Thailand’s three major mobile operators will compete for two licenses in auction that starts next week.
Excessive competition for Thailand’s third-generation mobile phone licenses will likely drive up fees for carriers and pressure earnings of the country’s major telecom operators in the near term.
Units of Advanced Info Service PCL, Total Access Communication PCL and True Corp. PCL are each bidding for 3G wireless spectrum at an auction slated to kick off Monday, with a starting price of $416 million. The first round will select two bidders, with a final auction for a third taking place later in the year. Analysts say should the final auction price for the two licenses turn out to be extremely high, the euphoria building around 3G will be short-lived. 3G licenses would be positive for all operators in the long-term as it could generate further growth, but the greater the cost, the smaller the upside it would provide.