Thailand’s telecoms regulator has said competition for the forthcoming 3G spectrum auction will be healthy as operators vie for preferred frequency slots in the 2100MHz band, reports the Bangkok Post.

Nine slots of 5MHz each will be auctioned on 16 October, with each slot having a reserve price of THB4.5 billion (US$145.7 million), according to the National Broadcasting and Telecommunications Commission (NBTC).

The auction will have two stages with operators first competing for licences before positions on the spectrum slots are allocated. The regulator said the highest bids will get priority when choosing frequency slots. Slots with low levels of interference will be preferred, according to NBTC vice-chairman Col Settapong Malisuwan, as they allow for better quality of service.

According to Total Telecom 15 bidders have indicated their interest in taking part in the auction.

However, the Thailand Development Research Institute (TDRI) has expressed concern that the reduction in the maximum amount of spectrum bidders can win from 20MHz to 15MHz could stifle competition.

The three main local operators – AIS, DTAC and True – could potentially bid for the full 45MHz of spectrum available by bidding for the maximum allowance each, leaving no room for rivals. If the maximum slots were 20MHz, operators could bid for more slots than others, pushing up prices.

The TDRI also feels that the country will receive less income than it could from selling the spectrum if it sticks with the reduced spectrum allowance.

The NBTC lowered the maximum frequency allowance after a public hearing suggested too much competition could lead to excessively high prices, with operators passing the costs onto customers.