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Wed, April 26, 2006 : Last updated 21:41 pm (Thai local time)



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Home > Business > NTC completing draft guidelines on awarding 3G licences





NTC completing draft guidelines on awarding 3G licences

The national telecom regulator will finish the draft guidelines for awarding licences to operate third-generation (3G) broadband cellular services next month.

Sethaporn Cusripituck, a National Telecommunications Commission (NTC) commissioner, said the guidelines would be presented at a hearing with telecom groups before being revised for a public hearing later.

"We want to bring out the licensing regulations as soon as possible, since several telecom operators are waiting for 3G licences," he said on Monday during a seminar, "The NTC and Telecom-Industry Development", held by the Telecommunications Association of Thailand.

The NTC temporarily halted its activities related to the 3G licences after the Central Administrative Court's ruling last November that the process of selecting 14 candidates for seats on the National Broadcasting Commission (NBC) was unconstitutional. The verdict sent the establishment process for the NBC back to square one.

The Telecommunications Business Act of 2001 requires both the NTC and the NBC jointly to allocate existing spectrums and grant new spectrum licences, including 3G licences.

Sethaporn said, however, that the NTC had to make a move on the drafting of 3G guidelines as planned.

The new 3G technology can transmit bandwidth-hungry applications and services to 3G mobile-phone users at lightning speed.

Sethaporn said the draft guidelines would feature a clear definition of 3G technology and specify the number of licences to operate 3G cellular services on the new spectrum.

He added that the guidelines would also raise the question whether those who want to operate a 3G cellular service would have to apply for both a 3G-spectrum licence and a 3G-technology licence or for only a spectrum licence.

The guidelines will raise issues concerning suitable bandwidth for the 3G spectrum to be allocated to the licence applicants and whether telecom operators could develop 3G cellular services on their existing spectrums.

The NTC will also focus on the impact of 3G technology and investment on the Thai economy and suitable methods for granting 3G spectrum bands: whether they should be awarded through auction, a so-called "beauty contest" or a combination of the two.

A beauty contest is where those bidders with the best proposals receive licences.

"Moreover, the guidelines will address the question of what is an appropriate licensing period," said Sethaporn. He admitted it would be difficult for the NTC to reach a conclusion if it could not award 3G licences without waiting for the NBC.

Another difficult issue is whether the NTC is authorised to permit telecom operators to conduct a trial offering of 3G services.

He said the NTC once consulted the Council of State on that matter, and the council told the NTC to adhere to telecom law, which dictates that conducting a trial to provide 3G cellular services is the same as commercially launching the same.

Alongside its plan to wrap up 3G licensing regulations soon, the NTC is moving at a faster pace to finish licensing regulations covering the international-call and international Internet-gateway businesses.

"Experts from the World Bank are helping us work out the regulations," said Sethaporn.

The NTC is also working on satellite-licensing regulations and considering how to regulate the competition between local and foreign satellite companies.

Sethaporn said the licensing body was expected to approve telecom competition-code regulations next week, after which they would be put into effect soon. 

Usanee Mongkolporn

The Nation








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