TRUE’s Cycle of Loss

Not one of the three telecommunication operators has yet to unveil its plan for the bidding for 700 MHz. Meanwhile, analysts believe TRUE could have faced the same situation as 900 MHz.

There are quite a few alternate prologues to start the bidding for 700 MHz spectrum concession which later will be transformed into 5G network. All three operators could deny the participation in the bidding, or maybe some would participate while all participating is also possible.


ADVANC, TRUE, and DTAC are all trying to sound each other out, but none has succeeded as each side try their best to conceal the strategy to be used in the bidding. Nevertheless, all parties will have to show their hands before May 10, 2019, which is the deadline to submit for the extension of the 4th installment of 900 MHz and participation in 5G bidding.


Recently, Mr. Suphachai Chearavanont, TRUE’s Chairman of Executive Committee, had asserted all the alternatives are possible for the company while the decision is up to the Board of Directors.

The minimum price of this 5G concession is around THB 25,000-27,000 million which analysts believe that TRUE will repeat the cycle of loss (like when it had to pay for 900 MHz license) again. And this cycle of loss will surely drag TRUE’s profit down for a very long time.


While the business using 5G is still new and unpopular, it is possible that TRUE will bid for only a small portion of 700 MHz. In any case, the company needs to study the condition of 700 MHz again before making any decision.

Now, all eyes focus on the special meeting of the Board of Directors to decide the direction of TRUE’s business. And whether the business will go up or down after the decision, the share price could have gone the same way as well.