Author Archives: Ian Chen

Thaicom speeds up satellite plan

Thaicom Plc, the country’s sole satellite service provider, is accelerating plans to launch Thaicom 8 by early 2016 to keep up with the exponential growth of the full digital industry.

Suphajee: Thaicom expects good growth

The planned 440-transponder broadband satellite, also known as iPSTAR 2, will cost about US$200 million and be positioned in the orbital slot at 119.5 degrees, said chief executive Suphajee Suthumpun.

“Our feasibility plan involving satellite categories and investment options for iPSTAR 2 will be completed by June, with the planned launch of the new satellite in the next three years,” she said.

Ms Suphajee said the accelerated move is to accommodate the greater use of iPSTAR 1, which has reached half of its capacity after the company signed a contract with China Telecom’s satellite unit.

Thaicom last week reached a framework agreement with China Telecom Satellite and Synertone Communication Corporation to proceed with the sale of iPSTAR bandwidth in China.

The use of iPSTAR in China alone accounts for 24% of its capacity.

The iPSTAR 2 satellite is also aimed at serving an anticipated exponential increase in local broadband bandwidth consumption, Ms Suphajee said.

Thaicom is also moving ahead with its plan to build two more satellites.

It expects to seal a deal to sell iPSTAR bandwidth in India in March, accounting for 10% of its capacity.

“To further boost iPSTAR utilisation, we are moving to expand into Indonesia, the Philippines and Myanmar this year,” she said, adding that it is focusing on corporate and enterprise users.

Thaicom is also preparing to launch its Thaicom 6 telecommunications satellite, worth $160 million, by the middle of this year.

“The commercial satellite has been already booked up to 40% of its capacity, reaching its utilisation goal or the breakeven point,” Ms Suphajee said.

The company also plans to launch broadcast satellite Thaicom 9, to be positioned at 50.5 degrees east, to reserve the country’s orbital slot, which expired last November. It plans to expand its footprint in the Middle East, Europe and Africa.

Thaicom attained profitability in the final quarter of 2011 after facing losses for several years. Thaicom’s concession is due to expire in 2021. The company has been in operation for 22 years.

Thaicom operates only two satellites _ Thaicom 4 (iPSTAR) and Thaicom 5. Thaicom 4, 5 and 6 are under concessions from the Information and Communication Technology Ministry.

Ms Suphajee said Thailand’s telecom and broadcast revolutions are being driven towards a paradigm shift to a “technology convergence” era, which means broadband and broadcast can now support all forms of communications on different networks.

She said Thaicom expects to see healthy growth this year in tandem with positive growth in the country’s broadband demand, thanks to the government’s policy of free public WiFi and the One Tablet per Child scheme.

Up to 60% of revenue will come from satellite services this year.

The company has sold its loss-making mobile unit in Cambodia.

http://www.bangkokpost.com/business/telecom/329897/thaicom-speeds-up-satellite-plan

News from the Bangkok Post

NBTC feels the heat on 3G contract

The National Broadcasting and Telecommunications Commission (NBTC) admitted it is in the “hot seat” to rule definitively on the controversial third-generation (3G) network contract between True Corporation and CAT Telecom.

The watchdog’s telecom committee fears that if it concludes the contract breaches the law, True’s 3G network operation must be immediately suspended because it is running without a licence.

In addition, the NBTC would face possible legal backlash from similar previously ignored deals: TOT’s 3G contract and CAT’s fibre-optic leasing contract.

Section 79 of the Telecommunications Business Act of 2010 stipulates the NBTC cannot ignore rules that require their authority and must decide all relevant cases using the same rule.

Jesada Sivaraks, secretary to the NBTC’s telecom committee chairman, conceded the committee did not raise the True-CAT issue at its meeting yesterday as initially planned.

NBTC’s fact-finding panel decided earlier that BFKT (Thailand), a unit of True subsidiary Real Future that signed an agreement with CAT, violated Section 67 of the Telecommunications Business Act by running a business without a licence.

The company constructed a 3G base station and leased the equipment to CAT.

