Joint Investment Of Thaicom/AsiaSat Hits US$171m

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Joint investment of Thaicom/AsiaSat hits $171mn

Usanee Mongkolporn

Sirivish Toomgum

The Nation

A joint investment of US$171 million (Bt5.3 billion) is involved with the agreement of satellite operator Thaicom and Hong Kong's Asia Satellite Telecommunications (AsiaSat) to preserve the 120 degrees east orbital slot and to develop a satellite for providing services.

Information and Communications Technology Minister Anudith Nakornthap said yesterday that Thailand's attempt to reserve this slot with the International Telecommunication Union (ITU) was almost complete, pending the granting of a business licence for the satellite by the National Broadcasting and Telecommunications Communi-cation (NBTC).

The ministry had assigned Thaicom to reserve the slot with the ITU. The country's right to reserve the slot was due to end next month.

According to Thaicom's filing to the Stock Exchange of Thailand on Thursday, Thaicom's board of directors on November 10 approved the cooperation agreement with AsiaSat to preserve the 120 degrees east longitude slot and to develop and build a satellite to provide services. The company signed a collaboration agreement with AsiaSat on Thursday, with total investment of about $171 million.

AsiaSat will cover the initial investment and has agreed to let Thaicom make payments in instalments twice a year throughout the operating life of the new satellite, which is about 15 years.

It added that some conditions must be met before their agreement becomes effective, including obtaining approval from relevant government authorities to operate the satellite service.

Thaicom will be the owner of a number of transponders on the new satellite, not exceeding 14, and will provide service on the mentioned transponders as Thaicom 7. The investment covers the satellite, its launcher and insurance, ground system and project administrative cost. It is expected that Thaicom 7 will be completed and ready to provide services by early 2014. The new satellite will have 28 high-power C-band transponders serving Asia and Australia.

During the development of the new satellite, both operators will place an interim satellite in the 120 degrees east orbital slot.

Thaicom has informed the NBTC of its plan to apply for a business licence for the new satellite.

According to Bualuang Securities, the deal is positive for Thaicom. Thaicom 7 will expand the scale of its conventional satellite business and there is increasing demand for C-band transponders among Southeast and South Asian broadcasters.

The planned satellite will mean more bandwidth capacity to service broadcasting and video clients, as Thaicom's existing broadcasting satellite, Thaicom 5, is now fully utilised.

-- The Nation 2011-12-17