Junta has an eye on billions from spectrum auctions

The money the National Broadcasting and Telecommunications Commission (NBTC) made from the auction of the digital TV spectrum should flow back into the state coffers.

It concerns an amount of 50,8 billion baht that is currently on a off budget base is managed and beyond the control of the Budget Bureau and the National Economic and Social Development Board.

With this intention, the military authority responds to an investigation by the Office of the Attorney General (OAG) into the state of affairs at the NBTC. According to the OAG, the money earned from the auction is not managed efficiently and in accordance with the law.

As a result of the investigation, the military authority also wants to cut some articles of the Frequency Allocation Act of 2010 to repair loopholes in the law.

For example, telecom company TOT Plc, owned by the government, is heading for a loss of 10 billion baht this year, because it is not allowed to include income from concessions in its balance sheet, but must hand it over to the government. The law has required this since December 2013. In 2013, TOT made a profit of 4,3 billion baht.

There must also be a change in the requirements set by the NBTC for the recruitment of members of the Executive Board. The question is whether the appointed board members are qualified to manage finances and oversee matters in the field of telecommunications and broadcasting.

Another section of the law that is eligible for revision prescribes that the NBTC must allocate frequencies through an auction in all cases.

According to NBTC Vice Chairman Settapong Malisuwan, this demand limits the country's development in telecommunications and broadcasting, as "unlicensed regimes" have gained international influence. According to him, it is not necessary to auction spectra for taxi radio and satellites in order to comply with international practice. Settapong believes that more than half of the 95-section Frequency Allocations Act should be revised to avoid legal action and advance the telecom and broadcast industry.

Domino effect

Three projects of watchdog NBTC with a combined value of 85 billion baht are being scrutinized by the NCPO: the 4G auctions, scheduled for August and November, the distribution of a 1.000 baht voucher to all Thai families and a fund for basic communication infrastructure.

The NCPO's intention has not gone down well with the telephone and television companies. The decision could have a domino effect with significant damage to the entire industry, they say.

The distribution of the vouchers is scheduled for the end of next month or the beginning of August. The voucher can be used when purchasing a set-top box needed to switch from analogue to digital. When the issuance is delayed, the digital TV channels lose 2,5 billion baht per month. Banks can also be disadvantaged, because the companies then run into problems when repaying loans.

Postponement of the 4G auctions is particularly detrimental to AIS, as the company owns fewer frequencies than its competitors. There is an urgent need for 4G, because the existing 3G network is heavily overloaded.

(Source: Bangkok Post, 18 and 19 June 2014)