4G AUCTION

IN THAILAND

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Version 1.0

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Thailands National Broadcasting and Telecommunications Commission (NBTC) has finally

been able to set a timetable for the country's 4G spectrum auctions, after the cabinet gave
the green light to proceed with the auctions plans.
The NBTC expects to issue 4G licenses for the 1800 MHz spectrum November 11, 2015 and
the 900 MHz spectrum December 15, 2015.
If no further delays arise, NBTC expects to issue the licenses for the 1800 MHz spectrum in
December and the 900 MHz spectrum in January 2016.
The new commercial 4G services could then be rolled out by April 2016.

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TrueMove H under the True Corp was the first to introduce

4G LTE in Thailand with a trial service in February 2013
True utilizes 10 MHz of its 15 MHz of bandwidth on the 2100
MHz spectrum to offer 4G, via its roughly 10,000 network sites
nationwide.
True Move went commercial with the 4G and claims 800,000
4G subscribers end of 2014

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DTAC currently utilizes 5 MHz of bandwidth on the 2100 MHz

spectrum to offer 4G service, with the remainder being used
for 3G.
The company currently uses all 25MHz of its bandwidth on the
1800MHz spectrum for 2G cellular service, while it uses the
850MHz spectrum to provide 3G.
DTAC has 600,000 4G subscribers

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An LTE trial was approved on 2300 MHz by the NBTC.

TOT partnered with its concession holder AIS to trial 2300 MHz LTE TDD in
20 MHz of its total 64 MHz allocation, using 20 base stations in central Bangkok.

Digital Phone Co (AIS Subsidy) joined with CAT Telecom to test LTE1800 from mid-January 2012 in Mahasarakham

Japanese Telco, Softbank has formed a partnership with TOT which will focus on joint
development of a 2300 MHz LTE TDD network using TOT's bandwidth. It is likely that the
LTE network will be used for mobile backhaul for Wi-Fi access points and mobile cell sites.

The 2600 MHz frequency band has been assigned to MCOT and is utilized for MMDS technology. However,
MCOT, a broadcast company, is a not a 100% privatized company and a large part of its shares are held by
the Ministry of Finance, negotiations for the return of the spectrum has proven to be extremely challenging

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Thailand has 40 million smartphones, of which 25% are 4G-enabled devices

Source: Nokia Solutions and Networks (Thailand).

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License ends 2015

BTO contract ends 2015

900 MHz
17.5MHzBandwidth

MVNO Wholesale contracts

License ends 2025

AIS
17.5MHz

MVNO
15MHz

2100 MHz
15MHzBandwidth

Auctioned license

AIS
15MHz

2100 MHz
License ends 2027

Auctioned license

45MHzBandwidth

DTAC
15MHz

Auctioned license

True
15MHz

NBTC
Regulator

Ended 2013

DPC
12.5MHz

License

1800 MHz

BTO contract

Ended 2013

True
12.5MHz

75MHzBandwidth

Ends 2018

DTAC
50MHz

BTO contract ends 2018

License ends 2025

850 MHz
25MHzBandwidth

DTAC
10MHz

Wholesale - Resell

True
15MHz
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800 MHz (CDMA/UMTS)

CAT/BFKT 15 MHz Expires in 2025

824.4 MHz

CAT/DTAC 9.7 MHz Expires in 2018

834.4 MHz

839.4 MHz

900 MHz (GSM/UMTS)

TOT/AIS 17.5 MHz Expires in 2015

880 MHz

1800 MHz (GSM/*FDD-LTE)

849 MHz

897.6 MHz

TMV 12.6 MHz

Expired in Sept. 2013
1710 MHz

DTAC 25 MHz
Expires in September 2018

1722.6 MHz 1722.8 MHz

1900 MHz/2100 MHz (PCT/UMTS)

True
PCT
1906 MHz

915 MHz

1918 MHz 1920 MHz

2300 MHz (*TDD-LTE)

DPC 12.6 MHz

Expired Sept. 2013

1747.8 MHz 1748 MHz

DTAC
15 MHz

True
15 MHz

1760.6 MHz

AIS
15 MHz

1965 MHz

TOT
15 MHz

1980 MHz

TOT 64 MHz
2300 MHz

2400 MHz
MCOT 48 MHz
Expires in 2015

2600 MHz (*TDD-LTE &FDD-LTE)

2500 MHz

2536 MHz

2584 MHz

2592 MHz

2608 MHz

DTAC 25 MHz
Expires Sept. 2018
1785 MHz

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User

806

824

Trunked
Radio

839
CAT

849 851
CAT
DTAC

869

Trunked
Radio

884
CAT

894
CAT
DTAC

897.5
TOT/AIS

915 920-925

RFID

MHz

Expired 2015
Expires 2018
Expires 2025

942.5
TOT/AIS

960

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DCS1800 (UL)
TMV 12.6 MHz
Expired in Sept. 2013
1710 MHz

