Thai telecoms regulator approves draft 3G terms

BANGKOK, Sept 9 (Reuters) - Thailand's telecommunications regulator approved draft procedures for long-awaited auctions for third-generation (3G) mobile phone service licences on Wednesday, which means 3G could be available from the second half of 2010.

The auctions for 3G licences on the new 2.1 GHz spectrum will take place by the end of this year, possibly allowing the National Telecommunication Commission (NTC) to issue licences in early 2010, Prasert Apipunya, its deputy secretary-general, said.

The NTC will hold a public hearing on Sept. 28 to invite related parties to share opinions on the 3G licensing, he told reporters after a board meeting.

The 3G licensing is a key step in reforming the $4.7 billion sector as it will change the way operators pay regulatory fees and lead to a reduction in costs.

Under the current concession system, operators pay a portion of their revenues to state-owned firms for the use of networks, even though they have built these networks themselves. And the networks become state property once the concession expires.

In contrast, the operators will pay fixed fees for 3G licences, which should work out much cheaper. Analysts expect the equivalent of 7-8 percent of revenue, versus 23-25 percent for existing networks.

The 3G licences, which will enable operators to tap new revenue through music, video, picture and data services, have been delayed for several years by political obstacles. ($1 = 34.00 Baht) (Reporting by Pisit Changplayngam; Writing by Khettiya Jittapong; Editing by Alan Raybould)