NBTC grants satellite licence even as DSI summons executives

Meanwhile, the Department of Special Investigation has asked Thaicom executive chairwoman Suphajee Suthumpun and InTouch executive chairman Somprasong Boonyachai to answer inquiries tomorrow regarding the DSI probe of persons and juristic entities allegedly involved in breaches of the Foreign Business Act of 1999. 

The DSI said the inquiries might be in connection with the 2009 request by the Commerce Ministry’s Department of Business Development for a probe into 16 alleged breaches of the act. InTouch is Thaicom’s parent.

An NBTC source said the telecom committee approved the licence as it had obtained documents from the company and the Commerce Ministry certifying that Thaicom is a Thai company. The committee has no involvement in the DSI summons of Thaicom and InTouch executives on the matter. 

Suphajee said Thaicom was not worried about clarifying the case with the DSI. 

The company will send a representative to meet with the agency as requested.

The NBTC committee is granting Thaicom a Type 3 licence, that is, one for a business owning a large telecommunication network. It will authorise operation of any of its satellites positioned in the 120 degrees east slot. However, Thaicom is subject to future changes in the licensing regulations. The watchdog will soon put all of its draft satellite licensing regulations to a public hearing. The term of the licence is 20 years and the satellite has to start providing service within seven years of obtaining the licence. The licence fee is 2 per cent of Thaicom’s gross annual revenue, plus the universal service obligation (USO) fee of 3.75 per cent of gross revenue.

To be eligible for a satellite network provider licence, an applicant must be a Thai entity as defined by the 2001 Telecom Business Act, which caps the maximum foreign shareholding in a local telecom operator at 49.99 per cent. 

Thaicom needs the licence to operate the interim satellite it has placed in the 120 degrees east slot jointly with Hong Kong’s Asia Satellite Telecommunication (AsiaSat). They will also jointly launch AsiaSat6/Thaicom 7 into the same slot in 2014. Positioning these two satellites in the position serves the policy of the previous government to maintain Thailand’s right over the slot. 

The company’s current Thaicom 5 broadcasting satellite and iPSTAR broadband satellite have operated under a concession of the Information and Communications Technology Ministry.

Recently Infobahn, founded by former Thaicom chief executive officer Dumrong Kasemset, urged the DSI to make progress with its probe of the qualifications and legal status of Thaicom and InTouch, and whether they are restricted by law from conducting telecom business. It cited the result of a preliminary DBD probe into holding company Kularb Kaew, which allegedly breached the Foreign Business Act by being the nominee of Singapore’s Temasek Holdings in buying InTouch (then Shin Corp) shares in 2006. 

Suphajee has affirmed that Thaicom is mainly owned by Thais and has already clarified its status with the NBTC. She once said that even in the worst case that InTouch, which owns 41 per cent of Thaicom, is ruled as being foreign-dominated, Thaicom would still enjoy status as a Thai firm, given that the remaining 53 per cent is jointly held by Thai minor shareholders, both individual and institutional investors.

The Foreign Business Act caps the foreign shareholding of Thai telecom operators at 49 per cent.

Aspen Holdings and Cedar Holdings, both associated with Temasek, own about 41 per cent and 38 per cent of InTouch respectively.