NBTC introduces new satellite auction rules after successive failures

The National Broadcasting and Telecommunications Commission (NBTC) has approved new criteria for allocating satellite orbital rights through an open direct award process. 

This method will select the winner based on a comparison of qualifications and proposals from interested parties, NBTC board member Sompop Purivigraipong said.

Additionally, the NBTC board has directed its office to query the Cabinet regarding the government’s policy on using these satellite orbital slots. 

On Wednesday, the NBTC board unanimously decided to cancel the auction for satellite orbital slots at 50.5-51 degrees and 142 degrees East due to lack of private sector bids.

The NBTC will also communicate with the International Telecommunication Union (ITU) to request an extension for using the satellite network in these orbits, as the selection process for licensees is ongoing.

Sompop said that the NBTC would not set specific criteria but would allow interested private entities to submit their conditions. The proposals will be compared, focusing on maintaining orbital rights and prioritising benefits for the economy, society, and national security.

“The NBTC will evaluate which operator’s proposal ensures the preservation of all three orbital positions and offers the best terms. The NBTC office has been tasked with drafting the allocation criteria using this method and presenting it to the board meeting within one month. This draft will then be subject to public consultation and subsequent implementation,” Sompop said.

During this period, the NBTC office is also assigned to study and analyse additional information regarding the alternative approach of the NBTC in managing the orbital rights directly. This study will consider legal, technical, and other constraints, including budgetary requirements, and will be presented to the NBTC meeting within two weeks for further deliberations.

The satellite orbital rights up for auction have limitations in frequency use and commercial benefits, said Sompop. The service areas of these orbits cover the Pacific Ocean, Europe, and Africa. The presence of multiple foreign satellites near these orbital positions reduces the available frequency for Thai operators.

Additionally, the C and Ku frequency bands are primarily suitable for broadcasting and television services. Using these bands for telecommunications, such as high-speed internet services, would require substantial investment and face competition from global low-Earth orbit satellite providers like SpaceX, OneWeb, and Amazon.

In the previous auction, the NBTC had slashed the minimum bid prices for the 50.5-51 degrees East orbital slot from 374 million baht to 41 million baht, and for the 142 degrees East orbital slot from 189 million baht to 23 million baht.

Last week, the NBTC confirmed the cancellation of the auction for these orbital slots after failing to attract any bidders. This follows an unsuccessful auction in January last year, where only three out of five orbital slots were sold.

According to regulations, if the NBTC cannot auction off these slots, it is required to return the usage rights to the ITU.