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Bangkok Post
Bangkok Post
Business

Satellite auction set to raise B700m for NBTC

Winning bids of at least 700 million baht are expected from the auction of satellite orbital slots this Sunday, says the National Broadcasting and Telecommunications Commission (NBTC).

The telecom regulator yesterday approved the participation of three companies in the auction following qualification checks.

The trio comprise Space Tech Innovation, a subsidiary of SET-listed satellite service provider Thaicom; telecom state enterprise National Telecom (NT); and Prompt Technical Services.

The auction offers five slot packages, covering 50.5° East and 51° E with a starting price of 374 million baht (first package); 78.5° E with a starting price of 360 million baht (second package); 119.5° E and 120° E with a starting price of 397 million baht (third package); 126° E with a starting price of 8 million baht (fourth package); and 142° E with a starting price of 189 million baht (fifth package).

A mock auction is scheduled for the day before the actual auction.

An industry source who requested anonymity believes Space Tech Innovation wants to grab the 119.5° E slot to serve its broadband business, while NT is aiming for the 78.5° E slot for tasks related to the government's national space economy policy.

AM Thanapant Raicharoen, an NBTC commissioner, said the second, third and fourth packages were expected to interest the bidders.

The 119.5° E slot may be in high demand because it was assigned to cater to broadband satellites, based on a filing with the International Telecommunication Union, he said.

The three companies have passed qualification checks, including nationality status, management experience for satellite or related businesses, financial capability, and the potential to launch a satellite within the next three years, AM Thanapant said.

Space Tech Innovation is affiliated with satellite service provider Thaicom, while NT was founded through the merger of state enterprises TOT and CAT Telecom in January 2021.

Prompt Technical Services has engaged in a very-small-aperture terminal business for oil rigs.

AM Thanapant said the regulator expects to gain 700 million baht from the auction bids.

"While the NBTC gains some money from the auction, it wants to support satellite business development through the licensing regime under the country's telecom business master plan," he said.

For the third package, the winning bidder is required to reserve one transponder per broadcast satellite, or 400 megabits per second capacity per broadband satellite, for state use and public services without charge.

The bid conditions state if government agencies want to use more satellite capacity than stipulated in the conditions for the 119.5° E and 120° E slots, they must not bid for this package.

State agencies can negotiate with the winning bidders for such usage.

The source said NT has been assigned to bid for the 78.5° E slot, which will be used to serve the government's national space economy policy.

NT plans to hold talks with the winning bidder of the 119.5° E slot to use it for broadband services, in line with the rule, the source said.

AM Thanapant said the auction will start at 10am on Sunday, with 20 minutes for each auction round.

Bidders are required to increase their bid prices by 5% in each round, he said.

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