Hiccups in Thailand's 3G development path

The likelihood of Thailand being labelled as a high regulatory risk country is high according to industry experts if the auction of 3G licences was delayed indefinitely due to a move to review the licensing terms. This is after the ICT Minister said she would ask the government to instruct the National Telecommunications Commission (NTC) to reconsider the auction's terms and conditions, in bid to safeguard the revenues of the two state telecom enterprises, TOT and CAT Telecom. This might result in dragging out the auction process which can be detrimental to the country's 3G plan.

Some blame the NTC for declining discussion with the Finance Ministry about the possible impacts on TOT and CAT before proceeding with the auction plan. However, NTC had revealed that it could still move ahead with the auction as planned. The auction of four 3G licences on the 2.1GHz spectrum is tentatively set for 8 December. Nevertheless, it is highly likely the NTC will eventually make adjustments to the terms and conditions. One of the amendments regarding ownership structure is expected to be changed to give CAT and possibly TOT more opportunity to participate in the bidding.