Intouch says Bt7.7bn claim for broken satellite won’t hit finances
Intouch Holdings (INTUCH) expects its 2020 turnover to drop year on year due to a decline in Advance Info Services (ADVANC) revenue. Meanwhile, turnover of the firm’s satellite arm, Thaicom (THCOM), is projected to rise slightly after challenges in signing new contracts, according to Tomyantee Kongpoolsilpa, INTUCH senior vice president Portfolio Management & Investor Relations.
However, she denied that a Bt7.7-billion compensation claim against THCOM for a lost satellite would impact its finances.
She said ADVANC had allocated a budget of Bt35 billion to expand 5G networks and 4G home internet, of which Bt18 billion had been used to extend 2600MHz-spectrum 5G coverage to 60 per cent of Bangkok and 60 per cent of the Eastern Economic Corridor (EEC).
"The company will continue expanding 5G coverage in the 700MHz and 26,000MHz spectrum to enhance service and business operations, with the number of 5G users set to hit 100,000 this year and 1 million next year," she said. The company would also continue investing in start-ups related to digital telecommunication and 5G.
She also said that the Digital Economy and Society (DES) Ministry's Bt7.7-billion compensation claim for the damaged Thaicom 5 satellite would have no impact on INTUCH's financial statement because the company is complying with the concession contract.
The DES Ministry has issued a notice urging INTUCH and THCOM to deliver a new satellite to replace Thaicom 5 by next year, or else pay damages of Bt7.7 billion with annual interest of 7.5 per cent. Failure to deliver would also incur a fine of Bt4.98 million with annual interest of 7.5 per cent until delivery or full payment of damages.
Thaicom 5 developed a technical fault on December 17, 2019 and, after several unsuccessful attempts at recovery, THCOM proposed deorbiting the satellite 14 years after its launch in May 2006.
