Thailand's mobile spectrum auction - a nexus of regulatory failure, corporate non-compliance, and governance crisis.

The upcoming multi-spectrum auction in Thailand, orchestrated by the National Broadcasting and Telecommunications Commission (NBTC), has become a focal point for intense scrutiny, exposing a complex web of regulatory failures, corporate non-compliance, and a deepening governance crisis.

While the promise of enhanced connectivity beckons, a critical question lingers: can the NBTC effectively manage the allocation of these valuable resources for the best interest of the people when it has demonstrably failed to enforce its own regulations?

Specifically, the NBTC's decade-long inaction regarding mandatory access to Mobile Virtual Network Aggregators (MVNAs) and Mobile Virtual Network Operators (MVNOs) casts a long shadow over the integrity of the auction process.

Additionally, True Corporation (TRUE) has yet to come under scrutiny for not fulfilling its merger conditions, including ensuring fair access to MVNOs, raising questions about its eligibility to participate in the auction.

As if regulatory failures and corporate non-compliance weren't enough, the NBTC itself is facing a deepening governance crisis.

Therefore, allowing the auction to proceed under these circumstances would only reinforce market monopolization and regulatory failure and thus it should be cancelled.Over a decade ago, the NBTC introduced regulations mandating that spectrum license holders provide wholesale access to MVNAs and MVNOs. These entities, which lease and pay for network capacity from existing mobile operators, are crucial for diversifying the market and offering consumers more choices, innovative services and competitive pricing.

However, despite these regulations, the mobile network operators AIS, TRUE, and DTAC have not hosted a single MVNO on their networks, and the NBTC has consistently failed to enforce these regulations.

This lack of enforcement has now created a situation where AIS and TRUE hold significant market power, stifling competition and limiting consumer choice.As part of the spectrum auction, the NBTC will recall the 850MHz, 2100MHz and 2300MHz spectrum used by the state enterprise mobile operator, National Telecom (NT), leaving it with only 5Mhz bandwidth on the 700MHz range.

NT has been the only mobile network operator to ever host MVNOs in Thailand. However, having to return its spectrum, NT announced earlier this year that it will no longer be able to support MVNOs.

This directly affects at least 20 MVNOs and aspiring MVNO license holders. These companies, ranging from small startups to larger enterprises, have invested in technology, marketing, educating local talent, and contributed to the economy through tax payments and fees to the NBTC; yet they are now unable to operate their business, despite fulfilling their side of the requirements in the licenses.

For more than a decade, the NBTC has kept selling these licenses and demanded that the applicants live up to various terms and regulation - without making sure MVNA/MVNOs could actually launch their business. Imagine this happening in any other sector or country.

The lack of access to the networks of the two largest players has severely limited the growth of the MVNO sector in Thailand, and this has now resulted in a market characterized by highly limited consumer choice, higher prices and an increase in complaints about lack of quality of service.

The NT spectrum crisis underscores not only the urgent need for a transition but also highlights the systemic anti-competitive practice that have hindered the digital economy investment and growth in Thailand for years.

Thailand's economic growth is now considered to be among the slowest in the region, ranking at the bottom with only Myanmar being worse.

While the government is trying to attract foreign investment, the regulator is going in the opposite direction, getting ready to further solidify the power of the duopoly this year by holding a spectrum auction just for AIS and TRUE.The participation of TRUE in the upcoming auction raises further critical questions, particularly concerning the fulfillment of both its license and merger conditions.

On November 22, 2021, Telenor and Charoen Pokphand Group announced a merger between TRUE and Total Access Communication (DTAC).

On October 20, 2022, the merger between TRUE and DTAC was “acknowledged” by the board of the NBTC. After a 3:3 split vote, the chairman of the NBTC, added a second vote to end the deadlock, thereby voting 4:3 in favour of “acknowledging that the NBTC did not have the power to nay a merger”, and thereby de facto approving the merger.

Since then, the NBTC board has been split into two groups with the NBTC office, as a third wheel. This has resulted in major delays, lack of decision making, and the postponement of several board meeting agenda items for more than a year.

The NBTC did issue a small set of merger conditions on TRUE, including that the merger ensured access to MVNOs (the same, as it had already mandated but never enforced), as well as a 12% price reduction on the average retail pricing.

However, 2 years have now passed since the merger took place and TRUE has yet to fulfill these conditions, despite both MVNA and MVNOs having officially requested access.

But while TRUE says it has expressed “openness to accommodating MVNOs”, it has so far just been talks and delays and nothing has materialized on this.

This rhetoric of “openness to accommodating MVNOs” is particularly intriguing given two crucial factors:

1. Regulatory Obligations: TRUE’s licenses explicitly mandate the company to provide capacity to MVNOs, a legal obligation it cannot simply ignore.
2. Merger Conditions: More importantly, TRUE has been under a regulatory order for over 2 years now to open its network to MVNA/MVNOs, as a condition of its merger approval. This legally binding condition further underscores the urgency and necessity of fulfilling its commitment

The NBTC's failure to enforce these merger conditions underscores its ineffectiveness in regulating the telecom industry, and raises significant concerns about market fairness and competition.

The mobile network operator’s failure to meet both license and merger conditions should disqualify them from participating in any upcoming spectrum auctions. Allowing them to bid for additional spectrum without fulfilling prior obligations would set a dangerous precedent, showing that regulatory mandates can be ignored without consequence

The NBTC must demonstrate its commitment to holding all operators accountable before allocating further resources.Beyond regulatory failures and corporate non-compliance, the NBTC faces a deepening governance crisis. The legitimacy of the NBTC's leadership, particularly that of its chairman, has been called into question.