DTAC 25 MHz
Expires in September 2018

1722.6 MHz 1722.8 MHz

Unused
DPC 12.6 MHz
Expired Sept. 2013

1747.8 MHz 1748 MHz

1805 MHz

DTAC 25.3 MHz

Expires in September 2018

1817.6 MHz 1817.6 MHz

Unused
DPC 12.6 MHz
Expired Sept. 2013

1842.9 MHz

1785 MHz

1760.6 MHz

DCS1800 (DL)
TMV 12.6 MHz
Expired in Sept. 2013

DTAC 25 MHz
Expires Sept. 2018

1855.5 MHz

DTAC 24.5 MHz

Expires Sept. 2018
1880 MHz

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900 MHz (GSM/UMTS)

TOT/AIS 17.5 MHz Expires in 2015

880 MHz

1800 MHz (GSM/*FDD-LTE)

TMV 12.6 MHz

Expired in Sept. 2013
1710 MHz

897.6 MHz

DTAC 25 MHz
Expires in September 2018

1722.6 MHz 1722.8 MHz

915 MHz

DPC 12.6 MHz

Expired Sept. 2013

1747.8 MHz 1748 MHz

1760.6 MHz

DTAC 25 MHz
Expires Sept. 2018
1785 MHz

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The government has agreed with the digital economy panel's resolution to set aside other telecommunications spectra for 4G mobile
phones apart from the existing 900 MHz and 1800 MHz spectra. Some portion of the 2300 MHz and 2600 MHz spectra may be options.
TOT Plc, holds 64 MHz of the 2300 MHz spectrum, which is currently unused.
The ICT Ministry and TOT are studying the possibility of bringing the unused portion of TOT's 2300 MHz spectrum up for auction in order
to increase the amount of bandwidth.
2300 MHz (*TDD-LTE)

TOT 64 MHz
2300 MHz

2400 MHz

In exchange for the 2300 spectrum's return, TOT suggested to keep the 900 MHz spectrum that AIS has used to provide public telecom
service for 10 years.

MCOT Plc and the Public Relations Department holds 128 MHz and 26 MHz, respectively, of the 2600 MHz spectrum.

MCOT 48 MHz
Expires in 2015

2600 MHz (*TDD-LTE &FDD-LTE)

2500 MHz

2536 MHz

2584 MHz

2592 MHz

2608 MHz

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Analysis of preferred spectrum bands for LTE deployment (ITU, 2012)

Criteria

Frequency band
700 MHz

800 MHz

900 MHz

1800 MHz

1900 MHz

2.1 GHz

2.3 GHz

2.6 GHz

Signal propagation characteristics

Whether spectrum band is assigned internationally (or

regionally) for LTE

Availability of network equipment and consumer devices

(including handsets)

Availability of paired bands for uplink and downlink

transmissions (assuming the band is to be used for FDD)
or a large contiguous spectrum block if the TDD use is
proposed (or single TDD band)

Whether the band is cleared (or clean) of incumbent

users

Need for coordination or other complex negotiations with

other users and neighboring countries

Total

11

17

11

18

16

15

14

Score 1 - 6 with 6 being the ideal score

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The current minimum bids were set at 70%

of the full spectrum values by the International
Telecommunication Union (ITU) in 2014.
NBTC divided the 25 MHz bandwidth of the 1800
MHz spectrum into two slots of 12.5 MHz each and
set a minimum bid of THB 11.6 billion for each.

Total 25 MHz

12.5 MHz

12.5 MHz

Minimum

Minimum

11.6 billion

11.6 billion

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The auctions of 20 MHz of bandwidth on the 900 MHz

spectrum will be divided into two slots of 10 MHz each,
with minimum bids of THB 11.262 billion for the blocks.
At these current prices, the NBTC is estimated to gain
between: THB 45.7 and 65.3 billion from the auctions.
However, NBTC could scrap the 70% evaluation and
instead decide to go for a 100% valuation if there are at
least as many bidders as available licenses.

Total 20 MHz

10 MHz

10 MHz

Minimum

Minimum

11.262 billion

11.262 billion

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The NBTC has decided to set a maximum of how much bandwidth each
operator can hold, whether they bid for the new licenses late this year or not.

