State-run free-TV operators may form a joint venture to operate a network for digital TV together now that the regulator has granted them licences.
The National Broadcasting and Telecommunications Commission (NBTC) issued the network operator licences to the Royal Thai Army, which operates Channel 5; MCOT Plc for Channel 9; the Public Relations Department for Channel 11; and Thai PBS, the public-TV station.
The joint venture would pool the different networks into a single one in a bid to reduce investment costs and facilitate efficient management, in turn reducing network rental fees.
Sura Gaintanasilp, an executive vice-president of MCOT, said the new venture must be set up before the digital TV auction takes place in late September.
Currently, the critical point for partnership concerns legal issues, as the state-run broadcasters are under different ministries.
The Public Relations Department is under the Prime Minister's Office, which by law cannot make a profit.
MCOT is a state enterprise under the Finance Ministry, the Royal Thai Army is under the Defence Ministry, while Thai PBS holds the status of a state agency whose legal entity is defined under the Thai Public Broadcasting Service Act.
However, experts believe the entities can form a joint venture since they are all affiliated with the government.
Somchai Suwanban, the managing director of Thai PBS, said his station could collaborate with the others since the law allows it to take in revenue from other businesses besides commercial advertising and content sales.
Col Setsiri Trisaksri, Channel 5's technical director, said the Army has approved 3 billion baht budget for the channel's digital transition over the next five years.
It will expand its network to 15 main broadcast towers and 10 subordinating towers, covering 55% of the country in the first year.
Eight major provinces including Bangkok, Chiang Mai, Khon Kaen, Udon Thani, Rayong and Songkhla will be first, said Col Setsiri.
The network will cover 80% in the second year, 90% in the third year and 95% in the fourth year, in line with the NBTC plan.
Additionally, the Army will establish another eight stations for the broadcasting devices' maintenance.
Col Natee Sukonrat, chairman of the NBTC's broadcasting committee, said the state-run TV operators must submit their plans within one year after the licences are issued.