Thaicom faces hike in concession fees

Thaicom faces hike in concession fees

The 11-meter satellite dishes, used to control three Thaicom Pcl satellites, stand behind the company's headquarters in Nonthaburi province, Thailand, on Monday, June 14, 2010. (Bangkok Post file photo)
The 11-meter satellite dishes, used to control three Thaicom Pcl satellites, stand behind the company's headquarters in Nonthaburi province, Thailand, on Monday, June 14, 2010. (Bangkok Post file photo)

The government plans to force SET-listed Thaicom Plc to pay an annual concession fee of 20.5% for its latest two satellites, a sharp increase over its 5.75% licence fee.

The move to revamp the operating fee structure for the satellite industry is intended to make this aspect of the space economy generate greater benefits for the country.

The initial resolution came after a discussion yesterday between Deputy Prime Minister Prajin Juntong, Thaicom and ACM Tares Punsri, chairman of the National Broadcasting and Telecommunications Commission (NBTC).

"A final agreement will be decided by the Information and Communication Technology (ICT) Ministry this year," said NBTC secretary-general Takorn Tantasith.

Thaicom, the country's sole satellite service provider, would still fall under the terms of the concession signed with the ICT Ministry until that contract expires in 2021.

Thaicom now pays a licence fee of 5.75% of total revenue to the NBTC for its latest satellites, Thaicom 7 and Thaicom 8, compared with the 20.5% rate that will be seen under the 15-year concession system.

Thaicom 7 was launched into orbit in 2012 and has operated since 2014. Thaicom 8 was launched in late May.

Thaicom noted that the satellite business has been governed by the NBTC under the licensing regime since 2010 in accordance with the 2010 Frequency Allocation Act, which stipulates that communication satellites are categorised as part of the telecom businesses.

Mr Takorn said that elements of the initial resolution were based on a study by law professors at Chulalongkorn University, suggesting that Thaicom 7 and 8 should still fall under the concession system, as the company's concession is still valid.

If implemented, he said Thaicom might offer monetary compensation to the state, or otherwise allow the state to use its satellite bandwidth free of charge.

Under current regulations, a satellite service provider must apply for a satellite operating licence from the NBTC, while the ICT Ministry works with the International Telecommunication Union (ITU) to arrange orbital slots in space for a satellite launch.

Thaicom currently only has to pay an undisclosed fee to the ITU to reserve an orbital slot.

The company is also required to pay a licence fee to the NBTC.

A source in Thaicom who asked not to be named said the company is waiting for a clear signal from the ICT and is ready to discuss cooperation with the state.

Thaicom now operates three satellites under a concession regime: Thaicom 4 (iPSTAR), a broadband satellite, and Thaicom 5 and Thaicom 6, both broadcasting satellites.

The company has two satellites under the NBTC's licensing system, Thaicom 7 and Thaicom 8.

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