Mr Jesada mentioned the BFKT contract was similar to two past cases: TOT’s 3G service operated by its subsidiary ACT Mobile without a licence; and CAT’s fibre-optic leasing contract, which was found not to have passed through the state’s proper procurement procedures.

http://www.bangkokpost.com/business/telecom/330093/nbtc-feels-the-heat-on-3g-contract

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NBTC mulls HD channel increase

The National Broadcasting and Telecommunications Commission (NBTC) may raise the number of high-definition (HD) channels covered under digital TV licences to be given this year.

It already plans to issue four digital TV licences for HD channels, but there is high demand from existing free stations wanting to broadcast in HD for public service purposes.

Thai PBS, Channel 5 and the National Broadcasting Services of Thailand (NBT) have asked the regulator to increase the number of HD channels allowed, said Col Natee Sukonrat, chairman of the NBTC’s broadcasting committee.

Under the master plan, the NBTC will issue 48 digital TV licences, covering 12 channels in standard-definition format for community service per area, another 12 SD channels for public service and 24 channels for commercial broadcasting.

Among the 24 commercial TV channels, four will be HD.

“We’re considering adding some HD channels for public service, but that will depend on the business environment and spectrum capacity. We’ll know once the digital broadcast trials for all six free TV channels have started in March or April,” he said.

The NBTC will sign a memorandum of understanding for the digital broadcast trials with Thai PBS next Friday and with MCOT and NBT later.

The transition to digital TV is proceeding, with evaluation of the spectrum value to be completed by Chulalongkorn University’s economics faculty next month.

“Thailand is the world’s first country to organise a spectrum bidding for broadcasting, but the committee must follow the rules faithfully,” said Col Natee.

Regarding facilities providers, Thai PBS and TOT Plc have already filed their proposals.

Other broadcasters such as Channel 5 and MCOT as well as telecom operators will also seek licences.

Col Natee said network providers will be issued licences in March using the “beauty contest” method, with those making the most feasible proposals receiving a licence.

Approval of licences for service providers is expected in March or April for public service channels and at the end of June for commercial channels.

Permits for community service channels will be issued by year-end.

Richard Womersley, the director of LS Telcom, the British software and systems company, said a good pilot project is most important for the digital transition, which requires frequency planning, proper timing and consumer awareness.

“Consumer awareness is essential for a successful transition to digital TV. The regulator and related parties must frequently communicate with consumers through all media channels,” he said.

Meanwhile, the NBTC’s broadcasting subcommittee yesterday agreed in principle to give away coupons to help consumers get through the digital transition.

A value for the coupons was not set, but they will be used to provide a discount when buying a new TV set or set-top box to receive digital broadcast signals.

Col Natee said the coupons’ value will depend on the spectrum value evaluation for the 24 commercial digital TV channels. This issue will be added into the bidding criteria for this category.

http://www.bangkokpost.com/business/telecom/330281/nbtc-mulls-hd-channel-increase

News from the Bangkok Post

Cedar set to sell stake in InTouch

Cedar Holdings, a unit of Singapore’s state investment firm Temasek Holdings, looks set to sell its entire shareholding in InTouch Plc (INTUCH) next year, says the head of Thailand’s largest telecommunications conglomerate.

The prediction is based on speculation that InTouch’s shares are rising to satisfactory profit levels, said Somprasong Boonyachai, a director and executive committee chairman at InTouch.

Cedar has sold 330 million InTouch shares or 10.3% of the total, InTouch said in a statement to the Stock Exchange of Thailand (SET) yesterday.

About 20% of the shares were sold to Thai investors and the rest to Thai NVDR Co.

Cedar now has 428 million shares in InTouch for a 13.3% stake.

“I believe Cedar’s share sale decision was based on its basic investment strategies and had nothing to do with InTouch’s management,” said Mr Somprasong.

He also said the share sale by Cedar has increased the free float of InTouch shares to 40% of paid-up capital, higher than the minimum free float of 15% set by the SET.

The Cedar move should be good news for InTouch, as it could reflect a higher value for the shares, he said.

Mr Somprasong said Cedar has gradually sold many InTouch shares over the years thanks to rising demand and sound telecom share value.

