National Telecom (NT) has decided to turn its back on the satellite orbital slot auction slated for Aug 28, leaving TC Space Connect, wholly owned by SET-listed satellite service provider Thaicom, as the sole contender.
NT, a merged unit of CAT Telecom and TOT, failed to submit its bid request with a bank guarantee by the Wednesday deadline.
NT bought a bid envelope for the auction on Aug 6, which was the final day it could purchase one, fuelling speculation it might be interested in making a foray into the satellite business through the auction.
A source from NT management who requested anonymity said the company bought the bid envelope to study all related conditions and requirements for the bid winners.
"Participating in the satellite orbital slot auction is not the only way to operate a satellite business," the source said.
"NT can do it through other models, such as operating a satellite gateway business for foreign satellites or forming a partnership with others to provide satellite services. Building a new geostationary satellite and sending it to space is not a favourable option for NT because it is hard to expect a return from the investment."
Digital Economy and Society Minister Chaiwut Thanakamanusorn said he never instructed NT to participate in the auction.
"This is up to NT's management and board," he said.
"My only advice was NT should have a business strategy for the satellite business in the space economy."
Mr Chaiwut said the satellite business is also a matter of national security.
There are four satellite orbital slot packages up for auction.
The first consists of 50.5°East and 51°E slots with a reserve price of 677 million baht; the second is 78.5°E with a reserve price of 366.4 million; the third involves 119.5°E and 120°E with a reserve price of 393 million; and the last is for 126°E and 142°E with a reserve price of 364.6 million.
The auction marks the transition of the country's satellite business from a concession model to a licensing regime.
On July 7, the National Broadcasting and Telecommunications Commission board decided to postpone the auction to Aug 28 from July 24 after TC Space Connect was the only firm that participated in the bidding.
