The Next Step of Thailand's Telecommunications Market Post-Spectrum Auction

In the spectrum auction held on June 29, 2025, both AIS and True acquired the rights to the same frequency bands they previously leased from NT, ensuring the continuity of their quality service.

The National Broadcasting and Telecommunications Commission (NBTC) organized the auction for frequency bands with concessions expiring in 2025. These include the 850 MHz, 2100 MHz, 2300 MHz, and 1500 MHz bands. Only two bidders participated in the auction:

1. True successfully secured two bands: 2300 MHz band (70 MHz), previously leased from NT, as well as the 1500 MHz band (20 MHz).

2. AIS, which won the 2100 MHz band (30 MHz), also formerly leased from NT.

The outcome of this auction allows both operators to maintain their current service quality by transitioning from leasing from NT to directly holding concessions for those frequency bands.

The transition from leasing to direct concession ownership by service providers will help reduce long-term spectrum costs and enhance opportunities for investment in future technologies.

The acquisition of direct spectrum concessions provides a significant financial advantage to providers by reducing annual spectrum cost from previous lease payments of 3.9 to 4.5 billion baht per year to an average annual license fee of approximately 0.99 to 1.7 billion baht over a 15-year term, depending on the winning bid price. This cost reduction will enhance investment opportunities aligned with the providers’ strategic plans, which prioritize upgrading network efficiency and innovation. Key areas of focus include the integration of AI to optimize network performance and efficiency, upgrading the network to 5G-Advanced to improve service stability, developing new digital services and applications such as augmented and virtual reality (AR/VR) and smart devices, as well as preparations for the future adoption of 6G technology.
 

However, Unallocated frequency band could limit consumers' access to higher-quality services in the future. Furturemore, the relatively low auction proceeds may affect the government’s plans for national digital infrastructure development. The lack of bidding interest of the 850 MHz and 1500 MHz frequency bands may result in missed opportunities for consumers to benefit from higher-quality services enabled by characteristics of these bands—such as improved 5 speeds and more stable connectivity in remote areas. Furthermore, the resulting low auction proceeds could impact the national digital infrastructure development plan, as revenue from spectrum auctions is a key source of funding for enhancing the country’s digital competitiveness.
 

Government policies that actively promote market competition are essential for delivering tangible benefits to consumers and driving the long-term development of the country’s digital technology.

Thailand’s current telecommunications market, a duopoly with only two major providers,
has limited consumers choice and diminished price competition. Therefore, designing policies to restore competition pressure presents a significant challenge for the government. Key policy considerations include:

1. Supporting the entry of Mobile Virtual Network Operators (MVNOs) to increase market participation;

2. Implementing robust regulations on pricing and service quality, such as setting minimum standards for service packages (price, data, and speed) that are benchmarked against providers’ cost structures and spectrum characteristics

3. Strategically reviewing the parameters for future auctions (e.g., bands, allocation sizes, reserve prices) to ensure alignment with market conditions, service providers’ network development plans, and the national digital economy development strategy.