Don’t Get Too Excited on “Telco Stocks,” They Might Have to Pay the Same for 5G Licenses!

The bullish stocks in the ICT sector yesterday seemed to be speculating on the news of the Thai government proposing to relax the installment for 5G license to relieve the burden from Covid-19 impact.

 

On March 25, 2021, True Corporation Public Company Limited (TRUE) closed at ฿3.54/share, increased ฿0.28/share or 8.59% with a trading value of 2,380.42 million baht.

Total Access Communication Public Company Limited (DTAC) closed at ฿33.25/share, increased ฿0.75/share or 2.31% with a trading value of 557.73 million baht.

Advanced Info Service Public Company Limited (ADVANC) closed at ฿173.50/share, increased ฿2.50/share or 1.46% with a trading value of 2,662.76 million baht.

Lastly, Intouch Holdings Public Company Limited (INTUCH) closed at ฿57.25/share, increased ฿0.50/share or 0.88% with a trading value of 680.50 million baht.

 

The news stated that the Thai Prime Minister Prayut Chan-o-cha addressed the issue to the National Broadcasting and Telecommunications Commission (NBTC) to consider and re-present to the committee at a later date.

 

However, the source close to the Thai PM and the Ministry of Defence of Thailand as a Chairman of the Digital Council of Thailand meeting revealed to “Kaohoon Online” that the Thai PM did not directly address NBTC to consider the relax measure, but the issue was raised by TRUE’s executive as the Covid-19 outbreak might have slowdown corporates performance, which might affect their capability on paying the installment of 5G licenses.

After hearing the issue, the Thai PM addressed NBTC to weigh the issue for further consideration. The move and expectation are still far from happening due to a long-listed process for in-depth consideration, the source added while affirming that this was not an order to consider the relaxation, but a request to consider the possibility.

 

The winners to acquire 700MHz spectrum to develop 5G network are AIS and CAT. acquiring 1 license with a bidding value of 17,154 million baht and 2 licenses with a bidding value of 34,306 million baht, respectively. The payment will be split into 10 installments.

As for the 2600MHz spectrum, AIS acquired 10 licenses with a bidding value of 19,561 million baht and TRUE acquired 9 licenses with a bidding value of 17,872 million baht. The payment will be split into 7 installments.

The 26GHz has a total of 26 licenses. AIS acquired 12 licenses with a bidding value of 5,719 million baht. TRUE acquired 8 licenses with a bidding value of 3,827 million baht. TOT acquired 4 licenses with a bidding value of 1,920 million baht and DTAC acquired 2 licenses with a bidding value of 974 million baht. The payment condition is a one-time payment in which all operators had already made the payment.