In response to any potential queries from minority shareholders, the public or other stakeholders, InTouch has already asked Aspen Holdings Ltd, another major stakeholder, whether it intends to sell its shares, he said.

But Aspen said it has no immediate plans to sell its shares and that it remains confident in the company’s business and management.

Cedar last January sold 200 million InTouch shares in a deal that could raise as much as US$261 million.

The 6.2% stake was sold at 40.10 to 41.60 baht a share.

Cedar had a 44.2% stake in Intouch early last year, and the sale increased InTouch’s free float to 20.4% at that time.

An industry analyst said the share sale by the Singaporean telecom units are aimed at reducing the risk of legal disputes over allegations of foreign dominance and avoiding breaches of the Foreign Business Act.

Unlike Total Access Communication (DTAC), which is majority-owned by Norwegian Telenor and has several foreigners in high-ranking management positions, InTouch has very few foreign representatives from Temasek.

Last year, DTAC founder Boonchai Bencharongkul and his family raised their stakes in DTAC ahead of the third-generation licence auction on the 2100-megahertz spectrum.

Shares of INTUCH closed yesterday on the SET at 65.25 baht, down 1.75 baht, in trade worth 27.1 billion baht.

http://www.bangkokpost.com/business/telecom/330266/cedar-set-to-sell-stake-in-intouch
News from the Bangkok Post

SSO chided for database shutdown

The labour minister has blasted the Social Security Office (SSO) for allowing a contractor to shut down the office’s social security database.

Padermchai: Wants explanation

The database, which administers the Social Security Fund, went offline on Dec 31, 2012, after the SSO’s contract with the SOA Consortium expired.

The database is now being administered manually.

Minister Padermchai Sasomsap said he had ordered the SSO not to extend its contract.

He made the order more than a year ago because the computer system was not functioning well, he said.

The contract was for five years and was worth 2.3 billion baht.

The minister said the SSO had more than enough time to arrange another database and should have been able to avert the shutdown.

The SSO allowed the contractor to hold the social security system data, which gave it leverage, he said.

The SOA Consortium had warned it would shut down the system unless the SSO extended its contract.

“We ordered the SSO to solve the problem,” Mr Padermchai said. “The SSO had been aware for a year that the contract with the company would not be extended.

“It should have found a solution or a new contractor [in place] to maintain the database.”

He has ordered the SSO to provide an explanation this week.

According to the minister, the SOA Consortium demanded 70-80 million baht for a three-month contractual extension. Pending the transfer of the data, SSO officials will serve customers manually.

The SSO plans to spend 10 million baht to purchase equipment to develop its own database. It expects its database to come back online in March this year.

Wilaiwan sae Tia, deputy chairwoman of the Thai Labour Solidarity Committee, said her organisation told the SSO it should have more than one database contractor, to prevent the data from being used as leverage.

The SSO rejected the recommendation, she said.

Employers and employees might doubt the SSO’s transparency while it handles the Social Security Fund’s paperwork manually, she said.

http://www.bangkokpost.com/business/telecom/330644/sso-chided-for-database-shutdown

News from the Bangkok Post

Dems urge troops to sue, not protest

Soldiers should seek legal action rather than stage protests if they feel insulted by the media, Democrat list-MP Ong-art Klampaibul said yesterday.

He was commenting after troops staged rallies on Friday and Saturday outside the office of the ASTV Manager newspaper.

They were angered by the newspaper’s criticisms of army chief Gen Prayuth Chan-ocha.

The paper’s comments were sparked by a difference in opinion between the army chief and ASTV Manager over the pending ruling by the International Court of Justice (ICJ) on the territorial dispute between Thailand and Cambodia over the Preah Vihear temple.

An opinion piece published on Friday on the ASTV Manager website compared Gen Prayuth to “a woman on her period” and said he had failed in his duties as army chief.

It made the comment in response to Gen Prayuth’s criticisms of the newspaper on Thursday for arguing the ICJ does not have the jurisdiction to rule on the border dispute.

