True, Jasmine win 4G licences

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Thailand 4G auction

True Corporation and Jasmine International will compensate 151.95 billion baht for licences to yield fourth-generation wireless services in Thailand after outbidding incomparable rivals Advanced Info Service and Total Access Communication (DTAC) in an auction that ran for roughly 4 days.

True, 18% owned by China Mobile and tranquil by billionaire Dhanin Chearavanont’s Charoen Pokphand Group, surfaced a behest for a 900MHz spectrum with 76.3 billion baht, while Jasmine’s bid was valued during 75.67 billion baht.

Jasmine’s feat will pave a approach for a initial incursion into mobile internet. The association now provides broadband services underneath a 3BB brand.

The four-day auction, that finished in a 199th turn early on Saturday, will move in 151.95 billion baht in state revenue, bringing a sum from mobile spectrum bids this year to 232.73 billion. 

After a behest process, that took 65 hours, a bids were scarcely 6 times aloft than a value of a spectrum and roughly double a winning bids in a prior auction, a National Broadcasting and Telecommunications Commission (NBTC) said.

Total Access Communication (DTAC) had a many to lose, since AIS and True won licences to offer 4G services on a 1,800MHz spectrum during a identical auction final month.

The outcome might warn investors who coming Advanced Info Service (AIS) and DTAC to precedence their stronger change sheets to accelerate their 4G network enlargement and squeeze a incomparable share of a marketplace for mobile information in Thailand, that had about 86 million mobile-phone subscribers as of September.

TAC shares slumped 16% this week as investors disturbed that a high bid costs, if it won a auction, could erode earnings. The SET ICT index is down 21% in a past 3 months, compared with a 6% tumble for a broader SET Index. TAC has been a tip loser, shifting 35%, while True declined 27%. AIS batch has strew 15% and Jasmine 17% over a three-month period.

Faster networks

DTAC has 3 years before a stream looseness expires, NBTC commissioner Prawit Leesatapornwongsa told reporters early on Saturday.

“It has to work on selling strategies, and find new frequency, and it can bid when a looseness expires in 2018,” Mr Prawit said.

Customers will start relocating to a new faster networks in February, and a series of 4G subscribers will strech 20 million by a finish of subsequent year, according to a NBTC.

The auction was also a asset for a government, that has affianced to use a 234 billion baht lifted in new months to assistance farmers cope with dry continue and slumping stand prices.

Companies began charity 3G services in mid-2013 after 8 years of delays caused by authorised battles and regulatory wrangling. In 2012, a NBTC lifted 41.6 billion baht in an auction for licences of third-generation mobile services. AIS, DTAC and True won those licences. DTAC and True had already started charity services during speeds coming 4G regulating existent spectrum.

“It will assistance expostulate Thailand toward a digital economy,” Minister of Information and Communication Technology Uttama Savanayana told reporters on Friday. “Proceeds from a auction will also advantage all sectors in Thailand.”

The country’s mobile marketplace is dominated by a tip 3 players — AIS, DTAC and True Move, a section of True Corp — and analysts design foe will feature now that Jasmine has won a looseness to turn a fourth operator.

Analysts pronounced a high turn of a bids could put vigour on a financial positions of True and Jasmine, that could boost a risk of an equity emanate to lift finds to assistance compensate for a world’s many costly licences.

True shares sealed on Friday during 7.25 baht, down 10 satang, in trade value 763.28 million baht while Jasmine shares (JAS) sealed unvaried during 4.78 baht in trade value 1.61 billion baht.

AIS shares (ADVANC) sealed down 6 baht to 193 baht in trade value 2.72 billion while DTAC shares sealed down 4.25 baht to 38 baht in trade value 774.8 million baht.    

AIS, 23% owned by Singapore Telecommunications Ltd, and True won bids value total 80.78 billion baht in November’s auction.

AIS, that has a largest subscriber base, needs a new looseness to enhance coverage after it lags behind rivals on 4G services, while DTAC wants a looseness to revoke a costs and to stop True from gaining marketplace share.

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