Thailand's NRC to consider limits on shareholdings in broadcasters

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NRC to consider limits on shareholdings in broadcasters
Watchiranont Thongtep
The Nation

BANGKOK: -- A member of the National Reform Council has suggested limiting direct and indirect cross-holdings in radio and TV broadcasting to protect freedom of the media and civil rights.

NRC member Paiboon Nititawan, who is also a member of the Constitution Drafting Committee, said yesterday that he intended to submit this idea to drafters of the new constitution.

"It is undeniable that broadcasting service has direct impacts on civil rights and freedom. To protect the public interest and prevent a media monopoly in the near future, limits for holding shares in the broadcasting sector must be in place," he said.

Paiboon raised the issue at an academic seminar on the transition from government-centric to market-based regulations, organised by the law faculty at Chulalongkorn University.

He said he was concerned about mergers and acquisitions in the broadcasting sector, particularly after 24 digital TV channels came into being this year. This change had made the industry more attractive for investors.

Last week, software provider Solution Corner (1998) acquired a 12.27-per-cent stake in Nation Multimedia Group, publisher of The Nation, and 1.22 per cent in GMM Grammy on the Stock Exchange of Thailand. Its acquisition of NMG shares has raised questions over whether this violates a cross-holding law governing the news-channel category, under the rules the National Broadcasting and Telecommunications Commission (NBTC) set for its digital-TV licence auction.

For the new constitution, Paiboon said he would persuade his panel to determine a limit and define "major shareholder" in the broadcasting sector. The limit would involve not only the percentage of total shares in a stake, both directly and indirectly, held by a person, but also de facto relationships and nominees.

He said this was a key part of national media reform related to the roles of the NBTC.

Apart from this, he suggested another new role for the broadcasting regulator should involve national frequency allocation for broadcasting and telecommunications services and regulating them for the public interest.

Another speaker, Somkiat Tangkitvanich, president of the Thailand Development Research Institute (TDRI), also raised questions about the current role of the NBTC, particularly its accountability.

"Despite being established as an independent agency, the NBTC should be examined by other independent agencies such as the National Anti-Corruption Commission, the Office of the Auditor-General and the Parliament."

NBTC commissioner Thawatchai Jittrapanun said that in terms of competition regulation, the NBTC's broadcasting committee was working alone, unlike in developed countries like the United States, where the Federation Communications Commission works with the Federal Trade Commission to govern the broadcasting and telecom sectors to protect consumers' rights.

Source: http://www.nationmultimedia.com/politics/NRC-to-consider-limits-on-shareholdings-in-broadca-30250549.html


-- The Nation 2014-12-24

[FangFerang]

?

How does limiting shareholders guarantee transparency, fairness, or attract investors? Proxies are rampant, fairness implies a level playing field, and foreign investors are not interested in being marginalized.

[rickirs]

"... limiting direct and indirect cross-holdings in radio and TV broadcasting to protect freedom of the media and civil rights."

Will this affect the Royal Thai Army which operates TV Channel 5, MCOT (Channel 9)? I'm sure that the NCPO will cite national security to exempt the RTA.

[Thai at Heart]

I think they should limit former and current army member sitting on boards full stop.

[wabothai]

Protects whose interests ??????

Transparency garantees freedom of speech.