Mr Ong-art said it was improper for the soldiers to protest in uniform and their rallies, while peaceful, could be viewed as acts of intimidation.

He said the media’s right to free expression should not be restricted by anyone.

The right of the media to present news and opinion is guaranteed by the constitution, he said.

However, he said the media itself is not above the law and anyone who is insulted by the media should rely on legal proceedings to protect their rights.

The soldiers should look at legal channels to protect themselves rather than resort to threats or intimidation, Mr Ong-art said.

He said he believed the protests only represented the views of a small number of soldiers, and did not reflect the position of the army as a whole.

Gen Prayuth on Saturday ordered his troops to call off the protest.

Lt Gen Phaiboon Khumchaya, commander of the First Army Region, said he granted the soldiers permission to stage the protest, but told them to avoid breaking any laws and to respect others’ rights. The troops did not resume their protest yesterday.

Lt Gen Phaiboon insisted the rallies were not meant to intimidate the media.

He said the soldiers’ morale had been damaged by the ASTV Manager article and they were merely acting to protect their superior.

http://www.bangkokpost.com/business/telecom/330639/dems-urge-troops-to-sue-not-protest

News from the Bangkok Post

Clampdown on prepaid phone expiry

The National Broadcasting and Telecommunications Commission (NBTC) has given five mobile phone operators until Friday to scrap the expiry date on prepaid mobile credit.

NBTC secretary-general Thakorn Tantasit said on Monday he had informed each mobile operator — Advanced Info Service (AIS), Total Access Communication (Dtac), True Move, TOT Plc and CAT Telecom — to remove the expiry period on refills for prepaid numbers or face a 100,000 baht fine per day.

However, the NBTC will later allow each operator to propose an expiry date for its prepaid services, but did not say when that will be introduced. The proposed dates will be considered and then the number of days will be decided with the agreement of all the operators.

The watchdog also ordered the phone operators to register prepaid customers’ personal data by recording their 13-digit ID numbers. Violators are to be fined 20,000 baht a day.

The regulation under which mobile phone calls made from Jan 1, 2013 are set by law to a maximum rate of 99 satang/ a minute will also take effect this Friday.

Earlier this month, the NBTC fined the five mobile phone operators a total of 140.32 million baht for failing to properly register prepaid SIM cards as well as failing to revoke the expiry date on prepaid mobile services.

http://www.bangkokpost.com/business/telecom/330784/prepaid-phone-expiry-date-banned
News from the Bangkok Post

MCOT rejig will broaden content reach

MCOT Plc, the operator of Modern Nine TV, is repositioning itself as a “master content management” business in an effort to create a new core revenue stream before its concession revenue ends this year.

The state-owned broadcaster has leased concessions to TrueVisions and Channel 3′s BEC World, both of which are due to expire by the end of 2013.

“We aim to produce content to supply to other TV channels and digital TV operators,” said executive vice-president Sura Gaintanaslip.

A master content management business is aimed at broadcasters, which are the new players in the industry and remain short of capability and human capital to produce standard quality content such as non-profit organisations, the government sector and educational institutes.

With regard to educational institutes such as Abac University, Mr Sura said MCOT is interested in acquiring licences to operate digital TV for public-purpose services.

He said under the new model, it would be a production house that offers tailor-made content to other broadcasters and it also seeks revenue from its existing content by selling programmes to other channels as it believes that there is a demand from the new digital TV licence holders.

“The new business model will generate a higher margin particularly the content-producing business, either made to order or maximising returns from old programmes,” said Mr Sura.

SET-listed MCOT reported revenue of 4.37 billion baht in the first nine months of 2012. Net profit was 1.28 billion baht.

Mr Sura believes the upcoming digital terrestrial TV service will make an impact on satellite TV operators, thanks to the advantages of digital technology in terms of clearer pictures and interactive communications.

He acknowledged MCOT’s revenue will dip once its concessions expire.

“We need to shift to becoming a master content management provider, supported by our talent management and modern broadcasting infrastructure nationwide,” said Mr Sura.

