High competition for variety, kids channels, says NBTC official

“According to our survey, about 20 companies are expected to enter bids for SD variety channels, 10 companies for children’s channels, while seven to nine will join the bidding for high-definition and news channels,” said Thawatchai, a broadcasting board member of the NBTC.

The NBTC had earlier announced that of the 24 channels up for bidding, seven would be HD channels, seven SD variety channels, seven news channels and three children’s channels. 

Bidding starts at Bt1.51 billion for each of the seven HD variety channels, Bt380 million for each of the seven SD variety channels, Bt220 million for each of seven SD news channels and Bt140 million for each children’s channel

He said there would be higher demand for variety and children’s channels. He expects criticism for there being only three kids’ channels during the public hearing next month on the draft regulations for the digital TV auction.

Yesterday, Thawatchai held a press conference to voice his concerns on some key issues in the draft, including the instalment payment scheme.

He proposed that there would be a three-year grace period for all bid winners to help small and medium TV operators make their financial plan.

According to the draft, the NBTC will offer an instalment payment scheme for all successful bidders. The first part involving the reserve price will be allocated for the NBTC’s programmes to ensure wide public access to digital TV, and the second part, covering the difference between the reserve price and the final bid price, is set aside for the commission’s Research and Development Fund.

Each TV licence holder will have four years to pay the starting price. In the first year, 50 per cent of the starting bid price must be paid to the NBTC, 30 per cent in the second year, 10 per cent in the third year and the balance 10 per cent in the fourth. 

The second part is the R&D Fund. In the first two years, each TV licensee must pay 10 per cent of the difference between the reserve and final price towards this fund, while it must pay 20 per cent from the third year until the sixth year. 

Thawatchai said the three-year grace period should be set for the second part by allowing all TV licensees to starting paying in the third year. The term of payment should be extended from six to eight years.

He said he would place all of his concerns before the broadcasting board next Monday.