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Tue, October 31, 2006 : Last updated 20:10 pm (Thai local time)



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Home > Business > Govt must grasp the nettle of TV reform





ANALYSIS
Govt must grasp the nettle of TV reform

Mingkwan Sangsuwan's decision not to join the race to become MCOT Plc's president is no surprise, given the circumstances of his being made the company's original president five years ago.

However, his decision is another sign of the misfortune that has befallen both the TV channel operator and the general public. The vicious cycle will remain if problems in the TV industry are not solved now.

From the start, Mingkwan surprised many when he was appointed director-general of the Mass Communication Organisation of Thailand and then became president of MCOT after its partial privatisation. To outsiders, the veteran marketing man from Toyota Motors Thailand was not expected to know anything about the TV broadcasting and radio business.

Adding to the doubt was his closeness to then finance minister Somkid Jatusripitak, who was at the time deputy leader of Thai Rak Thai Party and had handpicked Mingkwan for the post.

Mingkwan did, however, surprise broadcasting circles with his long-sighted vision that was amazing from the outset. He wanted MCOT to be like BBC or CNN, international news channels that air their services around the globe, through collaboration with Asian news networks.

That dream has not yet come true, but for five years, he undoubtedly succeeded in turning around the near-dead broadcaster through a series of programming reshuffles.

The sharp drop in MCOT's share price following his resignation indicates how much investors adored his vision.

Sadly, after the coup, he was forced to resign along with other directors. Despite support from most retail shareholders, including the MCOT union, Mingkwan was unlikely to win the hearts of 10 new directors appointed last week by shareholders, among them the Finance Ministry. The ministry holds more than 60 per cent in the company.

Most of the new directors - Boonplook Chaiket, Charnchai Soontharamut, Prakit Prachonpachanuk, Sanguan Tiyapaiboonsin, Narong Chokwatana, Somphop Buntaravipaks, Chulayuth Hirunyavasit, Pongsak Payakvichien, Wittayatorn Tokeaw and Wilasinee Phiphitkul - are civil servants. Some, including Chulayuth, have enjoyed promotion in this military-supported government.

It seems uncertain whether the government would have dared to challenge outside forces in reappointing Mingkwan. On Sunday, the Campaign for Popular Democracy called on the Council for National Security to prevent Mingkwan from seeking another term, levelling the accusation that he had served the Thaksin regime while heading MCOT.

To be fair, which free-TV station has ever resisted government requests?

As we know, all six stations belong to the government. Three of them are operated by private companies - Channels 3, 7 and iTV. Meanwhile, Channel 5 is still under the Army's control, while Channel 11 is in the hands of the Public Relations Department.

Until its privatisation, Channel 9 - or Modernine TV - of MCOT was operated just like Channel 5. Indeed, right now, it is in a better position than Channel 5 since it has to be responsible to its shareholders.

Mingkwan himself had to suffer if a programme reshuffle or new radio policy could not promise higher returns and, as such, put pressure on MCOT share prices.

Obviously, throughout the past five years, shareholders did not particularly care who served whom as long as MCOT's financial performance satisfied them. Indeed, serving the government meant a large lot of advertisements from government agencies.

Indeed, if this government is not satisfied with the way MCOT was operated, it should instead find a way to prevent political intervention in the management of TV stations.

Forming the National Broadcasting Commission would be the right answer. Like the National Telecommunications Commission, the NBC would be responsible for setting the qualifications of would-be directors of any station - as well as the content of all TV channels.

Subjecting the industry to a single regulatory body would mean a single set of rules, creating a level playing field for all. And before setting the rules, the NBC would also need to look at the different concession fees different stations are subject to. Again, only a level playing field will mean that all parties come under the rules without argument.

Sadly, however, Prime Minister Surayud Chulanont said in his first days in office that he would not touch on the NBC issue.

But this government must formulate a clear answer about the future of Thailand's TV industry.

Supposing that Channels 3, 7, MCOT and iTV are to be operated as they are now, should Channels 5 and 11 remain under state control? If they are to produce better content to educate the public, how would that policy be financed - by government funding or advertising income?

To answer this question, the government must first finalise a decision about whether the stations should continue to serve as government tools in propagandising policies, but become more commercial so they can stay on their own two feet.

If they are to be more commercial like MCOT, then their management teams must incorporate more representatives from the private sector who know best how to run the stations. If there are clear rules, it should not be difficult to require them to set aside a certain portion of money and airtime for educational programmes.

Some extremists might propose complete privatisation, but this government is hand-tied to other issues so that it has no time left for a lengthy process which would certainly draw attacks from those who want to keep these national assets in the vault. (As a matter of fact, MCOT performed better after the privatisation. Along with the better performance came a number of programmes that were not money-making but much more educational than shows on other channels.)

No matter how hard this might be, forming the NBC and offering clear answers on the future of all TV channels are prerequisites if this government is serious in putting national assets to better public use. If the government ends its term without touching on these issues, the public would have gained nothing, including the dream of greater educational content on television.

 No previous government has ever touched on these issues, apparently due to the immense interests involved. But given strong public support, this administration should seize the opportunity to revamp the entire industry. Then, more effective marketers like Mingkwan would surface without having to fear political meddling.

And then too, the public could really be promised the better use of national assets. 

Achara Deboonme

The Nation

 








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