Thaicom Plc, the country's sole satellite service provider, plans to partner with state enterprise CAT Telecom to promote the industry and reduce the public perception Thaicom still has political links to its founder Thaksin Shinawatra.
The partnership could help Thaicom with upcoming bids on the operation rights of the Thaicom 4, 5, and 6 satellites via the public-private partnership (PPP) model after concessions expire in 2021.
CAT Telecom could also complement Thaicom's satellite business in the long run, as well as Thaicom's international ambitions.
Thaicom chief executive Anant Kaewruamvongs said the company has yet to begin official discussions with CAT's top management on the issue. The company will approach CAT as soon as the government finishes drafting details and conditions for satellite business under the PPP model.
The proposed partnership follows the cabinet's resolution on Jan 29, stating the country will run the satellite industry through a PPP after concessions end in 2021.
Thaicom operates three satellites under a revenue-sharing based concession regime -- Thaicom 4 or iPSTAR, Thaicom 5 and 6, all used for broadcasting.
Mr Anant said it is too early to know the details of the partnership or PPP model. The PPP model sees profits shared between parties, with all assets of Thaicom 4, 5 and 6 satellites owned by the state after 2021.
"We are Asia's leading satellite operator with intensive know-how and experience, but a partnership with CAT benefits the nation and the whole region," he said.
CAT had been a partner of International Telecommunications Satellite Organization or INTELSAT, a communications satellite service, before INTELSAT was privatised to become Intelsat Corporation. The company has three satellite ground stations nationwide in Nonthaburi, Chon Buri and Udon Thani provinces.
"We are open to discussing various forms of collaboration under the PPP model, especially with CAT and we expect CAT will also be open for the chance to work with Thaicom," Mr Anant said.
He accepted there may be other interested companies bidding for the right to operate the satellites after concessions expire.
Mr Anant also urged the government to speed up drafting conditions for the PPP, which are expected to be completed by the end of this year. The permanent secretary of the Digital Economy and Society Ministry is handling the issue.
If the PPP details are not drafted within this year, the end of concessions bidding could be delayed, Mr Anant said. More importantly, there are many corporate customer using satellite transponders for Thaicom 4, 5 and 6, including big telecom operators and broadcasters in the region whose services could be affected.
"Some existing customers have begun to ask how the government will handle the operations of Thaicom 4, 5 and 6, which they rent in a communications capacity," Mr Anant said.
Thaicom also operates Thaicom 7 and 8 under a single licence from the National Broadcasting and Telecommunications Commission (NBTC), which requires only a 5.75% licence fee payment to the NBTC. Thaicom 7 was launched into orbit in 2012 and has been in operation since 2014. Thaicom 8 was launched into orbit in May 2016.
The government previously forced Thaicom 7 and 8 to return to the old concession system instead of a licensing regime, saying the existing 5.75% licence fee payment to the NBTC was too low compared with the 20.5% revenue sharing under the concession regime.
