The Information and Communications Technology (ICT) Ministry is to investigate Shin Satellite to determine whether the Shin Corp subsidiary has breached the conditions of its concession contract. However, it says the cases to be probed are not so serious that they might lead to revocation of ShinSat's concession.

ICT Minister Sitthichai Pookaiyaudom said yesterday that the investigation should be finished within 60 days. He was speaking after a meeting with ShinSat's president Nongluck Phinainitisart.

Sitthichai said an investigative committee will concentrate on three issues, the first of which is ShinSat's lack of a backup for the broadband satellite iPSTAR.

ShinSat owns three broadcasting satellites - Thaicom 1, 2 and 5 - and the broadband satellite Thaicom 4, better known as iPSTAR. Last year it disconnected Thaicom 3 due to serious glitches.

Nongluck said the concession stated only that the company has to provide backup satellite channels for customers in case its satellites fail to provide service. ShinSat complied with the contract by providing a backup satellite for customers affected by the failure of Thaicom 3.

According to ShinSat's concession, the backup satellite for Thaicom 1 is Thaicom 2 and that for Thaicom 3 is Thaicom 4. However, it built Thaicom 5 to replace Thaicom 3.

Another issue is ShinSat's alleged neglect in failing to bring into Thailand the insurance payout from the failure of Thaicom 3 - worth about Bt500 million - before using it to pay for the construction of Thaicom 5.

Nongluck said there was no condition in the concession contract covering the issue.

The final matter concerns an amendment to ShinSat's concession made in the past by the ICT Ministry which allows Shin Corp to reduce its stake in the satellite firm to a minimum of 40 per cent from 51 per cent.

Nongluck said she did not want to comment on the matter now.

ShinSat's original concession required Shin Corp to maintain a stake in ShinSat of at least 51 per cent for the whole concession period of 30 years.

In 2005, ShinSat raised capital through a share offering, which diluted Shin's stake to 41.56 per cent. Currently, Shin owns 41.34 per cent of ShinSat.

Sitthichai does not think the cases are so serious that they will lead to the revocation of ShinSat's concession.

Telecom Reporters

The Nation