The Information and Communications Technology (ICT) Ministry is looking to revise the amended satellite concession of Thaicom Plc in the wake of a recent Supreme Court decision reaffirming that the minimum shareholding in the company was against the constitution and telecom law.
"We will contact Thaicom's executives to discuss the matter next Thursday," a high-ranking source at the ICT Ministry told the Bangkok Post.
The discussion will involve the amendment of a concession that allowed Shin Corp to reduce its minimum shareholding in its satellite affiliate Shin Satellite, now renamed Thaicom, from at least 51% to 40% in 2004, the source said.
The Supreme Court's Criminal Division for Political Office Holders yesterday handed former ICT Minister Surapong Suebwonglee a one-year jail term over the Thaicom shareholding case.
The court ruled Mr Surapong was guilty of malfeasance by authorising the amendment of the Thaicom concession, which was against the constitution's principles and the telecom law.
Approval helped the firm boost its competitiveness and put the telecom business at risk of foreign dominance, the court said.
The court found Mr Surapong to have violated the Criminal Code's Section 157, which prohibits officials from actions that cause damage to the state.
The ICT source said the ministry expects Thaicom to cooperate: "The case should end with a clear resolution as this issue has been criticised for a decade."
A discussion would pave the way to formulate a new investment model for the satellite industry to replace the licensing regime.
The government is considering four investment options: a wholly owned state enterprise; a public-private joint venture with the state owning a majority stake; flexible forms of public-private joint ventures; and the existing licensing model but with higher operating costs.
A resolution is expected to be settled by early 2017.
A source at Thaicom said the company and executives were not a direct party to the case. The judgement concerned only Mr Surapong, not Thaicom, the source said.
"We reserve the right to consider any conditions proposed by the ICT Ministry," the source said.
InTouch Holdings, the parent of Thaicom, holds a 41% stake in Thaicom.
Temasek Holdings holds 40% of InTouch through its two affiliates Aspen Holdings and Cedar Holdings.
Thaicom operates three satellites under a concession regime: Thaicom 4 or iPSTAR, a broadband satellite, and Thaicom 5 and Thaicom 6, both broadcasting satellites.
Its concession with the ICT Ministry is due to expire in 2021, with a condition of 20.5% revenue-sharing with the state.
Thaicom has two satellites operating under the licensing system of National Broadcasting and Telecommunications Commission (NBTC): Thaicom 7 and Thaicom 8. Thaicom pays only a licence fee of 5.75% of total revenue to the NBTC for the two satellites.