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Tuesday, February 18, 2025

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NT to End Spectrum Allocation for Mobile Virtual Networks

Telecom state enterprise National Telecom (NT) will cease allocating spectrum capacity to mobile virtual network operators (MVNOs) as its rights to the 850MHz, 2100MHz, and 2300MHz spectrum bands are set to expire at the end of August 2025. The decision impacts MVNOs that rely on NT’s network to provide mobile services.

Following the expiration of these bands, NT will retain only the 700MHz spectrum, which it secured through an auction in 2020. The company has opted not to participate in the National Broadcasting and Telecommunications Commission’s (NBTC) upcoming auction of six spectrum ranges, scheduled for April 2025.

Many MVNOs face financial difficulties, struggling to cover service fees and high roaming costs associated with leasing networks from other providers. NT President Col Sanphachai Huvanandana stated that the company will exit the MVNO market once the current contracts expire. Currently, NT has agreements with five MVNOs, serving a combined customer base of just over 100,000 subscribers.

Regulatory challenges remain a key concern for the sector. Col Sanphachai emphasized that if the NBTC aims to support MVNOs, it should implement fair regulations on roaming charges, similar to interconnection fees imposed on major mobile operators.

NBTC Commissioner Somphop Purivigraipong acknowledged the financial strain on MVNOs, noting that the business model has struggled since the merger of state telecom entities TOT and CAT Telecom into NT in 2021. As MVNOs search for alternatives, some are exploring deals with other network providers.

A potential solution under discussion is the introduction of mobile virtual network aggregators (MVNAs), which purchase wholesale network services from major telecom operators and resell them to MVNOs. However, regulatory constraints complicate efforts to enforce price controls on roaming fees, leaving negotiations largely in the hands of the industry.

The NBTC is set to hold a public hearing on February 6 regarding the planned spectrum auction, during which the MVNA model will be presented as a possible way to maintain competition in the market.

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