Samart Corporation strongly opposes a proposal by consumer activists for the national broadcasting regulator to halve the value of the subsidy coupons for set-top boxes, saying the rate does not reflect the "real cost".
The telecom equipment company said the distribution cost alone constitutes up to 30% of a set-top box price.
The National Broadcasting and Telecommunications Commission (NBTC) plans to give away its subsidy coupons in July to 22 million Thai households. People can use the voucher to purchase a digital set-top box or a digital TV set.
The regulator has not finalised the price of the coupon, but NBTC sources said earlier it is likely to be set at 1,000 to 1,200 baht.
Consumer activists say the state could lose money, noting market surveys put the price of a set-top box at 512 baht.
"Without marketing and distribution costs, a set-top box with an A-grade quality standard under the NBTC's certification requirement already costs more than 512 baht," said Watchai Vilailuck, president of Samart Corporation.
He said a 1,000-baht voucher for a set-top box equipped with an antenna would be the most appropriate price.
Samart, through subsidiary Samart Engineering, launched three models yesterday for its set-top boxes under the Strong brand, priced starting from 1,000 baht.
There are 11.4 million households in Bangkok, Nakhon Ratchasima, Chiang Mai and Songkhla, and Samart expects 80% of those who receive the coupons will use them this year.
"We expect to sell at least 1.5 million set-top boxes this year through our 10,000 shops," said Mr Watchai.
The company projects to realise 8 billion baht in revenue from the digital TV business this year, including set-top box sales and digital content.
Samart I-Mobile Plc rolled out three mobile phone models that allow users to watch all 48 digital TV channels, costing from 3,500 to 8,000 baht. The company projects sales of 1.5 million digital TV-equipped handsets this year, he said.
Mr Watchai said Samart expects consolidated revenue of 30 billion baht this year, up 30% from last year, thanks to the digital TV revenue stream.