An industry source said customers of the Shin Corp subsidiary wanted to know the impact of the concession move, given that it does not expire for another 10 years.

"Its foreign customers are confused," he added.

Uncertainty arose on Friday when junta leader General Sonthi Boonyaratglin declared Thailand wanted its satellites back and defined the Shin-Satellite concession as a "national asset".

Information and Communi-cations Technology Minister Sit-thichai Pookaiyaudom picked up the baton and said yesterday one option to reclaim the satellites from "foreign ownership" was to buy all Shin Satellite shares.

The company is 41-per-cent owned by Shin Corp. In spite of complicated ownership structures that remain under investigation, many in this country argue Shin Corp is a Singapore-owned company.

Sitthichai said the ministry investigated several options to reclaim the satellites "several months ago".

He will set up another investigation into the status of the Thai company Kularb Kaew - one of three involved in the 2006 takeover of Shin Corp by Temasek Holdings.

If it is found to be a nominee used to skirt foreign-ownership restrictions, the government can simply terminate Shin Corp's state-awarded concessions, he said.

That includes those of Shin Satellite.

If Kularb Kaew is found not to have acted as a nominee for Temasek, then the government might be forced to purchase all Shin Satellite shares to repossess the concessions.

Depending on Cabinet approval, another state panel may have to be formed to recommend options.

It could cost taxpayers Bt10 billion to snap up Shin Satellite. But, if the company refuses to sell, there is nothing the state can do, he admitted.

"We cannot use force to take it back or it will scare away foreign investors," he added. He did not suggest where the money would come from.

A third proposal involves his ministry refusing to extend concessions for Shin-Corp companies on the grounds nationality of their beneficial ownership is in doubt. In addition, Shin Satellite and others of doubtful ownership will be banned from launching new satellites.

Shin Satellite plans to launch another within the coming few years.

This controversy is the latest of recent crises to beset Shin Satellite.

TOT is delaying plans to purchase an additional 17,000 iPSTAR broadband-satellite-signal-receiving terminals from the company. Each is worth US$700 (Bt27,100) - or a total of $11.9 million.

TOT markets iPSTAR broadband satellite services wholesale for Shin Satellite. It has already purchased 23,000 terminals.

A telecom analyst said Shin Satellite is majority owned by Thai interests, even if parent Shin Corp is defined as a foreign company.

Shin owns 41.3 per cent of Shin Satellite and other foreign shareholders own 6.49 per cent, bringing the total alien holding to 47.79 per cent - below the foreign-ownership limit of 49 per cent.

Shin Satellite's market capitalisation is $214 million. Shin Corp's holding is therefore valued at $88 million. Shin Satellite shares closed at Bt7.10 yesterday, up from Bt7.05.

The family of former prime minister Thaksin Shinawatra previously owned Shin Corp. It sold its combined 49 per cent stake to the group led by Singapore state investment arm Temasek on January 23, 2006.

The move prompted massive protests at the sale of national assets. Thaksin was ousted by a military coup on September 19 last year.

Telecom Reporters

The Nation