National Telecom (NT) is unlikely to set high-capacity specifications for its first satellite as it is intended to mainly serve state agency demand, which is estimated to increase by only 7% per year, according to a senior NT executive.
NT is the merged entity of TOT and CAT Telecom.
President Col Sanphachai Huvanandana said NT is set to hire an advisory company to determine specifications for the satellite, which is expected to be launched on the 126° East slot within three years.
He said the company must carefully consider the specifications so that they align with state demand for satellite bandwidth and provide universal telecom service access in remote areas.
The state enterprise does not plan to make a major investment in the satellite in the future, said Col Sanphachai.
Satellite bandwidth usage by state agencies is estimated at 850 megabits per second (Mbps), and is expected to increase 6-7% annually.
In the future, state agencies can use free satellite bandwidth capacity of around 800 Mbps, provided by two planned satellites of operator Thaicom.
On Jan 15, the National Broadcasting and Telecommunications Commission (NBTC) held the country's first auction for use of satellite orbit slots, offering five packages: 50.5° E and 51° E orbital slots with a starting price of 374 million baht; 78.5° E with a reserve price of 360 million baht; 119.5° E and 120° E with a reserve of 397 million baht; 126° E with a reserve of 8.6 million baht; and 142° E with a reserve of 189 million baht.
Space Tech Innovation, an affiliate of SET-listed Thaicom, won the second and the third packages, while NT won the fourth package.
According to the auction's conditions for the third package slot, the winner is required to allocate one transponder per broadcasting satellite or 400 Mbps of capacity for each broadband satellite to state agencies to use for free.
Thaicom plans to launch two satellites on that slot.
NT plans to announce the name of the advisory company by August and wants to finish drafting the details of its own satellite specifications by end of this year, Col Sanphachai said.
He said NT must negotiate with satellite operators in China and Japan under the coordination of the NBTC to prevent possible signal interference between satellites.
The talks are in line with procedures required by the International Telecommunication Union.
NT plans to discuss all related matters with NBTC management before investing in its satellite project.
Col Sanphachai said NT plans to create point-of-presence for its satellite under the 126° E footprint, including for some markets in Indonesia, the Philippines and Malaysia.
Both the National Space Policy Commission and the National Digital Economy and Society Commission passed a resolution to assign NT to participate in the NBTC's orbital slot auction in January as part of the national satellite development policy.
NT operates a satellite business through the Thaicom 4 and Thaicom 6 satellites.
Thaicom's 30-year concession with a build-transfer-operate condition expired, resulting in the transfer of its two satellites and related assets to the Digital Economy and Society Ministry to handle operations and services until the satellites' engineering lifespan ends.
NBTC commissioner AM Thanapant Raicharoen said both NT and Space Tech Innovation have paid the first instalment for the slots they won at the auction.
The NBTC board plans to consider and approve awarding licences to the two companies in the near future, he said.