Calls to extend digital TV licences beyond 2029 to support industry

The Association of Digital Television Broadcasting (ADTEB) called on the National Broadcasting and Telecommunications Commission (NBTC) to extend existing digital TV licenses beyond their 2029 expiry to navigate the evolving challenges in the local digital TV market.

The association further urged the NBTC to reconsider its plan to auction the 3500-3800 megahertz spectrum for telecom services, highlighting that this frequency is vital for many satellite TV stations, with 60% of Thais accessing digital TV via satellite.

ADTEB president Suphap Kleekajai noted that members have long discussed the licence matter, ultimately deciding to push for the NBTC to forgo auctions for digital TV licences post-2029. Speaking at the One Decade of Digital TV event hosted by ADTEB and the NBTC, Suphap stressed the urgency, citing that five years is a short period given the time needed for policy changes to take effect.

“We need to see an extension of the terms for digital TV licenses, or even an alternative way of allocating new licenses, such as a beauty contest.”

Suphap emphasised that digital TV channels operate under national TV platforms and are regulated by the NBTC, unlike over-the-top platforms, which remain unregulated.

ADTEB management plans to formally meet with the NBTC board to discuss the license extension, said Suphap. The association aims to prompt the government to amend the NBTC Act, which currently mandates that spectra be allocated exclusively through auctions.

Suphap expressed concerns over the proposed auction of the 3500-3800MHz range, suggesting it would disrupt the digital TV sector. NBTC chairman Dr Sarana Boonbaichaiyapruck acknowledged the potential need to revise the auction plan, though he noted that the NBTC cannot directly issue orders to the government.

TV licence

Following discussions with ADTEB, the NBTC can present the association’s resolution to the government for further consideration, Dr Sarana said.

Suphap recounted the financial challenges digital TV stations faced since the NBTC auctioned 24 digital TV licences in 2013, which generated a total bid of 50 billion baht (US$1.5 billion). The market now comprises 15 digital TV channels, with several operators having ceased operations due to financial strains.

Unlike the NBTC’s auction approach, many countries have transitioned from analogue to digital TV systems without employing auctions, Suphap pointed out. A study by Chulalongkorn University suggested that a suitable winning price for the combined digital TV licenses would be 13 billion baht (US$382 million), significantly lower than the actual bid amount.

He highlighted the significant shifts in the digital TV landscape driven by changing viewer habits and the increasing popularity of streaming content via social platforms. Despite the NBTC’s implementation of the must-carry rule to bolster digital TV viewership through various networks, including satellite, advertising spending on digital TV has declined, reported Bangkok Post.

The must-carry rule mandates that free TV programs be broadcast on any platform without restrictions, offering some relief to the digital TV sector.