Crisis looms for set-top boxes
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Crisis looms for set-top boxes

New rule limits who can import devices

Satellite TV set-top boxes are displayed for sale at Khlong Thom Market. The devices are in danger of becoming scarcer in the near future. PATTARACHAI PRECHAPANICH
Satellite TV set-top boxes are displayed for sale at Khlong Thom Market. The devices are in danger of becoming scarcer in the near future. PATTARACHAI PRECHAPANICH

A shortage of satellite TV set-top boxes may be looming due to the limited number of import licences by the National Broadcasting and Telecommunications Commission (NBTC).

The NBTC's broadcasting panel has imposed a new rule that such licences can be issued only to satellite TV network companies.

Previously, both satellite TV platform operators and independent set-top box companies could import satellite set-top boxes.

They only had to inform the regulator which satellite networks their boxes were compatible with.

The objective of the new rule is reportedly to help the regulator collect more fees from satellite TV platform operators, which tend to use separate subsidiaries for importing set-top boxes and managing the satellite TV network on an over-the-air system.

With the relatively low revenue of the subsidiaries, they paid less for the 2% annual fee and 2% to the universal service obligation fund as required, as the fee calculation was based on annual revenue.

Manop Tokarnka, president of the Satellite TV Network Providers Club, said the new rule threatened to cause a shortage of satellite TV set-top boxes since no new import licences had been issued since early last month.

"It's such an unfair rule," said Somporn Teerarochanapong, chief executive of PSI Holdings, the country's largest satellite TV platform operator.

He said before the regulator enforced the new rule, it should hold public hearings to gather opinions from private operators about how it would affect them.

Satellite TV network providers have been forced to shoulder a huge financial burden due to the NBTC's licence regime and the emergence of digital TV, Mr Somporn said.

He said with competition already intense among platforms, collecting the annual fee based on parent companies' revenue would increase their cost burden.

When they import set-top boxes, satellite TV network providers will have to pay 10 baht for an import stamp and 7% value-added tax, but the profit margin for set-top boxes is already low, Mr Somporn said.

"It's not too late for the NBTC to reconsider this rule,"  he added.

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