The Senate’s Information and Communication Technology Commission determined that the NBTC chairman lacked the necessary qualifications. Despite this ruling, the chairman continues to hold office, undermining the legitimacy of the NBTC’s decisions, including spectrum auctions and regulatory approvals.

Furthermore, allegations of judicial and political interference, as well as accusations of "state capture" by monopolistic corporate interests, have surfaced.

On March 8, 2025, Metha Maskhao, Coordinator of the Economic Democracy Network and Acting Secretary-General of the Campaign for Popular Democracy (CPD), summarized key issues at a public forum titled “Monopoly Capital and State Intervention: Dissecting the NBTC and Proposals from Civil Society.”

Key concerns raised include:

1. Judicial and Political Interference: A legal case, giving 2 years prison to NBTC’s Broadcasting Commissioner and Board member, Dr. Pirongrong Ramasoota for her actions in relation to TRUE ID, has been criticized for potential political bias and state capture, raising concerns about politically motivated legal actions (SLAPP laws) designed to silence critics and manipulate regulatory decision-making.
2. Monopoly Influence and State Capture: There are allegations that monopolistic corporate interests have infiltrated the NBTC, influencing key decisions such as approving major telecom mergers. The current NBTC board has been accused of approving large corporate deals that undermine fair competition and public interest.
3. NBTC Chairman’s Lack of Qualifications: The Senate’s Information and Communication Technology Commission determined on May 28, 2024, that the NBTC chairman lacked the necessary qualifications. Despite a clear ruling, the chairman continues to hold office, undermining the legitimacy of the NBTC’s decisions, including spectrum auctions and regulatory approvals.
4. Prime Minister’s Responsibility: Under Section 20 of the NBTC Act, the Prime Minister is required to act upon legal determinations regarding NBTC leadership qualifications. However, despite evidence and multiple petitions from civil society, no action has been taken. If left unaddressed, this inaction could be grounds for legal consequences under Section 157 of the Criminal Code for dereliction of duty.

The court decision against NBTC board member, Dr. Pirongrong Ramasoota is by many expected to put a damper on her board activities and decision making in cases involving TRUE. This means that the remaining six board members may end up on 3:3 split votes with the Chairman having the option to use his extra vote to eliminate the deadlock.

The same chairman who used his extra vote to indirectly give TRUE/DTAC the green light to merge, and the same chairman which the Senate Committee defacto fired 8 months ago.

Questions have also been raised regarding the NBTC's telecom commissioner focusing only on AIS and TRUE

In response to comments from AIS and TRUE, regarding the starting price for the upcoming spectrum auction, Mr. Sompop Purivigraipong acknowledged that he personally agreed with them, that the price might be to high.

However, what stood out was the complete lack of response to all the other concerns raised by other stakeholders and the public during the public hearing on the spectrum auction.

No mention of network access to mobile virtual network aggregators (MVNA) and operators (MVNO), the opposition against the proposed “Thailand Independent Market Operator (TIMO)” theory, the lack of NBTC enforcing its own regulations, and that holding a simultaneous multi-band auction will solidify the current stagnant market structure for another 15 years.

A more balanced approach is needed—one where all stakeholders, not just the largest players, have their voices heard.

If NBTC wishes to foster a competitive and fair telecom industry, it must take a more impartial stance, enforce its own existing regulations, and ensure that the upcoming auction creates opportunities for all market participants, not just the incumbents.Thailand’s Consumers Council (TCC) has also expressed deep concerns about the NBTC's regulatory shortcomings.

They argue that the failure to enforce existing regulations undermines consumer rights and erodes trust in the regulatory body. Allowing the NBTC to proceed with a spectrum auction without addressing these past failures sends a dangerous message that regulations can be disregarded with impunity.

The TCC emphasizes that a fair and competitive market is essential for ensuring affordable and high-quality telecommunications services for all Thai citizens.

Skyrocketing service fees, disappearing budget packages, and inconsistent network quality are the direct results of the duopoly market.

Thailand’s Consumer Council's recently held the forum "Telecommunications Merger: Benefit or Burden for Consumers?" marking the two years anniversary of the TRUE/DTAC merger. At the forum the following question was raised: Where is the NBTC's oversight, and why are vital competitive alternatives like MVNOs) and the state enterprise telecom operator National Telecom (NT) being sidelined?

Economic and law professors at the forum stressed the importance of promoting MVNOs as a means to introduce competition and provide consumers with more choices.

Furthermore, National Telecom (NT), a state-owned enterprise, was identified as a potentially competitor at the forum. However, NT's ability to effectively compete, is hampered by having to return its mobile spectrum, lack of a sustainable business plan and a lack of government support.Before proceeding with the spectrum auction, the NBTC must prioritize regulatory reform and address the governance crisis. This includes:

• Enforcing Mandatory Access for MVNAs and MVNOs: The NBTC must take concrete steps to ensure that established operators comply with the regulations and provide fair and transparent access to their networks.
• Conduct a Thorough Review of TRUE's Merger Compliance: The NBTC must publicly disclose the findings of its reviews and take appropriate action if TRUE is found to be non-compliant.
• Strengthening Consumer Protection: The NBTC must work closely with the TCC to enhance consumer protection and ensure that all telecommunications services are affordable and accessible.
• Ensure Transparency and Address Leadership Issues: Before making further regulatory decisions, the NBTC must resolve the questions surrounding its leadership and the allegations that monopolistic corporate interests have infiltrated the NBTC, influencing key decisions..

Without these corrective measures, any new spectrum auction will only serve to entrench existing monopolies rather than fostering a more competitive telecom market.

The NBTC's failure to enforce its own regulations has contributed to Thailand's stagnant and monopolistic telecom market. Given its track record of failing to enforce existing regulations, the NBTC should not be permitted to conduct another spectrum auction until it rectifies these issues.