The telecom regulator has urged the Digital Economy and Society (DE) Minister to settle the operating fee structure for the latest two satellites of Thaicom Plc by May in order to put an end to over a year of confusion in the local satellite industry.
Takorn Tantasith, secretary-general of the National Broadcasting and Telecommunications Commission (NBTC), said the cabinet in 2016 ended up with a resolution to force SET-listed Thaicom to pay an annual concession fee of 20.5% for its latest two satellites, Thaicom 7 and 8, a sharp increase over its 5.75% licence fee.
"If the DE Minister decides to bring the Thaicom case to the Administrative Court, Thaicom has the right to appeal to the Central Administrative Court if the company disagrees with the verdict," he said.
Thaicom, the country's sole satellite service provider, operates under the terms of a concession signed with the ICT Ministry, the DE Ministry's predecessor, until the contract expires in 2021.
Thaicom now operates three satellites under a concession regime: Thaicom 4 (iPSTAR), a broadband satellite; and Thaicom 5 and Thaicom 6, both broadcasting satellites.
But Thaicom 7 and 8 are operated under a single licence granted by the NBTC, which requires the company to pay a licence fee of only 5.75% of total revenue to the NBTC, compared with the 20.5% rate that will be seen under the 15-year concession system.
Thaicom 7 was launched into orbit in 2012 and began operating in 2014. Thaicom 8 was launched in May 2016.
Thaicom said that the satellite business has been governed by the NBTC under the licensing regime since 2010 in accordance with the 2010 Frequency Allocation Act, which stipulates that communication satellites are categorised as part of the telecom business.
Mr Takorn said the DE Minister should focus on settling the confusion around Thaicom 7 and 8 within 30 days to help establish a new operating fee structure for the local satellite industry.
DE Minister Pichet Durongkaveroj said that a working panel of the DE committee, chaired by Prime Minister Prayut Chan-o-cha, is drawing up measures to resolve the issue.
Mr Pichet said that confusion over the regulations in the local satellite industry have existed for years, as the industry has been governed by both the NBTC and the DE Ministry.
Under current regulations, a satellite service provider must apply for a satellite operating licence from the NBTC, while the DE Ministry works with the International Telecommunication Union to arrange orbital slots in space for a satellite launch.