NBTC postpones auction by almost a month
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NBTC postpones auction by almost a month

Delay an attempt to draw more bidders

GENERAL

The National Broadcasting and Telecommunications Commission (NBTC) board has resolved to postpone the auction of four satellite orbital slot packages originally slated for July 24 by almost a month, in what is seen as an attempt to draw more potential bidders to the auction.

A source at the NBTC board who requested anonymity said the postponement of the auction topped the agenda at the board meeting yesterday. Later on Wednesday, it was revealed by the NBTC that the auction will now take place on Aug 21.

The source said the board did not discuss the suggestion of Digital Economy and Society (DES) Minister Chaiwut Thanakamanusorn, who indicated the auction should be pushed back until the new members of the NBTC board are appointed.

The recruitment of the new board members is now underway.

"The postponement is not meant to wait for the new NBTC board members as it remains unclear when they will be appointed," the source said.

Speculation was rife that the auction would have to be pushed back after only one firm -- TC Space Connect, a unit of SET-listed satellite service operator Thaicom -- participated in the auction.

TC Space Connect is one of the two firms that earlier bought bid envelopes to compete in the auction. The other is mu Space and Advanced Technology, a local satellite and space tech firm.

But mu Space did not show up to submit a bid request in line with the schedule on Monday.

For the auction, the first package consists of 50.5°East and 51°E slots with a reserve price of 677 million baht; the second is 78.5°E with a reserve price of 366.4 million baht; the third involves 119.5°E and 120°E at 393 million baht; and the last is for 126°E and 142°E for 364.6 million.

TC Space Connect wants 119.5°E slot in the third package, which is being used by Thaicom 4 satellite under a concession with the DES Ministry.

Thaicom's concession expires in September, after which Thaicom 4 has to be handed over to the DES Ministry.

TC Space Connect submitted the document that it is interested in bidding for 119.5°E slot in the third package and placed a guarantee deposit of 67.7 million baht -- calculated from 10% of the reserve price of the package with the highest reserve price or the first.

The NBTC's planned auction comes under pressure after Mr Chaiwut pointed out that the auction needs to be pushed back until the new NBTC board members come into office.

In many countries, the state can keep some slots for particular state purposes and let others be put for auction or allocation, he said, adding the auction needs thorough and prudent consideration to ensure optimum benefits for the country.

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