45 MHz
The cap is 45MHz for each operator. The cap will apply only to the
spectra in use and those with a validity period of more than five years.
It will not include ownership of bandwidth on the 2.3GHz and 2.6 GHz
spectra.
NBTC has a policy of remaining neutral on how the spectra up for bid
will be used, which means the winning bidders could utilize the
bandwidth for 2G, 3G or 4G service

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JUL

AUG

SEP

August 26
Draft auction plan
submitted to Royal Gazette

OCT

September 30
Bidding envelopes
submitted

NOV

DEC

October 21
Qualified bidders
to be announced
November 11
Auction date

July 17 - August 18
Public hearing

Aug. 28 - Sept. 28
One month sale of
bidding documents

We do not rule out the possibility of delays to the auction

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AUG

SEP

OCT

September 23
Draft auction plan
submitted to Royal Gazette

NOV

October 30
Bidding envelopes
submitted

DEC

JAN

November 20
Qualified bidders
to be announced
December 15
Auction date

August 5 - September 9
Public hearing

Sept. 28 - Oct. 28
One month sale of
bidding documents

We do not rule out the possibility of delays to the auction

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Advanced Info Service (AIS)

CAT TELECOM

Total Access Communication (DTAC)

Jasmine International (JAS)

TOT has not announced its plans

True Corp

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AIS fully supports holding the auctions of 900 and 1800 MHz spectra as soon as possible.
It currently provides 2G mobile service on 17.5 MHz bandwidth of the 900 MHz spectrum
under a concession with TOT, which is due to expire in September 2015.
AIS will participate in both auctions and hopes to win at least two licenses, one on each
spectrum. If it gets both, as hoped, it will use 1800MHz for 4G.
AIS expects to be able to start service 3-4 months after obtaining the license.
AIS plans to split the 900 MHz in half with 5 MHz bandwidth for its 2G subscribers and 5
MHz for 3G, especially in the provinces.

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The state enterprise is studying the possibility of participating in the 4G auctions.

CAT has 25 MHz of bandwidth on the 1800 MHz spectrum, previously used by True Move
and Digital Phone Co, for which the concessions expired in 2013.
The state enterprise also has a further 50 MHz on the 1800 MHz spectrum, now used by
DTAC to provide 2G service. That concession is due to expire in 2018.
In addition, CAT holds 15 MHz on the 850 MHz spectrum to provide 3G service together
with True Move subsidiary Real Move under a 15-year wholesale-resale MVNO
agreement since 2011. CAT also awarded an additional 10 MHz on the 850 MHz spectrum
to DTAC to provide 3G service.

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DTAC has proposed returning its unused 25 MHz on the 1800 MHz spectrum to the NBTC
for the 4G auctions.
The company provides 3G service on 15 MHz of bandwidth on the 2100 MHz spectrum
under a license with the NBTC.

DTAC has a total of 50 MHz on the 1800 MHz spectrum under a concession with CAT,
which is due to expire in 2018.
The company also has another 10 MHz of bandwidth on the 850 MHz spectrum under its
contract with CAT.

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The Internet service provider Jasmine International Plc (JAS) plans to enter the 4G
spectrum auctions through a joint venture with a foreign telecom firm with an
investment budget of up to THB 35 billion.
JAS plans to spend THB 25-35 billion on the initial 4G investment scheme. Of the total,
THB 15-20 billion will be marked for the license auction and the remaining 10-15 billion
for network spending.

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TOT wants to keep 17.5 MHz of bandwidth on the 900 MHz spectrum after its concession
expires to provide its own 4G service in order to generate revenue and services to
Thailands digital Economy projects.
TOT also has 100 MHz on the 2300 MHz spectrum, most of it unused.

TOT operates 3G service on the 2100-MHz spectrum under a licensing regime without an
auction.

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True Move has thrown its full support behind the government's initiative to bring the
2300 and 2600 MHz spectra into the 4G auctions.
It prefers to bid for the 1800 MHz spectrum rather than the 900 MHz spectrum.

The delays to the 4G spectrum auction has been beneficial for True, as it could maintain
its competitive 4G advantages, gaining market shares at the expense of AIS and DTAC.
However, the 4G spectrum auction would clear out such competitive advantages and
level the playing field in the market.
True would have a strategic reason to outbid DTAC in the auction to overtake DTAC and
take the number two position in the market.

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Cellular towers

Concession

License

Concession

License

Concession

License

13,690

6,000

11,000

1,500

6,000

11.845

Installed BTS/Node B

2100 MHz

0
15,000
4,000
0

0
0
0
20,500

5,000
0
11,000
0

0
0
0
12,500

0
0
7,000
0

14,000
0
0
5,000

Total

19,000

20,500

16,000

12,500

7,000

19,000

850 MHz
900 MHz
1800 MHz

Grand Total

39,500

28,500

26,000

2G Coverage

97% of Population

95% of Population

90% of Population

3G coverage

97% of Population

88% of Population

97% of Population

4G Coverage

0% of Population

10% of Population

30% of Population

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Yozzo is a Telecom Consulting firm, specializing in Information and Communications Technology (ICT).

We assist public and private sector clients in their decision making through market insights, experience and technical
skills. Our clients includes: Governments, Telecom Regulators, Telecom operators, MVNOs, Mobile device manufacturers,
Retailers, Software & Service providers, Media and Broadcasting companies.

We approach consultancy engagements from a commercial perspective, with the aim of adding significant value to your
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efficiency, productivity, and profitability of your business.

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