DRAWING THE LINE

B3bn too little for spectrum, chief says

MCOT objects to the telecom regulator’s plan to pay B3bn for recalled spectrum.

MCOT objects to the telecom regulator’s initial plan to pay 3 billion baht in compensation to recall 160MHz of bandwidth on the 2600MHz range held by the state broadcaster, saying the figure is too low.

The National Broadcasting and Telecommunications Commission (NBTC) wants the recalled bandwidth to go up for bid in the 5G spectrum auction scheduled for February.

The regulator plans to auction off four spectrum ranges meant for the 5G network on Feb 16, including 15MHz of bandwidth on the 700MHz range, 35MHz on the 1800MHz range, 190MHz on the 2600MHz range and 2700MHz on the 26GHz range.

President Kematat Paladesh said MCOT is ready to support the NBTC’s recall of the unused 2600MHz range, but the compensation figure must be fair to the company.

He rejected the NBTC’s contention that MCOT’s 2600MHz concession expires in 2022, saying the concession should start when the range is actually used. The range has been left unused so far, Mr Kematat said.

MCOT plans to capitalise on the range with a pay TV service under an agreement with partner Playwork, a deal made in 2010. But the project has yet to get off the ground because the NBTC has not approved the idea.

Mr Kematat said the concession’s valid use time should also be taken into account when determining the compensation figure.

“We are waiting for the official resolution from the NBTC’s board about the compensation, which is expected later this month,” he said.

MCOT is a SET-listed and state-run company, he said, and all operational decisions must be made carefully to ensure the organisation’s benefits.

Once the NBTC board announces a resolution on compensation, MCOT will hold a board meeting to consider options, Mr Kematat said.

He termed the 3-billion-baht compensation “unacceptable” for MCOT. The figure — about 10% of the total reserve price for 190MHz of bandwidth on the 2600MHz range — is too low, he said.

The compensation issue will have no bearing on the planned auction for the spectrum, he said, because the compensation can be negotiated in the future.

“But MCOT wants to see a fair figure rather than bring the dispute to court,” Mr Kematat said.

Apart from MCOT, the Government Public Relations Department also has to return 30MHz of bandwidth on the 2600MHz range for February’s auction.

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We are waiting for the official resolution from the NBTC’s board about the compensation. KEMATAT PALADESH President, MCOT