Thaicom to launch two more satellites by 2015
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Thaicom to launch two more satellites by 2015

Strategy to shift away from retail rental

Thaicom Plc (THCOM), the country's sole satellite service provider, set an aggressive three-year expansion plan with the planned launch of two new commercial satellites _ Thaicom 8 and Thaicom 9.

‘We‘are positioning Thaicom as a wholesale satellite operator, no longer a retail provider SUPHAJEE SUTHUMPUN CEO, Thaicom Plc

Thaicom hopes to return to profitability after a few years of losses.

The 41%-owned satellite subsidiary of InTouch Plc, formerly named Shin Corp and founded by fugitive former premier Thaksin Shinawatra, is also on the verge of changing its 20-year-old commercial logo next month, using InTouch's logo.

Suphajee Suthumpun, the chief executive of Thaicom, said Thaicom 8, also known as iPSTAR 2, will be launched by 2014 or 2015 when utilisation of the existing iPSTAR satellite rises to 40-50% of total capacity, up from 25% currently.

Thaicom 9 will be positioned at 50.5 degrees east to reserve the country's orbital slot, due to expire in November. It will be a broadcast satellite and the company aims to expand its footprint in the Middle East, Europe and Africa.

She said the Thaicom 8 broadband satellite, to be positioned in the orbital slot at 119.5 degrees, will cost no more than US$200 million. The satellite will serve the anticipated increase in broadband demand.

"The size, category and investment options for the satellites will conclude this year," said Ms Suphajee.

"Construction of the new satellites will begin once the utilisation of the 38-gigabit iPSTAR reaches half of the total and the company receives 30-50% of pre-orders for a new satellite."

Thaicom is preparing to launch the $160-million Thaicom 6 satellite in July, positioned at 78 degrees east.

It operates only two satellites now _ Thaicom 4 (iPSTAR) and Thaicom 5. Thaicom 4, 5 and 6 are under concessions of the Information and Communication Technology Ministry. Thaicom 7, 8 and 9 satellites will be under a licensing platform awarded by the National Broadcasting and Telecommunications Commission.

Thaicom underwent a reorganisation and business restructuring under Ms Suphajee's leadership. It switched its focus on bandwidth rental from iPSTAR to corporate users, big telecom operators and disaster recovery service instead of the retail segment.

"We are positioning Thaicom as a wholesale satellite operator, no longer a retail provider," she said.

Thaicom posted first-half losses of 187.59 million baht on revenues of 3.47 billion in 2011.

Thaicom has to share 20.5% of satellite revenue with the government from this year to 2016, up from 17.5% last year. The concession payment will increase to 22.5% in 2017 until terminating in 2021.

THCOM shares closed yesterday on the SET at 12.30 baht, unchanged, in trade worth 222 million baht.

InTouch keen on mergers, acquisitions

Suphajee Suthumpun, the new chairwoman for media and new business of InTouch Plc, plans to use a merger and acquisition strategy to expand this year.

The firm wants to develop new businesses to grow InTouch's revenue.

"Our new potential businesses will involve telecommunications, technology, media and content," said Ms Suphajee, who is also Thaicom's chief executive.

InTouch has three core businesses _ wireless communications, satellite and international businesses, and media and new businesses.

Ms Suphajee said InTouch plans to expand new businesses via both operations and capital.

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