Thaicom, AsiaSat deals a win-win bargain

SUNDAY, DECEMBER 25, 2011
Thaicom, AsiaSat deals a win-win bargain

The tie-up between Thaicom and Asia Satellite Telecommunication (AsiaSat) to retain the 120 degrees East orbital slot and the building of a new satellite makes it a win-win situation for both satellite operators, Thaicom's chief executive officer Suphaje

She added Thaicom would conduct a feasibility study to preserve the 50.5 degrees East slot.
Thailand’s right to preserve this position will end next October. The satellite in this orbital position can cover Asia, the Middle East and Africa.

Under the terms of its collaboration with AsiaSat regarding the 120 degrees East slot, both will place an interim satellite at the slot, while a new satellite will be launched there in early 2014. Both will provide services from their portion of the new satellite under the names of AsiaSat 6 and Thaicom 7 respectively. The tie-up will also enable them to provide additional broadcast and telecom services across the Asia-Pacific region.

Suphajee sees the collaboration with Hong Kong’s AsiaSat to preserve the slot as a viable answer. AsiaSat has a satellite available to be drifted to preserve the slot as an interim satellite and both are looking for more available satellite bandwidth capacity.

Moreover, irrespective of its position on the slot, Thaicom is required to hold talks with AsiaSat first, according to the Thailand-Hong Kong agreement regarding the use of this slot.
The interim satellite is expected to reach the slot within this year before Thailand’s reservation right over the slot expires next month.

Suphajee added that both satellite operators have already agreed that they would not tap the overlapped markets from the AsiaSat6/Thaicom 7 satellite, which will have 28 C-band transponders serving Asia and Australia. Thaicom will own up to 14 transponders on it.

Suphajee said that Thaicom planned to move the telecom service customers of Thaicom 5 broadcasting satellite, which is fully utilised, to the interim satellite to enable Thaicom 5 to acquire more broadcasting customers. About 10 per cent of the total capacity of Thaicom 5 served telecom customers.

Thaicom will apply for business licence from the National Broad-casting and Telecommunications Commission (NBTC) to provide services on the interim satellite and on the Thaicom 7 satellite.

Thaicom will launch its own Thaicom 6 broadcasting satellite by 2013. It has already pre-sold Thaicom 6, which is expected to reach 30 per cent of capacity next year from the present 10 per cent. Most of those who have signed up are the company’s existing Thai customers.
The attempt to maintain the 120 degrees East and 50.5 degrees East slots was initiated by the ICT Ministry during the tenure of the previous government.

It assigned CAT Telecom to study ways to preserve the slots. CAT later informed the ministry that it is not viable to materialise the mission.

The present Cabinet approved in September the ICT Ministry’s plan to have Thaicom proceed to preserve the slots.

Thaicom will study ways to preserve the 50.5 degrees East slot but at the end it might not move to preserve it if it finds that business factors do not justify the move.