Tuesday, September 8, 2015

Thailand 4G Auction Will Result in Some Spectrum Inefficiency

Thailand’s auction of fourth generation spectrum has gotten more complicated. The National Broadcasting and Telecommunications Commission (NBTC) had hoped to auction 30 MHz of spectrum in the 1.8-GHz band, but now will allocate only 25 MHz.

As a result, two licenses, each of 12.5-MHz bandwidth, will be made available, instead of two allocations of 15 MHz each.

CAT Telecom also has withdrawn from the auction, a move required because it could not secure a required foreign partner

The problem is that the remnant 2.5 MHz of spectrum might be difficult to wring value from, as Long Term Evolution networks are channelized in 5 MHz increments. In the intended former plan, a carrier might have allocated 10 MHz in one direction, 5 MHz in the other direction.

If I understand the channelization plan, 5 MHz channelization will be the norm, with a remnant 2.5-MHz available in one direction, with a separate carrier. How efficient that might be is a question many would have. Large contiguous blocks of spectrum are most efficient. Small non-contiguous blocks of spectrum tend to be the least efficient.

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