Network providers set coverage goal as others seek discounts

However, executives from some 33 companies wishing to join the spectrum auction of 24 commercial terrestrial digital-TV licences will be looking to hold one-on-one talks with each of the four state-run TV network providers to get further details about coverage and to negotiate discounts. 

The Broadcasting Committee of the National Broadcasting and Telecommunications Commission (NBTC) organised a meeting yesterday at which representatives of the Army, MCOT, the Public Relations Department (PRD) and Thai Public Broadcasting Service (Thai PBS) met representatives of 33 companies that bought bidding documents for the auction. 

After the session, PRD deputy director-general Prawin Pattanapong said his agency aimed to achieve 95 per cent coverage with its digital-TV network service within three years under its Bt3-billion investment plan. 

Maj-General Boonyarit Wissamol, director of the Policy and Planning Department at the Royal Thai Army Radio and Television Station, said the Army aimed to complete its rollout plan in the next two years. The Army has allocated Bt2 billion to the plan. This amount will be spent on digital-TV transmitters, and supporting equipment and facilities, at 205 broadcasting sites, including 39 main broadcasting towers and 166 medium- and low-power sites. 

Boonyarit said the Army’s coverage areas to provide terrestrial digital-TV network service would reach 70 per cent of the country’s 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). 

MCOT appears to be offering the highest “reference rate” – the amount that eventual broadcast licence-holders will be charged by network providers. But MCOT president Anek Permvongseni said his company was offering more benefits and premium options, such as targeted advertising services, a playout centre and services, content scheduling, channel branding and station ID insertion. “Playout” is a term for the transmission of TV feeds from the broadcaster into broadcast networks that deliver content to the audience. 

 

Two dimensions 

MCOT will broadcast terrestrial digital-TV signals in two dimensions – horizontal and vertical. This method allows indoor receptors and mobile receivers to receive clearer signals.

The operator of Modernine TV, MCOT targets 98 per cent coverage by 2015. The company has earmarked at least Bt5 billion for its transition plan to the digital-TV era.

Mongkol Leelatham, deputy director-general of Thai PBS, said his agency expected to achieve full coverage within the next three years and said the firm was open to talking with the broadcasting companies about possible discounts.

For digital-TV network leasing, 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 offering the lowest rates at Bt4.6 million for SD and Bt13.81 million for HD.

The information and fee announcements released by the “big four” network providers so far do not seem to have been sufficient for the 33 potential bidders, however.

Chitralada Henghyotmark, senior vice president for legal and regulatory at GMM Grammy, said the company would soon talk directly with the four digital-TV network providers to get further information as it seeks the best possible offer. The additional information it seeks involves potential areas to be covered in first two years.