Broadband internet services offered by low Earth orbit (LEO) satellite company OneWeb are expected to be launched locally by the fourth quarter this year.
The service is a partnership between OneWeb and state telecom enterprise National Telecom (NT).
NT provides gateway station facilities to OneWeb's LEO satellite operator, while OneWeb operates the business under NT's landing rights licence, according to Col Sanphachai Huvanandana, president of NT.
The planned service launch follows the May 27 resolution of the National Broadcasting and Telecommunications Commission (NBTC) to approve the partnership to provide satellite broadband internet services in Thailand under NT's landing rights.
Col Sanphachai told the Bangkok Post NT will benefit from the partnership by gaining fees from providing the gateway and facility service to OneWeb.
NT will also share revenue with OneWeb from NT's plan to wholesale part of OneWeb's satellite broadband capacity in the local market, he said.
OneWeb's satellite broadband service is not deemed a threat to the existing fibre broadband service market, but may affect broadband service provided by geostationary satellites, said Col Sanphachai.
NT is applying for a licence to provide foreign satellite broadband services to wholesale part of OneWeb's LEO broadband capacity to the local market.
He said the partnership expects to launch the broadband internet service via OneWeb satellites by the fourth quarter this year, delayed by four months from the original timeline.
NT submitted its proposal to the NBTC for related licences to offer the service last year, in line with the NBTC's new licensing system related to foreign satellites.
The NBTC licensing regime covers three licence categories: landing rights, gateways and services.
Earlier Col Sanphachai said the partnership seeks to cash in on ground station facilities in Thailand and regional service deployment.
NT is expected to be a hub of OneWeb's LEO satellite services for Cambodia, Laos, Myanmar and Vietnam. NT already installed equipment related to the station's facilities.
According to NT, the gateway station for OneWeb's LEO connectivity is established at NT's gateway station in Ubon Ratchathani province.
Under the partnership, OneWeb hires NT to develop, equip and operate ground station facilities in Thailand at NT's satellite station.
The infrastructure and services of the ground station enable the deployment of commercial broadband services via LEO satellites by OneWeb in Thailand and the region.
The gateway station is owned by NT, while the related equipment is imported by OneWeb.
THAICOM OPPORTUNITIES
Pisut Ngamvijitvong, senior equity research analyst at Kasikorn Securities (KS), said Thaicom's chief financial officer told KS the partnership between NT and OneWeb did not surprise Thaicom as NT completed construction of OneWeb's ground station in Ubon Ratchathani several months ago.
OneWeb's current bandwidth capacity for Thailand is only 2 gigabits per second (Gbps), said the brokerage.
Thaicom is exploring business opportunities with both NT and OneWeb as it has been working with OneWeb in Australia, he said.
Mr Pisut said the Thaicom executive stated Thaicom offers superior competitiveness on end-to-end solutions and pricing in user terminals.
However, KS predicts the OneWeb-NT partnership deal is negative for Thaicom.
Under the worst-case scenario, Thaicom's barrier-to-entry advantage will be compromised, said the brokerage.
The NBTC approval may set a precedent for other foreign satellite operators to penetrate the Thai market, according to KS.
However, he said the brokerage cannot rule out the possibility Thaicom may become a key business partner of NT and OneWeb, or that Thaicom may file a petition against the regulator's decision regarding the NT-OneWeb alliance.
Mr Pisut said it is premature to suggest possible financial impacts for Thaicom from this partnership.