IT firm turns focus to TV-network providers

WEDNESDAY, JULY 10, 2013
IT firm turns focus to TV-network providers

Determined to cash in on the transition to digital terrestrial-TV broadcasting, International Research Corp, a leading IT company, plans to diversify into broadcasting business by providing hardware and software for national digital-network providers.

Amid intense competition from key rivals such as Loxley, Samart Corp, Cisco System (Thailand) and Planet Communication Asia, the listed company aims to secure a transmission-installation project with a state media agency that has already obtained a licence to provide a network for digital broadcasting.
 The National Broadcasting and Telecommunications Commission recently granted such licences to the Royal Army, the operator of Channel 5; MCOT, which runs Modernine TV; the Public Relations Department, the operator of Channel 11; and Thai Public Broadcasting Service (Thai PBS).
 Under a key condition of these licences, a digital-TV network provider must build and expand its service area for digital broadcasts to 50 per cent of the nation’s 22 million households within the first year, 80 per cent in the second year, 90 per cent in the third and 95 per cent in the fourth.
 Chatree Chatreekul, vice president for digital broadcasting at International Research, estimated that the overall investment cost for the network-provision industry of entering the digital terrestrial-TV era would be at least Bt12 billion over the next four years. Such development presents a huge business opportunity to leading IT technology and solution providers such as International Research, he said.
 “We therefore target achieving a network-expansion project with one of those digital-TV network providers, in line with related projects. If we can win the project, it will create more than Bt3 billion in revenue for the company during the next two years,” said chief executive officer Kungval Kusoltam-maratana. Apart from providing equipment and software for network providers, the company also intends to import set-top boxes for sale once digital-TV services are introduced.
 International Research expects to sell at least 1 million digital set-top boxes within the first year. The boxes will be soon introduced under the Chud D brand, he added.
 The company also expects to see a 50-per-cent surge in revenue, mainly driven by the broadcasting business, to Bt1.35 billion this year.