Thailand’s telecom sector witnessed a subdued round of bidding in its recent spectrum auction, held by the National Broadcasting and Telecommunications Commission (NBTC) on Sunday, June 29, 2025. The event saw limited competition among industry heavyweights, with True Corporation Public Company Limited (SET: TRUE) and Advanced Info Service Public Company Limited (SET: ADVANC or AIS) securing essential frequencies to bolster their coverage and capacity.
True emerged as the auction’s dominant bidder, acquiring licenses for both 2300MHz (an existing band) and the newly released 1500MHz spectrum for a combined expenditure of THB 26.42 billion. AIS, meanwhile, focused solely on retaining its 2100MHz frequency, bidding THB 14.85 billion. Notably, the final prices stood 10% above the reserve levels for the 1500MHz and 2100MHz bands, and 20% higher for 2300MHz. In total, private sector spending on these three key bands reached THB 41.2 billion.
From an analyst perspective, the outcome presents an upside for AIS, which spent less than initially anticipated—THB 14.85 billion compared with the original expectation of THB 29.17 billion, as it refrained from acquiring new spectrum. True, on the other hand, faced higher-than-estimated costs of THB 26.42 billion, surpassing earlier forecasts of THB 18.17 billion, due to its strategic bid for the 1500MHz band.
Payment terms have been structured for manageability: operators will pay 50% of their committed price at least a week before receiving their licenses, 25% after three years, and the final 25% after four years. With moderate auction prices and staggered installments, Kiatnakin Phatra Securities (KKPS) does not expect a significant impact on the debt ratio or dividend payouts for either ADVANC or TRUE.
Both operators stand to benefit from cost savings on their spectrum usage. TRUE and ADVANC, currently paying sizable annual usage fees for 2100MHz and 2300MHz, could see cost reductions once the new licenses are effective in early August 2025. KKPS estimates AIS will save THB 2 billion annually, while TRUE could realize nearly THB 4 billion in yearly savings. On these grounds, the broker maintains its ‘Buy’ recommendations for both stocks, citing healthy earnings prospects and reliable yields, particularly for AIS.
The latest auction has further tilted the balance in spectrum holdings. Post-auction, TRUE boasts a total of 340MHz in spectrum (excluding the 26GHz band), compared to AIS’s 260MHz. While both have equal access to 60MHz on the lower band, TRUE dominates the mid-band with 280MHz versus ADVANC’s 200MHz. KKPS notes that although AIS’s spectrum should meet its needs for the next few years, closing the gap with TRUE may require more aggressive participation in future auctions. TRUE’s acquisition of the 1500MHz, according to KKPS, signals a shift towards emphasizing network quality over pricing battles.
