Thaicom Plc, the country’s sole satellite service provider, is considering relocating its local satellite base to another country in Asia Pacific where it has satellite footprints in order to avoid further political risks, according to a source.
Thaicom’s satellite operating base in Lat Lum Kaeo district, Pathum Thani.
The review comes after the company feels increasing uncertainty in its long-term business operations and development in Thailand after the National Broadcasting and Telecommunications Commission (NBTC) took six months to approve Thaicom’s proposal to operate a new broadcasting satellite, Thaicom 8, without having to apply for a new operating licence.
"The plan shows how Thaicom is getting impatient and unsure about its future, uncertain whether the company will suffer similar incidents again in the future," said the source, who is familiar with the issue.
Yesterday, the NBTC unanimously voted to allow Thaicom to operate the new satellite with no requirement for a new licence. This means Thaicom can operate the Thaicom 8 satellite under the same 15-year licence of its planned Thaicom 7 satellite.
The regulator was reluctant to approve Thaicom's proposal because it feared opposition from the anti-government protesters who believed the country's satellite industry is being monopolised by Thaicom, which was founded by ousted prime minister Thaksin Shinawatra. It was sold to Temasek Holdings of Singapore in 2006.
Under the licensing regime, Thaicom needs to pay a licence fee of 5.75% of total revenue to the NBTC for the Thaicom 8, an amount equal to that of the Thaicom 7 satellite.
The NBTC in mid-2012 granted a licence for Thaicom 7, the first licence-based satellite which is expected to be launched in mid-2014 in the 120 degrees east orbital slot. Thaicom obtained a 30-year concession from the Information and Communication Technology Ministry.
Thaicom obtained a 30-year concession from the ICT Ministry which is due to expire in seven years.
"Whether the regulator will allow or reject Thaicom 8 to operate under the licence system, the company is moving ahead with its relocation study plan," said the source who asked not to be named.
"Thaicom is looking to move its local satellite hub to one of the 13 countries where the company has satellite footprints in Asia Pacific," the source said.
Chief executive officer Suphajee Suthumpun declined to elaborate on the speculation saying only that as a Thai company, Thaicom intended to continue its business in the country in the nation's interests.
She praised the NBTC for approving the company's proposal, saying any further delay would do more harm than good to the nation.
The approval will enable Thaicom to start procedures with the International Telecommunication Union (ITU) to reserve an orbital position and frequency before launching the Thaicom 8 satellite, said Ms Suphajee.
Thaicom planned to launch Thaicom 8 on the 78.5 degrees east orbital slot by 2016 to deal with high satellite broadcasting demand. The satellite will cost around US$180 million, having 20-30 satellite transponder capacity.
The filing process for the new satellite would take several months. Construction of the new satellite would take at least two years, she added.
Ms Suphajee said the six-month delay in the NBTC's approval process has forced some of its customers to shift to use services from other foreign satellite service providers, which earn the whole service revenue without having to share it with the Thai government, unlike Thaicom. They do not have to pay taxes to the Thai government. They also are not required to be governed under the Thai regulators' frameworks, she added.
Ms Suphajee urged the NBTC to encourage the country's satellite industry to promote the kingdom as a new "satellite operating base" in Asia.