Another Thai state firm aims to block 3G auction

BANGKOK, THAILAND: Thai state-run telephone firm TOT Pcl will ask a court on Friday to block a long-awaited auction for third-generation mobile licences due to start on September 20, the second such request by a state company.

The Central Administrative Court has accepted to hear a request by another state firm, CAT Telecom Pcl, into whether the telecoms regulator has the authority to issue 3G licences.

Like CAT, TOT will also ask the court to order a temporary halt to the 3G auction, a senior TOT official told Reuters on Thursday, adding that TOT would be damaged by the 3G licensing process.

The court is expected to decide shortly whether to suspend the auction in line with CAT's request.

The telecoms regulator plans to hold the 3G auction on September 20-28. The introduction of 3G has already been delayed for years in Thailand, in large part because of political turbulence.

The introduction of 3G, bringing a change in the way operators pay fees to the government, is seen as a crucial step in reforming the $4.7 billion sector and could pave the way for foreign players to grab a bigger slice of the industry.

Shares in Thai telecoms stocks have risen sharply in recent months as the introduction of 3G should lead to lower regulatory costs.

Under existing concessions, operators pay about 25-30 percent of their revenue to state companies like TOT or CAT Telecom. That compares with about 6 percent under the 3G licensing scheme.