NBTC to take up with government woes of digital TV operators

NBTC chairman Sarana Boonbaichaiyapruck said it was difficult to predict the future of the Thai TV industry in the next four years before digital TV licences expire in 2029.

He said audience behaviour had changed significantly due to disruption by Over-The-Top (OTT) media service platforms, such as YouTube, video streaming and Internet Protocol TV (IPTV).

NBTC would need to consider if there were any laws to supervise technology context to mitigate their impact on the remaining 15 digital TV operators, he said.

He added that it would be possible if the NBTC and Association Of Digital Television Broadcasting (ADTEB) sought solutions from the government because digital TV operators were severely affected by a decline in revenue and audience numbers.

Sarana affirmed that it was not fair that OTT media platform operators could generate revenue without cost. What NBTC can do is look for laws to supervise these businesses, he said.

He said NBTC would discuss with ADTEB on how to allocate the 3500-MHz spectrum if the association does not want it to be used for the telecommunication business. 

He said the Act on the Organisation to Assign Radio Frequency and to Regulate the Broadcasting and Telecommunications Services should be amended to cancel bidding for digital TV licence and look for alternative ways of allocation.

Three scenarios 

NBTC commissioner Pirongrong Ramasoota said the commission was working on guidelines for online migration of the Thai TV industry once the digital TV licence expires.

The commission has opened discussions to study the feasibility of launching a national streaming platform, which would integrate digital TV channels, advertisements and consumer data, she explained.

She outlined three scenarios for Thailand’s digital TV industry:

● Thai digital TV industry collapses as the government does not launch measures to supervise OTT platform operators. This results in domination of OTT platforms and loss of advertisement revenue for digital TV operators, as well as lack of access to public services for the poor and the elderly.

● Digital TV operators are able to compete against OTT platform operators, and are encouraged to enter the video streaming market. However, the competition aims to dominate Thai market share similar to big fish eating little fish.

● Thai digital TV platform enters the global market under the supervision of the Regulatory Authority for Digital Audiovisual Media and Thai Audiovisual Industry Council.

ADTEB chairman Suparp Khleekajai

Alternatives to digital TV licence 

ADTEB chairman Suparp Khleekajai advised the NBTC to extend the tenure of the current digital TV licence or hold a qualification contest for operators instead of inviting bids.

He said the Act on the Organisation to Assign Radio Frequency and to Regulate the Broadcasting and Telecommunications Services, which stipulates the holding of an auction to allocate digital TV spectrum, should be amended.

“We want to hear the reply before the digital TV licence expires,” he said, adding that digital TV operators would meet the NBTC soon.

He affirmed that the association could clarify on the legal amendment to the House of Representatives, saying that MPs have already witnessed the impact of digital TV licence bidding on operators. 

Pravit Maleenont, former executive director of Bangkok Entertainment (right)

Painful lesson

Digital TV operators affirmed that bidding for licences had inflicted losses on their operations. They called for a five-year licence extension to compensate operators who faced losses.

Takonkiet Viravan, the CEO of The One Enterprise, the operator of ONE31 and GMM25 digital TV channels, said the company had faced difficulties in business operations for a decade.

However, the company had survived due to its attractive programmes and audience support, he said.

He expects more digital TV operators to close their business if they have to participate in the bidding again. He made it clear that he would not participate in the bidding because the company had already paid a lot of money for the present licence. 

Pravit Maleenont, former executive director of Bangkok Entertainment, a subsidiary of BEC World Plc and the concession holder of Channel 3, said some operators were able to cope with digital disruption and many could not.

All High definition channels have survived, but news channels have decreased, he said, adding that kids channels were not able to cope with digital disruption’s impact on audiences and advertising revenue.

“The government should adjust its role from supervising to that of supporting entrepreneurs and networks to drive the TV industry,” he said.

He added that the government should allocate 30 billion baht to support the growth of Thai TV industry instead of holding auction for digital TV licence.