Key View
- NT’s exclusion from Thailand’s latest spectrum auction and the impending expiry of its spectrum rights in August 2025 leave it increasingly vulnerable. Both major private operators have shown interest in acquiring NT’s assets, underlining the state-owned incumbent’s growing financial and competitive pressures.
- The auction included spectrum bands suitable for both 4G and 5G use, such as the 2300MHz and 1500MHz bands; however, the internationally favoured 3500MHz 5G band will be auctioned separately at a later stage. The two leading operators are well-positioned to secure these assets, likely at lower prices, as demonstrated by the outcomes of the most recent auction.
Thailand’s National Broadcasting and Telecommunications Commission (NBTC) has awarded Thai telcos Advanced Info Service (AIS) and True Corporation frequencies in the 1500MHz, 2100MHz and 2300MHz bands for a total consideration of THB41bn (USD1.26bn). AIS subsidiary Advanced Wireless Network (AWN) acquired all three 2100MHz spectrum blocks for a total of THB14bn, paying THB4.9bn per block. This represents a premium of approximately 10% over the reserve price of THB4.5bn per block.
The lighter bidding intensity allowed AIS and True to secure strategic spectrum at lower costs than might have been expected. This cost efficiency could lead to upward earnings revisions for these companies, as their profit-and-loss and cash flow statements benefit from reduced spectrum acquisition expenses, but also potentially freeing up more funds for network expansion.
NT’s rights to the 850MHz, 2100MHz and 2300MHz bands expire in August 2025 and both AIS and True were reportedly looking to buy its assets as the operator is under mounting pressure to reduce costs and restructure. The spectrum licensing fees add to THB1.6bn (USD48.3mn) of annual costs. If the operator was to file for bankruptcy or restructuring, there is a possibility that the NBTC would repossess the spectrum and re-auction or reassign it, further consolidating the market.
Thailand Spectrum Auction Highlights Growing Telecoms Market Challenges for NT
Thailand’s recent spectrum auction has underscored the evolving challenges facing the country’s telecom industry, particularly for state-owned National Telecom (NT). Significant bidders, including private giants, have aggressively pursued newer frequency bands, aiming to expand their 5G and broadband networks. This heightened competition highlights NT’s struggle to keep up with rapid technological advancements and the shifting market dynamics.
The auction’s competitive nature reflects the broader trends in Thailand’s telecom sector, where demand for high-speed internet and advanced connectivity solutions continues to surge. Private firms leverage their financial muscle to invest heavily in infrastructure, aiming to meet consumer expectations. Meanwhile, NT faces hurdles due to its limited resources and bureaucratic constraints, hindering its ability to invest and innovate at the same pace as its private counterparts.
For NT, maintaining relevance requires strategic modernization efforts and perhaps forming partnerships with private entities. As the telecom landscape rapidly evolves, NT must navigate these challenges to ensure it remains a key player in Thailand’s digital future.
