True, Jasmine win Bt151.95 billion 4G auction

Market expectations were for the country's two top mobile firms, Advanced Info Service Pcl (AIS) and Total Access Communication Pcl (TAC) to win the bid.

Thailand's $6.7 billion mobile market is dominated by the top three players -- AIS, TAC and True Move, a unit of True Corp -- and analysts expect competition will intensify now that Jasmine has won a licence to become the fourth operator.

Analysts said the high level of the bids could put pressure on True and Jasmine's financial position, which could increase the risks of an equity issue.

Before the bidding closed on Friday, shares in Thailand's telecoms sector slid to a three-year low as investors focused on the cost of 4G mobile licences and the possible entry of a new player that could spark a price war.

The 4G auction is considered a major step in supporting the government's digital economy policy, which is expected to receive 232 billion baht ($6.42 billion) from the two sets of auctions held in November and this week.

True, 18 percent owned by China Mobile and controlled by billionaire Dhanin Chearavanont's Charoen Pokphand Group, offered prices at 76.3 billion baht, while Jasmine bid at 75.65 billion baht, the regulator said.

After bidding process, which took 65 hours, the bids were nearly six times higher than the value of the spectrum and almost double the winning bids in the previous auction, the National Broadcasting and Telecommunications Commission (NBTC) said.

AIS, 23 percent owned by Singapore Telecommunications Ltd , and True won bids worth combined 80.78 billion baht in November's auction.

AIS, which has the largest subscriber base, needs a new licence to expand coverage after it lags behind rivals on 4G services, while TAC wants a licence to reduce its costs and to stop True from gaining market share.