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Published on January 17, 2008

A company source said ShinSat would be more cautious in picking up new foreign customers after this bad experience.

ShinSat had carried out a transmission test for the firm on its newest satellite from January 1-10 before pulling the signal on January 11.

ShinSat spokeswoman Piyanuch Sujpluem said the test was terminated once the telecom operator learned from the foreign media about the group's background.

ShinSat issued a press release to confirm it had severed its business ties with Al-Manar and notified Al-Manar TV that it would not be airing its programmes.

In 2006, the US Treasury Depart-ment named Al-Manar, a satellite TV operation owned or controlled by the Iran-funded Hizbollah network, as a specially designated global terrorist entity.

The ShinSat source claimed Al-Manar was the only Lebanese customer of Thaicom 5, whose footprint spans Asia, Africa, Europe and Australia.

According to the company's procedures, once it is approached by an interested party, it tests the link-up with the customer, the source added.

A telecom analyst said the incident was unlikely to hit ShinSat's business hard, as it was a rare and special case.

Prime Minister Surayud Chulanont has already ordered the Information and Communications Technology Ministry, which granted ShinSat its satellite concessions, to investigate the affair.

ICT permanent secretary Sue Lo-Uthai said ShinSat had already explained that one foreign firm contacted the company's sales agents about using Thaicom's relay service and that the salesmen had no idea that the firm had connections with terrorists.

Sue told ShinSat it must be much more selective in taking on foreign customers from now on. He would conclude the ShinSat probe and forward his report to the ICT minister and the premier.

ShinSat operates the Thaicom 1, 2, and 5 broadcasting satellites and the iPSTAR broadband satellite.

ShinSat is 41.32 per cent owned by Shin Corp, which was founded by ousted premier Thaksin Shinawatra. Currently, Cedar Holdings and Aspen Holdings, subsidiaries of Singapore state investment arm Temasek Holdings, hold 54.51 per cent and 41.75 per cent respectively of Shin Corp.

ShinSat launched Thaicom 5 into orbit in 2006, focusing on broadcasting, especially direct-to-home television and high-definition TV and telecommunications.

ShinSat's shares closed yesterday at Bt9.25, up from Bt8.95 on Tuesday.

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