Tribunal arbitrators have unanimously ruled that the Thaicom 7 and 8 satellites are not part of an agreement with the Digital Economy and Society (DES) Ministry, thus freeing the satellite operator Thaicom from the ministry's obligations.
Thaicom informed the Stock Exchange of Thailand about the ruling late on Thursday.
Salil Charuchinda, senior vice-president for legal affairs at Thaicom, said the ruling meant the company is not obligated to comply with various DES Ministry requirements regarding the two satellites.
Thaicom has always insisted the two satellites fall under the scope of a licence scheme obtained from the National Broadcasting and Telecommunications Commission (NBTC).
On Oct 5, 2017, Thaicom received a letter from the DES Ministry stating the two satellites fall under the operating agreement on domestic communication satellites dated Sept 11, 1991, between its parent Intouch Holdings and the ministry.
The letter asked Thaicom to fully comply with the terms of the agreement, such as transfer of ownership and delivery of assets, procurement of backup satellites, payment of overdue revenue sharing, and property insurance.
As Thaicom considered the two satellites to be under the NBTC's licence scheme, unlike the Thaicom 4 and 6 satellites that are governed under the DES Ministry's concession under a build-transfer-operate agreement, the company submitted the dispute to the Thai Arbitration Institute on Oct 25, 2017.
Thaicom 7 was launched into orbit in 2012 and began operating in 2014. Thaicom 8 was launched into orbit in May 2016. The NBTC requires a 5.75% licence fee payment from Thaicom for the operation of the two satellites.
There is another dispute still in arbitration between Thaicom and the ministry related to the Thaicom 5 satellite, which was taken out of orbit in February 2020 before the concession expired. The ministry demanded Thaicom build and deliver a replacement satellite for Thaicom 5, or pay compensation of around 7 billion baht if it cannot do so.
Thaicom argues the ministry was informed in advance about the satellite's lifespan, which was due to end in 2018, before it was approved for launch. The company said it consulted with the ministry and NBTC before deorbiting the satellite.
