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Bangkok Post
Bangkok Post
Business

Upcoming frequency auction expected to generate B500m

Roughly 500 million baht is expected to be generated from the auction of 71 radio frequency ranges used for FM broadcasting by radio stations, scheduled to take place on Monday, according to the National Broadcasting and Telecommunications Commission (NBTC).

The event is part of a transformation from a state-owned frequency holding system to a licensing regime, which is due to start on April 4, according to the NBTC's master plan for radio broadcasting.

NBTC acting secretary-general Trairat Viriyasirikul said the regulator originally allotted 74 radio frequency ranges for auction. However, one of them had no bidder and another two saw interested bidders fail to place bank guarantees for the auction.

"The NBTC office will ask the board to find a solution for these three radio frequency bands. They could be put up for new auction or allocated for public use," Mr Trairat said.

A mock auction was held yesterday at the Centra by Centara Government Complex Hotel & Convention Centre in Chaeng Watthana.

A total of 30 companies are scheduled to participate in the bidding on Monday, including state-owned broadcaster MCOT, which will contest for 55 frequencies -- the largest amount among contestants.

Under the auction, eight frequency ranges will be allotted for Bangkok, six for the Central Plains, 16 for the North, 20 for the South and 21 for the Northeast.

The starting bid prices for eight frequencies allotted for Bangkok are in the range of 36.3-54.8 million baht, depending on frequencies. In other regions, starting bid prices range from 105,000 baht to 3.19 million baht.

A 60-minute timeframe is set for each frequency auction. Participants must place their first bid within five minutes, or else they will be eliminated and have their bank guarantees confiscated.

If more than one bidder place equal bid prices, another five minutes of a new auction round will be held.

If no one offers higher bid prices, lucky draws will be held to select the winner.

The bid winners are obliged to pay for frequency licences by March 24. A licence term is seven years.

The 106.5-megahertz frequency allocated for Bangkok is quoted with the highest starting bid price in the country at 54.8 million baht. GMM Media Plc is the only contender for the frequency allotted for the capital. In Bangkok, each of the eight frequencies has only one bidder.

The 98.5MHz frequency allotted for Khon Kaen is expected to see the most intense competition with six contestants -- the highest number of participants in the country.

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