Brokerage assesses impact of firms' slated auction bids

Advanced Info Service (AIS) is expected to allocate 29.7 billion baht to acquire the 2100MHz band and a partial stake in the 2300MHz band from the auction scheduled for next month, while True Corporation is expected to spend 19.7 billion baht to acquire a partial stake in the 2300MHz band.

- KOMSAN TORTERMVASANA

According to Pisut Ngamvijitvong, senior equity research analyst at Kasikorn Securities, the company’s calculations indicate the winning bid prices for the 2100MHz and 2300MHz bands will be 33 million baht per MHz a year.

This represents a 10% premium over the reserve price of 30 million baht per MHz a year for the 2100MHz band, and a 90% premium over the reserve price of 17.3 million baht per MHz a year for the 2300MHz band.

Kasikorn Securities also estimated the net present value of spectrum cost savings at 5 baht a share for AIS and 2 baht a share for True.

These companies are the only two businesses to have submitted proposals to participate in the mobile spectrum licence auction.

The National Broadcasting and Telecommunications Commission (NBTC) plans to auction four spectrum bands on June 29: 850MHz, 1500MHz, 2100MHz and 2300MHz.

EFFECTS ON EBITDA

On Aug 3, National Telecom's (NT) spectrum licences granted by the NBTC on the 850MHz band (2x15MHz bandwidth), 2100MHz band (2x15MHz), and 2300MHz band (1x60MHz) will expire.