Intouch wants regulatory issues of Thaicom cleared up by Q2

WEDNESDAY, FEBRUARY 22, 2017
Intouch wants regulatory issues of Thaicom cleared up by Q2

INTOUCH HOLDINGS’ Thaicom and the Digital Economy and Society Ministry should completely clear up regulatory issues by next quarter so that Thaicom will know if it can go ahead with the launch its Thaicom 9 broadband satellite, Philip Chen Chong Tan, chief executive officer of Intouch, said yesterday.

Otherwise Thaicom might lease transponder capacity from other satellites to continue providing satellite services. 
Thaicom, 41.1 per cent owned by Intouch, has been talking with the ministry for more than two years about the ministry’s proposal to bring the company’s Thaicom 7 and 8 broadcasting satellites under its concession regime as part of its reform of the satellite service industry. 
The two satellites currently operate under the National Broadcasting and Telecommunications Commis-sion’s licensing regime. 
A ministry source has said the National Space Affairs Committee had asked the ministry to resolve their dispute first before the company could proceed with orbiting Thaicom 9, also known as IPSTAR 2.
Thaicom has counter-proposed joining with CAT Telecom to develop Thaicom 9 at a cost of about US$250 million (Bt8.8 billion). 
Tan acknowledged that Thaicom was in talks with CAT on the possible partnership. 
If Thaicom fails to reach a conclusion with the ministry on Thaicoms 7 and 8, the company might opt to lease capacity from other satellite operators, instead of launching Thaicom 9, to serve demand of satellite services in Asean, he added.
Thaicom has also proposed to the ministry that it would allow the government to use one transponder from each of its existing licensed satellites and also its future licensed satellites free of charge for the rest of their lifespans. 
It also proposed that the Thaicom 4 (IPSTAR) broadband satellite and the Thaicom 5 and 6 broadcasting satellites, which operate under the ministry’s concession, would continue paying the annual concession fee from the expiration of the concession in 2021 until the end of their lifespans. 
The annual concession fee it offers to pay in this case is the same as it will pay to the ministry from this year until 2021, which is 22.5 per cent of its gross revenue. 
The concessions for Thaicoms 4 and 5 will end at the same time in 2021, while in theory their lifespans will run to 2021 or later. 
The concession for Thaicom 6 runs until 2021 but its lifespan will continue for a further eight years. 
The ministry commissioned Chula Unisearch to study how to reform the satellite service industry. The study recommended bringing Thaicom’s two licensed satellites – 7 and 8 – back under the ministry’s concession regime. Both satellites will be under a concession until it expires in 2021. 
The ministry has overseen the satellite industry through granting concessions before the NBTC got off the ground in 2000 and granted licences for Thaicoms 7 and 8. 
This has led to redundancy in overseeing the satellite industry.
Intouch has allocated a budget of Bt250 million for research and development in telecommunications and technology as part of its exploration of new business opportunities.
It will also inject Bt200 million into its venture capital fund InVent to support four new promising companies this year.