For mobile operators, the spectrum price is the factor affecting their network investment in an early phase. To say, a reasonable price will help operators to expand their network as planned and be able to set 5G package at a reasonable level. This will also help bolster 5G adoption rate going forward.
EIC assessed the spectrum price for 5G technology development and divided the estimation into 3 scenarios;
1) The spectrum license price around THB 110-130 billion — similar to that of 700MHz bandwidth allocation — with adoption rate expected at around 60% of total postpaid subscribers after the 5th year of 5G rollout,
2) The license price between THB 30-40 billion based on the prices of mid-band spectrum licenses in ASEAN countries, with adoption rate of 70%, and
3) The license price more than THB 200 billion — 50% of mid-band spectrum license price during a highly competitive 1800MHz bandwidth auction in 2015 — with adoption rate of around 50%.
A reasonable spectrum price is, therefore, a key concern for NBTC as it needs to balance between government benefits from the spectrum license fee and affordable price for mobile operators.
The price will attract investment in 5G network which enables a better and faster data communication in wireless transmission capabilities, and will then benefit the Thai economy in the long term perspective.
About the author
EIC or Economic Intelligence Center, a unit of Siam Commercial Bank Public Company Limited, is established to provide business executives with valuable insights for effective decision making.