Thailand’s 4G expansion was thrown into disarray yesterday after a telecom company that beat more established rivals at an auction last year failed to meet its first payment deadline, voiding the bid.
The failure is a blow to the country’s junta, which had earmarked money from the lucrative auctions for use in key infrastructure projects and helping farmers, many of whom are reeling from low commodity prices and an ongoing drought.
Jasmine International, a new entrant in an already saturated market, surprised many observers in December when it offered an eye-watering 75.7 billion baht (US$2.1 billion) for one of two slots being offered on the 900MHz waveband.
The company’s share price swiftly dived after the auction, with many analysts fearing it would not be able to meet the steep price tag.
Those predictions proved true yesterday when regulators confirmed the group had missed the deadline for payment of the first instalment of 8 billion baht.
“The time for payment has expired,” Thailand’s National Broadcasting and Telecommunications Commission secretary-general Takorn Tantasit told reporters, adding that a fresh auction must now be held.
Jasmine would also forfeit an US$18 million deposit it had put down after the bid, he said.
Local reports said that the company had tried and failed to get the cash from Chinese and South Korean investors who balked at the price it paid at auction.
Jasmine did not answer calls for comment. Like many Southeast Asian nations, smartphone use has boomed in Thailand, with many using mobiles as the main way to access the internet.
However, many have complained that the kingdom’s 4G rollout has been slow, with auctions delayed by the 2014 coup and sky-high winning bids that analysts say will have to be absorbed by users.
One less competitor would likely result in “less choice and higher prices for consumers,” said Cheryl Tan, regional telecoms analyst for BMI Research.
The mobile industry in Thailand is dominated by market leader AIS, followed by DTAC — mostly owned by Norway’s Telenor — and True, part of the sprawling CP conglomerate.
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