Leasing charges for digital networks approved; MCOT leads list of rates
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The proposed leasing charges for digital terrestrial TV networks were in line with a consultant's study and approved yesterday as "reference offers" for bidders of digital terrestrial TV licences, with MCOT's rates the highest.
“The Detecon study suggests that the possible fees for such services are quite on par with the fee proposals submitted by the four national TV broadcasters,” said Natee Sukonrat, chairman of the Broadcasting Committee.
MCOT’s monthly rates are Bt4.76 million for a standard definition (SD) channel and Bt14.28 million for a high definition (HD) channel.
The rates offered by Royal Thai Army Radio and Television Station, the operator of Channel 5, are second highest – Bt4.72 million for SD and Bt14.16 million for HD.
The Public Relations Department (PRD), the operator of National Broadcasting, will charge Bt4.6 million for SD and Bt13.95 million for HD.
Thai Public Broadcasting Service (Thai PBS) is the lowest at Bt4.6 million for SD and Bt13.81 million for HD.
After receiving licences for providing digital TV network services from the National Broadcasting and Telecommunications Commission (NBTC) in June, the four state-run TV broadcasters proposed the service fees to a committee governing fees and fares in radio and TV broadcasting service.
MCOT, the PRD and Thai PBS each hold only one licence to provide up to six SD and two HD channels, while the Army has two licences.
The Broadcasting Committee had hired Detecon Asia-Pacific, a leading ICT consulting firm, to study possible network leasing rates based on the investment required to roll out digital terrestrial TV networks across the country.
Natee said the reference offers would help potential bidders make the right decision about applying to join the spectrum auction.
On Monday, the four national providers of digital network services will present their business plans, service rates and after sales services to those potential bidders.
However, the reference offers do not include the cost for satellite transmissions under the NBTC’s “must carry” rule. According to an industry expert, the cost would run about Bt1 million a month for an SD channel.
Under the rule, cable and satellite TV operators must carry all the TV programmes of 12 public and 24 commercial digital terrestrial TV channels for all viewers on their platforms.
The actual payment for digital TV network leasing would depend on coverage. For example, in the first year, each channel operator must pay 50 per cent of the annual fee for digital TV network service, 80 per cent in the second year, 90 per cent in the third and 100 per cent in the fourth and following years.
But the four digital TV network operators target to reach 100 per cent of all 22 million households within three years.
Natee said his panel would revise those rates every year to ensure that they are fair to all channel operators.
The Broadcasting Committee also awarded licences to Global Broadcast and Poly Broadcasting to operate platform services for cable and satellite TV channels. Poly Broadcasting is wholly owned by PSI Holdings, the country’s largest manufacturer and distributor of C-band satellite TV dishes and receivers.
