Thai regulator defends 3G license auction

Thailand’s main telecoms regulator defended the results of a long-delayed auction of third-generation mobile spectrum bandwidth after criticism that it was underpriced.

The auction netted the government Bt41.7 billion ($1.36 billion) – just 2.8 percent above the government’s reserve price and 30 percent below the value calculated by a National Broadcasting and Telecommunications Commission (NBTC) advisory panel. Thailand’s top three mobile operators paid an average of Bt4.63 billion for nine 3G licenses, landing three 15-year licenses each. Six of the licenses sold for the minimum price of Bt4.5 billion. Critics including consumer groups and a leading private think-tank criticized the auction as uncompetitive and underpriced. Some threatened to take legal action to overturn the auction results once they are certified in January. Opponents of the 3G auction derailed the originally planned sale in 2010.