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Satellite firm eyeing non-orbital revenue
Thaicom, the country’s sole satellite service provider, wants to continue diversifying into various non-orbital segments.
Thaicom, the country’s sole satellite service provider, wants to continue diversifying its business structure, tapping into the digital business ecosystem to create a revenue stream from non-satellite services.
The company’s diversification spans innovative technology, robotics, artificial intelligence (AI) and a focus on retail business to capitalise on the consumer market, said incoming chief executive Anant Kaewruamvongs.
Thaicom also wants to maximise operations of its existing satellite transponder capacity to ensure greater revenue.
“The satellite business no longer covers basic telecom, so players have to adjust to technological development and business models to cash in on varied businesses and cope with over-the-top, which directly affects the satellite TV business,” Mr Anant said.
Thaicom has yet to make a decision on moving ahead with a new satellite launch after the company late last year scrapped the plan to send Thaicom 9 to the sky in 2019.
Thaicom had suspended construction of the satellite for a year.
The scrapped plan last year followed prolonged uncertainty about the new operating fee structure for satellite business handed down by the government. Consequently, prospective customer Softbank cancelled its plan to rent 30% of Thaicom 9’s transponder capacity.
Thaicom currently operates three satellites under a concession regime: a broadband satellite, Thaicom 4 (iPSTAR); and two broadcasting satellites, Thaicom 5 and Thaicom 6.
Thaicom 4 is in the orbital slot at 119.5 East and Thaicom 5 is at 78.5 East. The concession of Thaicom 4 and Thaicom 5 under the Digital Economy and Society Ministry will expire in 2021.
Thaicom also operates Thaicom 7 and Thaicom 8 under the single licence of the National Broadcasting and Telecommunications Commission, requiring a 5.75% licence fee payment to the NBTC.
Thaicom 7 was launched into orbit in 2012 and began operating in 2014. Thaicom 8 was launched into orbit in May 2016.
The government is forcing Thaicom 7 and Thaicom 8 to return to the old concession system instead of a licensing regime, reasoning that the existing 5.75% licence fee payment to the NBTC is too low compared with the 20.5% revenue sharing of the concession regime.
Thaicom has been negotiating with government representatives, but no settlement has been reached.
Mr Anant said he expects the company and the government to settle two issues by the end of 2018: the operation of Thaicom 4, 5 and 6 after the concession ends and the resolution of the dispute of Thaicom 7 and 8.
Mr Anant is chief executive and managing director of CS Loxinfo Plc, a subsidiary of Thaicom. He was recently appointed Thaicom’s chief executive, effective May 1, to replace Paiboon Panuwattanawong, who resigned from all his positions at Thaicom.