Broadcasters decry high digital TV costs

Broadcasters decry high digital TV costs

Broadcasters are concerned about the high network costs for digital TV, which they fear could bar new players.

Dew Waratangtagoon, chief operating officer for platform strategy at GMM Z, said the company is ready to join the bidding for three digital categories _ a children's channel, a news channel and a variety channel.

The National Broadcasting and Telecommunications Commission (NBTC), under its time line for digital TV, will issue network licences next month via a "beauty contest".

But GMM Z is concerned about the very high expense of digital broadcasting technology compared with satellite TV, which covers 64% of Thai households.

"If digital TV costs too much, then newcomers won't be attracted and the digital transformation will be difficult to achieve," Mr Dew told a seminar on digital broadcasting yesterday.

Another concern is the ongoing shift towards the online platform, possibly making digital TV unnecessary for consumers, he added.

Anupon Tajawanno, the business development manager at Cisco Systems Co, the IT systems provider, said digital TV channels will cost more than satellite TV, which now comes in 10 million baht per channel per year.

Digital TV network investment is estimated at 1.3 billion baht, he said.

Sura Gaintanasilp, an executive vice-president of MCOT Plc, the state-owned broadcaster of Modernine TV, said the NBTC should revise down the maximum number of digital TV network provider licences to two or three from five planned now.

"Having so many network providers will only increase broadcasters' costs, as they'll have to install equipment compatible with the technical requirements of each network," he said.

Mr Sura said network rental costs are another critical point.

Recently, six existing free channels expressed a desire for their own digital TV networks.

They are Channel 3; Channel 5, run by the Royal Thai Army; Channel 7, run by Bangkok Broadcasting and Television; MCOT; the Public Relations Department; and Thai PBS.

Thawatchai Jittrapanun, a member of the NBTC's broadcasting committee, said the latest survey on spectrum value pegged network rental for digital TV at about 30 million baht per year per channel.

"This is much higher than we expected and won't attract new players," he said.

Mr Thawatchai said the cost was expected to be half that.

Network rental costs are important to spectrum value, the calculation of which is under review, with results to be finalised this month, he said.

The NBTC wants to set a fair price for network rental that is within the reach of individual channels.

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