Intouch could buy content producers if it wins digital TV licence

“We’re studying many solutions for content for digital TV. We still have time to acquire content until [early] next year,” Krittika Mahattanakul, executive vice president for new business at the company formerly known as Shin Corp, said yesterday.

Intouch picked up bid packages for only standard-definition variety channels and SD children’s channels. It has yet to say whether it will bid for both licences or just one.

It has already set up teams for bidding and TV operations but is still waiting for the board’s approval to submit an application to participate in the auction. The company would capitalise on the strengths of its cellular and satellite flagships, Advanced Info Service and Thaicom, to support the digital TV business.

Intouch did not pick up a package for high-definition (HD) channels because it felt it was better to wait for the next round, when it would have already gained considerable experience in the digital TV business, Krittika said.

If the National Broadcasting and Telecommunications Commission (NBTC) can acquire additional digital TV frequencies, it will hold a new but closed round of bidding for HD licences among only the 17 holders of SD licences. But this might not happen for three years.

The NBTC will put 24 commercial licences on the block in December or January and award the licences in first quarter of next year. The 24 licences are for seven HD channels, seven SD variety channels, seven SD news channels and three SD news channels. All bid winners have to launch services within 30 days after receiving their licences.

Yesterday Intouch also introduced two partners, Computerlogy and Meditech Solution. Its InVent corporate venture capital fund has invested in them by acquiring 3,334 newly issued shares of Computerlogy worth about Bt29 million, equivalent to 25.01 per cent of paid-up capital, and last month acquiring 42,860 newly issued shares of Meditech Solution worth Bt5 million, equivalent to 30 per cent of paid-up capital.

Computerlogy has developed SocialEnable, a system that helps organisations efficiently monitor and manage multiple social-media channels such as Facebook, Twitter, Google+ and Pantip. Intouch believes that Computerlogy’s expertise in social media and strength in software development will create synergy for the group’s businesses.

Meditech Solution is the manufacturer of SenzE, an eye-tracking communication device to assist the handicapped. The device is the first of its kind in Asia and is also the first system in the world that works with Thai software. 

This assistant technology allows patients to communicate accurately and conveniently with physicians and family. The device can be connected to a mobile platform, which can be further developed for eye-controlling medical equipment, games and other gadgets in the future.

Vachara Aemavat, chief executive officer and co-founder of Computerlogy, said InVent’s network and expertise would greatly benefit his company. The funding will be used to develop and enhance SocialEnable products, expand the social advertising business to Asian markets and improve the products and services to satisfy enterprise customers. 

The goal is to be the leading social-media software and platform developer in this region within five years.

Piyasak Boonkomrat, managing director of Meditech Solution, pointed out that the partnership with InVent would support long-term growth for his company. Intouch’s strong domestic and international network of subsidiaries and business partners can support Meditech’s market expansion into Asean. The funding will be used for SenzE and research and development of other products such as games and medical equipment.

Krittika also mentioned that InVent’s backing for high-potential Thai small and medium-sized enterprises in the information-technology, communications and media businesses would offer opportunities to and help improve the competitive capability of its partners. 

The percentage of ownership depends on upon terms mutually agreed by the partners. It is Intouch’s policy not to be a major shareholder and not to interfere with partners’ daily business operations. 

Intouch launched the InVent corporate venture capital fund at the end of May as part of its strategy of diversifying its portfolio. Ookbee, a major e-publication platform provider, was the first investment target. The deal took place late last year. 

InVent has already shortlisted three companies it is interested in and has studied proposals from 79 other companies.