HANDOVER HEAT
MCOT insists it needs B50bn as compensation for the transfer of 144MHz of bandwidth on the 2600MHz range.
State-owned broadcaster MCOT insists it needs 50 billion baht as compensation for the handover of 144 megahertz of bandwidth on the 2600MHz range to the telecom regulator.
MCOT president Kematat Paladesh told the Bangkok Post the proposal was sent to the National Broadcasting and Telecommunications Commission (NBTC) in July. The regulator wants the frequency range for 5G mobile internet adoption scheduled for 2020.
“The 50 billion baht in compensation is based on a calculation about business opportunity for this spectrum bandwidth,” said Mr Kematat.
He stressed the company has to ask for maximum compensation, even though the bandwidth has not been used.
One of MCOT’s key revenues comes from a subcontract granting Bangkok Entertainment the operation of analogue TV Channel 3. MCOT receives an annual payment of 100 million baht from the deal.
As that contract is due to expire next year, concerns have been raised regarding MCOT’s income.
Mr Kematat insisted the demand for high compensation for the frequency recall has nothing to do with the contract expiring with Bangkok Entertainment.
“We did not determine our compensation by accounting for what would happen after Bangkok Entertainment’s concession expires,” he said.
In 2010, MCOT and its technology partner Playwork entered into an agreement to provide pay TV services operated via wireless broadband network on MCOT’s 2600MHz range. MCOT hoped the deal would usher in a new media business for the company, but it never got off the ground as the NBTC has not yet approved the move.
Mr Kematat said MCOT and Playwork are not to blame for this.
“If MCOT is compensated by the NBTC, the company has to hand some of the money to Playwork too,” said Mr Kematat.
He said carefully considering the company’s benefits is key, as MCOT is listed on the bourse and serves as a state-run firm.
“We need a fair discussion with the NBTC,” said Mr Kematat. “We don’t want to see the talks turning into a dispute that ends up in the courts.”
He said there has only been one talk between him and the NBTC’s subcommittee working for the 2600MHz recall. The discussion did not touch on the scope of compensation.
The amended NBTC Act gives options to the regulator to recall unused frequency ranges, which will be reallocated through auctions so as to create optimum benefits for the country. The NBTC must be fair in offering compensation to spectrum holders, said Mr Kematat.
“I have no idea when the two parties will reach a common ground in regards to compensation,” he said.
The call for 50 billion baht has received blowback from the regulator, with NBTC commissioner Prawit Leesathapornwongsa saying the proposal seems impossible as the figure is too high.
Mr Prawit said the NBTC has authorised two universities and the Thailand Development Research Institute to appraise compensation for the frequency recall. A figure has not been announced but is unlikely to be substantial as the spectrum remains unused, he said.
A small portion of bandwidth on the 2600MHz range is still held by the Royal Thai Army’s Signal Department.
Mr Prawit said the NBTC alone cannot successfully mobilise the 5G roll-out, saying it needs cooperation from all relevant parties, including vertical industries that are likely to directly benefit from 5G business use cases.
MCOT has to ask for maximum compensation, even though the bandwidth has not been used. KEMATAT PALADESH President, MCOT