent regulatory framework to ensure that the rollout of 5G services is efficient, effective, and beneficial to all stakeholders.” The framework is also expected to provide a level playing field for all industry players, including new entrants and existing operators.
The successful auction of 5G spectrum in Thailand marks a significant milestone in the country’s transition to 5G technology. With the commercial rollout of 5G services expected later this year, Thailand is poised to become a major player in the regional digital economy. As the country continues to invest in its digital infrastructure, it is likely that we will see significant economic growth and innovation in the years to come.
According to a report by the Asian Development Bank, the rollout of 5G services is expected to drive economic growth, improve productivity, and enhance the overall quality of life in Thailand. With the support of industry players, regulators, and international organizations, Thailand is well on its way to becoming a leader in the 5G sector.
