Broadcasters seek lower digital TV transmission fees

MONDAY, DECEMBER 28, 2015
Broadcasters seek lower digital TV transmission fees

A GROUP of 10 out of 13 digital TV broadcasters are appealing for a reduction of transmission-network leasing fees charged by the Army’s broadcast arm to help them cope with the expected weakening of advertising income in the new year.

Led by Suphab Kleekachai, president of the Association of Digital TV Broadcasting (Thailand), executives from 13 terrestrial-based digital TV operators yesterday lodged a petition to the president of the Royal Thai Army Radio and Television Channel 5, seeking to negotiate with the Army, which currently provides a transmission service to telecast their TV programmes.
Those commercial digital TV broadcasters comprise PPTV, Amarin TV and One for high-definition (HD) service, while Workpoint TV, GMM 25, Now 26, Mono 29, New TV, Nation TV and Bright TV broadcast in standard definition (SD).
Suphab said the group wanted to stress the quality of digital-TV transmission by the Army, which does not cover all areas of the country yet, particularly in rural parts. This has affected the confidence of advertisers and media agencies spending money on digital TV.
Kematat Paladesh, president of Bangkok Media and Broadcasting, the operator of PPTV, said that after almost two years in the digital-TV business, his company had never enjoyed any reduction of or discount to the transmission fee despite the incomplete coverage area.
These digital TV operators have paid a total of Bt1.4 billion to the Army for transmission services in those two years.
Adisak Limprungpatanakij, chief executive officer of Nation Broadcasting Corporation, a member of Nation Multimedia Group, said the transmission-network leasing fee was too high compared with the real costs.
“Based on the actual cost of facilities and necessary software for broadcasting a standard-definition service, the monthly charge should be just Bt2.8 million a month per channel. But in fact, Nation TV and Now 26 are being charged Bt4.9 million monthly by its transmission-network operator,” he said.
In this low-competition market, it seems unfair to digital-TV broadcasters if the current charge is 75 per cent higher than the actual cost, he said. After discussing this issue with Natee Sukunrat, chairman of the broadcasting committee of the National Broadcasting and Telecommunications Commission, the digital TV operators were advised to talk directly to the Army.
Last week, Somkiat Tangkitvanich, president of the Thailand Development Research Institute, said the full transition to the digital-TV era was very important for the broadcasting industry as well as its audience.
“The NBTC should take on a more supportive role towards the industry to consummate the transition of TV broadcasting from analog to digital, particularly the high cost of transmission. So the NBTC should support them by encouraging providers of digital TV [transmission] services to help reduce the charges for TV stations,” he said.