Committee formed to probe on Thailand's 3G auction

BANGKOK, October 27 (TNA) - Thailand's National Broadcasting and Telecommunications Commission (NBTC) has set up a 10-member subcommittee to investigate last week's auction of 3G licences over an alleged price collusion and the violation of the country’s procurement law. NBTC Secretary-General Thakorn Tantasit confirmed that his agency has ordered the setting of the subcommittee to probe on prices offered by the three winning bidders in the October 16- auction, including Advanced Wireless Network under Advanced Info Service (AIS), DTAC Network under Total Access Communication (DTAC) and Real Future under True Corporation (True), before the licences are issued to them. The subcommittee has 15 days to complete their investigation and the probe will be submitted to the NBTC for its further consideration; while the winning bidders have all paid their first installments for the 3G licences. The move followed criticisms that last week's auction was uncompetitive with too low revenues offered to the state while the total bidding value was at only 2.8 per cent higher than the starting prices set by the NBTC at 40.5 billion baht for nine separate licences. The total bids were 41.65 billion baht and six licenses were auctioned at the floor price of 4.5 billion baht each. Thailand Development Research Institute (TDRI) President Somkiat Tangkitvanich has charged although the general public will have access to the 3G network from next year, the damages incurred by the state and taxpayers are estimated at 16.34 billion baht.(TNA)