Move by watchdog means set-top box business faces an uncertain future

The National Broadcasting and Telecommunications Commission’s recent decision to expand its mandate to cover all aspects of the pay-TV set-top-box business has caused some uncertainty among players in that segment.
The NBTC has extended the definition of radio communication devices to cover set-top-boxes in its effort to bring order to the entire broadcasting business, said Natee Sukonrat, chairman of the watchdog’s broadcasting committee. His committee passed a resolution that it will consider granting permits to produce, import and distribute the boxes only to TV operators under its upcoming regulations or those of other state agencies. The operators under the state concessions include free TV operators, TrueVisions, and some cable TV operators.
Natee said the manufacturers, distributors and importers of the boxes would have to clarify the purpose of the devices. If they will not be used by authorised TV operators, the commission might not grant them permits.
This raises the question of whether existing set-top-box providers and cable and satellite TV operators that have no NBTC licence will be authorised to import the boxes to expand their businesses.
GMM Grammy declined to comment on the issue. But its managing director for sport and content development, Kobkiat Sangwa-nich, said last week that GMM Z planned to import 500,000 new set-top boxes soon, as the 870,000 units it had on hand were already sold out. A source at one set-top-box company wondered how it could apply for a business licence from the NBTC to be eligible to manufacture the units when the watchdog has yet to make such licences available.
Natee said NBTC was expected to finalise its regulations in August on granting of broadcasting licences. These will include licences for network providers, facility providers, service providers and application providers.
Niran Tangpiroontham, managing director of Infosat Intertrade and president of the Satellite Dish Club, said his company’s inventory of products, particularly set-top boxes, would last for three or four months. If the licensing situation is not sorted out soon, the company will face a tough situation. The Satellite Dish Club includes Infosat, IDeaSat, Dynasat, ThaiSat and Leo Sat, accounting for almost 50 per cent of the dishes in the country.
Napasak Kotwiboon, managing director of PSH Holding, the country’s largest satellite TV trader, manufacturer and distributor, said his company had not been granted a permit to import satellite equipment after he submitted a request to the NBTC early this month.
The NBTC broadcasting committee passed a resolution that it would grant permits to import the boxes only to eligible pay-TV operators during its meeting to consider a request by M V Television Thailand to import DVB-T receivers for terrestrial digital TV. It declined to grant the company’s request, saying it had yet to issue regulations governing digital TV.
The NBTC also notified relevant parties on May 30 that some TV operators had imported, produced or distributed receivers for pay-TV programmes, but such practices require permission according to relevant laws. A receiver of radio and TV broadcasting signals is a radio communications device under the 1955 Radio Communications Act. Activities related to such equipment require permits from authorised state officials under Article 6 of the act. Violators of the law can face fines not exceeding Bt100,000 or imprisonment not exceeding five years or both, according to Article 23.
The production, import and distribution of pay-TV programme receivers require NBTC permits, according to Article 70 of the 2008 Radio Broadcasting Act. Violators face imprisonment not exceeding two years or fines not exceeding Bt2 million or both.