Thailand’s regulator was paid a visit on Friday by a group of 300 protesters demanding 3G and calling for the October auction to proceed without further delay.
Telecom chairman Setthapong Malisuwan told the protesters and issued a press release addressing those who had strong feelings to the reserve price and the last-minute changes to the spectrum cap. He said that he has tried to explain the reserve price with econometric models and experience from other countries’ auctions. He said that after sitting down, those academics now understand his point of view.
Most vocal of the critics was Dr Somkiat Tangkitvanich, deputy director of think-tank Thailand Development and Research Institute (TDRI) who slammed the NBTC for destroying the auction and costing the exchequer an estimated $555 million (17 billion baht) by removing any incentive to bid higher.
The NBTC reduced the spectrum cap from 20 MHz to 15 MHz. With 45 MHz available, three incumbents and a new foreign dominance law that effectively bans foreign investment, most analysts now expect the spectrum to go at the base reserve price or at a small premium.
Colonel Setthapong said that he reduced the spectrum cap to ensure parity so that Thailand was not locked into a situation that saw the two cash-rich operators with 20 MHz each and the third place operator with just 5 MHz.
A source close to the NBTC who was present at the gathering dismissed it as a pre-arranged publicity stunt. However, he did express concern on the situation that was becoming more tense and as the auction date draws closer.