MCOT is reconsidering applying for a digital TV licence to operate three TV channels, down from the five planned earlier, he said.

http://www.bangkokpost.com/business/telecom/330833/mcot-rejig-will-broaden-content-reach
News from the Bangkok Post

NBTC sets SIM card deadline

The National Broadcasting and Telecommunications Commission (NBTC) has set a Friday deadline for mobile operators to start properly registering prepaid SIM cards and scrapping the expiration date on prepaid mobile credits, or face tough fines and other penalties.

The resolution was reached Monday at a meeting between NBTC commissioners and mobile operators’ representatives.

The watchdog threatened to double or triple the fine currently imposed on the operators if they failed to comply with the rules, said Takorn Tantasit, the NBTC’s secretary-general.

Initially, the NBTC ordered a fine of 80,000 baht per day on operators failing to comply with the prepaid registration rule. This is in compliance with Section 64 of the 2001 Telecom Business Act which requires operators to register prepaid customers’ personal data.

Effective from Jan 3, the four operators _ Advanced Info Service (AIS), Total Access Communication (DTAC), TOT Plc and CAT Telecom _ are supposed to pay 14.6 million baht each for retroactive fines dating from July 6, 2012.

The NBTC has also imposed an additional 100,000 baht per day on AIS, DTAC and True Move if they still set an expiration date on their prepaid mobile services.

The three operators are supposed to pay retroactive fines of 21.9 million baht each dating from May 30 to Jan 3.

The NBTC issued warning letters to the operators last week.

Mr Takorn said identification cards will be required from this Friday for customers who want to buy a prepaid SIM card from mobile operators.

Also, operators must scrap the limitation on the expiration date for prepaid mobile credits.

Customers who found any operators failing to comply with the rule can file complaints at the NBTC’s office.

Mr Takorn said yesterday’s resolution also wanted operators to set all mobile tariff rates at no higher than 99 satang a minute.

“The regulator needs to strictly govern the issues in the most efficient way as soon as possible as part of its plan to reorganise the industry’s regulations under the new standard,” he said.

The NBTC yesterday reported it received 2,265 complaints last year, up from 2,184 in 2011.

True recorded 780 complaints, of which True Move registered 322 complaints, TrueMove H 259, True Internet 107, True Corp 70, True Life Plus 21, and TrueVisions 1.

http://www.bangkokpost.com/business/telecom/330819/nbtc-sets-sim-card-deadline

News from the Bangkok Post

NBTC to subsidise digital switch

All 22 million households in Thailand look set to receive a subsidy package to upgrade to a digital television set or set-top box to ease the nationwide transition to a digital TV system.

The broadcasting committee of the National Broadcasting and Telecommunications Commission (NBTC) approved in principle yesterday a decision to give away discount coupons to help viewers.

A discount coupon will be provided for people who want to buy a new TV set or set-top box to receive digital TV signals.

However, Natee Sukolrat, chairman of the broadcast committee, said the coupon value has not yet been set.

A digital set-top box costs around 800-1,000 baht, which means the total cost of the subsidy for the NBTC could be as high as 22 billion baht.

“The coupon value will depend on the valuation we receive in bidding for the spectrum for the 24 digital TV channels,” Col Natee said.

Digital broadcasts will increase the number of channels available to viewers, from the current total of six to as many as 48. The government is auctioning off spectrum for 24 channels, while the other 24 will be kept for public services purposes.

The auction will be held and licences distributed this year.

He said the coupon costs will be taken into account when drawing up the spectrum bidding criteria.

The NBTC expects to receive an evaluation of the spectrum’s value from Chulalongkorn University next month, he said.

Thawatchai Jittrapan, an NBTC commissioner, said evaluations of the spectrum’s value initially ranged from 100 million baht to 1 billion baht per licence.

Col Natee said the money raised from the auction will be delivered to the universal service obligation (USO) fund, as the 2007 constitution stipulates that spectrum is a national resource. “We need approval from the USO committee for the subsidy coupon scheme, before passing the proposal on to the NBTC’s board for endorsement in February,” he said.

“We aim to distribute the coupons to consumers by July.”

http://www.bangkokpost.com/business/telecom/330803/nbtc-to-subsidise-digital-switch
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