NBTC nudges MCOT for spectrum return

The telecom regulator is resuming discussions with MCOT Plc, calling on the stateowned public broadcaster to return unused 2600MHz broadcasting spectrum for later use in 5G network development.

The move follows yesterday’s resolution by the National Broadcasting and Telecommunications Commission (NBTC) board that officially passed the final draft and established a spectrum and compensation regime for recalling unused spectrum ranges for auction.

The 2600MHz spectrum is owned by MCOT, which holds a total of 190MHz of bandwidth for upload and download under a concession that ends in 2022.

NBTC secretary-general Takorn Tantasith said the resolution is in line with Section 27 of the amended Frequency Allocation Act, generally known as the NBTC law. In effect since June, Section 27 says the regulator must recall spectrum slots, many held by state agencies and not efficiently used, for reallocation through auctions.

The new law lets the NBTC pay compensation to spectrum holders to better allocate spectra, which are considered a national resource.

The 2600MHz range is prioritised for auction under the amended NBTC law for spectrum return and compensation.

“The final draft is expected to be published in the Royal Gazette by the end of November, so the process will begin in December,” Mr Takorn said.

Previously, MCOT agreed to return an unused 90MHz of bandwidth on the 2600MHz band to the NBTC in exchange for compensation.

Apart from the 2600MHz, Mr Takorn said the NBTC plans to recall several spectrum ranges for auction in the future, including 470-, 1500- and 3400-3800MHz, as well as the 26-28GHz band.

The 470MHz range is held by TOT, which previously returned some unused spectrum from the range to the NBTC. The regulator wants to recall all the unused 470MHz range for spectrum reallocation.

The NBTC is trying to rearrange the 700MHz band (operated by digital and analogue TV channels) by transferring the TV channels to the range of 470-510MHz. The 700MHz spectrum will instead be used for wireless broadband in compliance with global standards.

For the 1500MHz spectrum, 35MHz of bandwidth is used by TOT for signal transmission services for rural telephones, while 56MHz is used by Chevron Thailand Exploration and Production and Chevron Offshore Thailand for surveying and petroleum production.

The NBTC is considering recalling a combined 360MHz of bandwidth on the 3500-3800MHz range, now partly used by satellite business provider Thaicom Plc. The regulator may also recall 6GHz of bandwidth on the spectrum range of 26-28GHz, part of which is used by Thaicom.

Mr Takorn said the NBTC will set up a subcommittee to determine compensation for the recalled spectrum, which will include details and rates of compensation as a benchmark for every case.

The subcommittee for determining compensation will include representatives from state agencies such as the Finance Ministry, the Budget Bureau, the National Economic and Social Development Board and the Digital Economy and Society Ministry.

“When details of the spectrum bandwidth recall and compensation benchmarks are concluded by the subcommittee, they will be submitted to the NBTC board for approval,” Mr Takorn said. “After that, the NBTC will propose terms to agencies that hold spectra for their consent.”

He said the agencies can disagree with the details and compensation rates that the NBTC determines, which means the process will entail further negotiation.

“The process of determining details and compensation rates until all parties consent is targeted at 150 days or within 270 days at the latest, as the NBTC needs to adhere to the timeline and try to reallocate spectra to optimise public benefit,” he said.

Mr Takorn said the 2600MHz band is the NBTC’s priority and of greatest interest to operators.

The moves will facilitate 5G development, which is critical to the government’s digital transformation roadmap.

Without 5G adoption by 2030, Thailand faces a 2.3-trillion-baht opportunity loss, or 20% of GDP, according to a recent study by the NBTC.

Manufacturing would be most affected, with possible losses ranging from 700 billion to 1.6 trillion baht by 2030 if 5G is not fully developed.

‘‘ The NBTC needs to adhere to the timeline and try to reallocate spectra to optimise public benefit.

TAKORN TANTASITH Secretary-general, NBTC