Dtac urges NBTC to rethink cap on bandwidth

The bandwidth cap is also not in line with the government’s "digital economy" policy, Dtac said in a statement. The company will soon submit its views on the spectrum cap for the NBTC’s consideration.

The spectrum cap is part of the NBTC’s draft of the rules governing the upcoming auctions of licences for the 1,800- and 900-megahertz spectra, aiming to prevent hoarding. The draft rules limit the total bandwidth each telecom operator can own at 60MHz. The bid winners would be required to hand over part of their bandwidth if they end up exceeding the maximum after the auction. The excess would be transferred to the NBTC or the state telecom agencies, depending on which of them issued the bandwidth in question.

According to Dtac, Thailand has to ensure the availability of sufficient telecom bandwidth in response to the soaring demand for wireless broadband services, particularly at this time when the government has been promoting a "digital economy".

In Dtac’s view, the holding of bandwidth by telecom operators should not be regarded as hoarding, as they have the right to such holdings under the relevant laws for the provision of services.

Moreover, the telecom sector is in a period of transition from the state concession system to the NBTC licensing system. As this transition has yet to be completed, the telecom operators have been utilising bandwidth under both systems, but that does not mean they have hoarded the bandwidth to stem market competition, Dtac said.

Dtac suggested that before imposing a spectrum cap, the NBTC should map out how much bandwidth will be reallocated, and when. Studies on the structure of the telecom market and forecasts of bandwidth demand should also be conducted. All these should be key factors to specify the appropriate amount of bandwidth each of operators could hold.