Competitiveness: Thailand’s 3G Drama; “A Failure of the Thai Way?”

/ October 17, 2012

  • By Pooky, Thai Intel’s economics journalist

Just briefly, Thailand‘s attempt to have a proper 3G or third generation mobile phone system, not a system string together by technicalities like the limited service now, have been going on for about 4 to 5 years now.

  • So long in fact, even Laos and Cambodia now have 3G system.

Is this a failure of the “Thai Way?”

Yesterday, the Thai telecom regulator held a bidding for frequencies for a proper 3G system, after a lone person petitioned the court to stop it. The court decided not to block the auction and thus, again, the auction took place.

Today, on the front page of most newspaper, a day after the auction, is about how low the price of 3G frequency auction, received.

More legal challenge expected, reported many local press.

  • As in the past 4 to 5 years, every time, the attempt for Thailand to have a 3G failed, if was often, like currently, about the legality of the process of setting a Thai 3G system.

Picking up a local stock market newspaper, Khao Hun, the other day, was an article how stock broker research house, expects E-Commerce and Content related business to boom in Thailand, with a proper and widespread 3G. Then Khao Hun also said the investment in 3G infrastructure and the up-keep of the system, will be US$ billions more.

  • “An effective 3G system would mean 1,000s of new jobs and generate billions of baht in new businesses, for many old and new industries,” Khao Hun, quoted a researcher at a broker.

Clearly, what the Thais is focusing on, is winning the battle, meaning a 3G system, that benefits the state most. Benefiting the state most, here, meaning, a bidding that generates a high price for the state. In deed, some data says, the current price Thailand fetch from the selling of the 3G frequency, is about a third less than comparable price other countries received.

  • However, the “War” that Thailand clearly is loosing, is the “War in Opportunity Cost.”

while the debate in Thailand, focus on that about one-third less price the state received, there is no question about it, the lack of a proper 3G system, for the past 4 to 5 years, have cost Thailand perhaps US$ billions in opportunity costs.

Non-cconomically, but social wise, about 10 years ago, Thailand’s far right-wing research unit, TDRI, came out to say that it was against Thaksin’s Village Fund, because it suspected, some villagers went using the money to buy “Mobile Phones”

  • TDRI said then, quote: “Poor people does not benefit from mobile phone.”

Off course, TDRI could not be more wrong, and the United Nations study subsequently, found that mobile phone, do indeed benefit the poor for many reasons. With widespread 3G, one benefit is that “Smart Phone” and content, could be more popular with the poor, spreading knowledge.

As many Thais, like TDRI, are looking at the 3G auction price, as not maximizing value to the state, as the “Battle Call,” clearly, there is another concern and that is about “The Wider War.”

So far, Thailand have lost the “War” to move up to 3G and the “Opportunity Cost” of “Loosing that War” to Thailand, is immense.

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