The clarity of National Telecom’s (NT) 5G investment plan is expected to be seen by the end of this year as the company finds ways to end uncertainty over its business outlook.

NT, which was formed by the merger of CAT Telecom and TOT in January, paid the first installment of the 700 megahertz spectrum license fee in March. The first installment cost 3.6 billion baht.

The 700 MHz band was obtained through CAT Telecom, which won the license at the 5G spectrum auction in February last year. 5G investment plans have yet to emerge from NT.

Now, returning the 700 MHz range to the National Broadcasting and Telecommunications Commission (NBTC) has become one of three options for NT to consider.

Chaiwut Thanakamanusorn, Minister of Digital Economy and Society, told the Bangkok Post that NT can no longer prolong the ambiguity of its 5G business plan as this would seriously affect its future commercial roadmap.

According to Chaiwut, NT’s board and management may need to consider three options for 5G investments.

First, NT may need to run 5G services through its own brand and work with other parties on marketing activities.

Second, the company can sell much of its 5G spectrum capacity to other mobile operators through partnership agreements and keep some for social and public services.

Finally, NT could have to discuss with the NBTC concerning the return of its 700MHz band for reallocation.

“If NT decides to return the spectrum to the NBTC, it wouldn’t be strange or impossible to do,” Mr. Chaiwut said.

The return of spectrum to the NBTC can be done as part of a “benefit to the state” deal.

The resolution on strategic 5G activities belongs to NT’s board of directors, Chaiwut added.

But Sutisak Tantayotin, deputy general secretary of the NBTC, stressed that existing NBTC regulations do not allow licensees to return spectrum to the regulator without consequences.

If the regulator reorganizes the auction but sees no one participating, NT will have to pay a fine and make the payments.

The two slots on the 700MHZ range that NT secured in last year’s auctions cost 34.3 billion baht.

Mr. Sutisak stated that if the new auction is organized and the winning price is lower than the previous auction, the price difference will be charged to NT.

He said section 30 of the amended NBTC law allows licensees to sell spectrum rights to others. However, the subordinate legislation regarding such a condition has not yet been published in the Royal Gazette.

NT is in talks with Advanced Info Service and True Move H Universal Communication on a partnership project to invest in NT’s 700 MHz band with their networks and cell stations. However, the talks have not yet reached the final stage.

A source on NT’s board of directors said that a feasibility proposal from NT’s management for the 5G business is still not convincing in the eyes of the board.

The proposal involves 20 to 30 billion baht in capital spending and 40 to 50 billion baht in operating expenses for the 5G plan.

The source said NT management must explore all investment and operating alternatives to ensure long-term income stream.