Army preparing 2-yr, Bt3-bn digital TV network rollout plan
Besides doubling the capacity of its network services for the coming digital terrestrial TV channels, the Royal Thai Army is set to complete its rollout plan in the next two years, earlier than called for in the National Broadcasting and Telecommunication
The Army – the operator of Channel 5 – is preparing Bt3 billion for its two-year rollout plan. This amount will be spent for digital TV transmitters and supporting equipment and facilities at 209 broadcasting sites including 39 main broadcasting towers and 170 medium- and low-power sites.
The source said the Army’s coverage areas to provide digital terrestrial TV network service would reach 70 per cent of the total 22 million households in the first year and 97 per cent in the second year.
The Army seems to have a competitive advantage over its rivals as it has two licences to provide 12 digital TV channels in standard definition (SD) and four channels in high definition (HD).
The other three state-run TV broadcasters – namely MCOT, the Public Relations Department (PRD) and Thai Public Broadcasting Service (Thai PBS) each hold only one licence to provide six SD and two HD channels.
The same source added that MCOT, the PRD and Thai PBS proposed to the NBTC’s broadcasting panel their four-year rollout plans in accordance with the NBTC’s rule governing licence-holders of digital TV network services. Under their proposals, coverage areas will reach 50 per cent of total households in the first year; 80 per cent in the second; 90 per cent in the third; and 95 per cent in the fourth. To provide such digital TV network service, the three TV broadcasters must share 189 broadcasting sites, including 39 main broadcasting towers and 150 medium – and low-power sites.
In terms of investment in new digital TV transmitters and supporting equipment, MCOT, the operator of Modernine TV, has earmarked at least Bt5 billion for its transition plan to the digital terrestrial TV era. The state enterprise media outlet’s plan was also approved by the government. If it requires more funds for this plan, MCOT will seek financing through bank loans of up to Bt11 billion. According to its chief financial officer, investment in new digital TV network expansion will be worth approximately Bt1.7 billion.
The PRD, which currently operates Channel 11, is preparing Bt2 billion to Bt3 billion for new digital TV network investment, while Thai PBS has set aside Bt1.5 billion to Bt2 billion for its new network expansion and content development.
This afternoon, the NBTC’s broadcasting committee will offer an opportunity for the four state-run TV broadcasters to meet and present their business plans; rollout and service plans; and network leasing fees to 33 companies that recently bought bidding documents for the country’s first spectrum auction of 24 commercial digital terrestrial TV licences.
For digital TV network leasing fees, MCOT’s monthly rates are Bt4.76 million for an SD channel and Bt14.28 million for an HD channel.
The rates offered by the Army are the second highest – Bt4.72 million for SD and Bt14.16 million for HD.
The PRD will charge Bt4.6 million for SD and Bt13.95 million for HD, while Thai PBS is the lowest at Bt4.6 million for SD and Bt13.81 million for HD.
However, those rates, the so-called "reference offers", do not include the cost of satellite transmissions under the NBTC’s "must carry" rule, or value added tax. According to an industry expert, the satellite transmission cost would be about Bt1 million a month for an SD channel.
NBTC secretary-general Thakorn Tanthasit said the information presented by the four digital TV network providers would help the 33 bid-document buyers make the right decision about applying to join the spectrum auction.
The application period is October 28 and 29.
