Channel 3 operator confident over legal ground

Managing director Pravit Maleenont said MCOT had committed from the outset of the contract to maintain the concession fee and extend it automatically next year once the contract expired.

"We've done nothing that violates the contract, so we don't think MCOT will be able to increase the concession fee, as they've already committed [not to do so]. Any conditions we've had in the contract from the beginning cannot be changed," he said.

Pravit said the only contract condition giving MCOT the right to increase the concession fee was one concerning the inflation rate exceeding 5 per cent in a particular year. That clause entitles MCOT to hike the fee for that year alone.

Bangkok Entertainment has operated Channel 3 since 1990, and its contract with MCOT expires next year. However, the company has the right to extend the concession for another 10 years.

The company has already offered to pay combined concession revenue of Bt2 billion to MCOT during the 10-year extension and invest in the setting up of additional stations. A letter has been sent to MCOT notifying it of the planned extension of the contract.

"We've been informed by MCOT that it has received the notifying letter and is considering the concession deal through the establishment of a special committee. They'll make an appointment with us in the near future to negotiate the issue," said Pravit.

MCOT chairman Surapon Nitikraipot earlier said the concession fee for the extended period was too low compared with the Bt650 million a year earned from the state agency's other private concessionaire, pay-TV operator TrueVisions.

"The concession contract we have with MCOT is not a normal one. MCOT wants us to invest in TV stations and a broadcasting network covering the entire Kingdom. It benefits not only ourselves, but also MCOT, which is able to expand its business opportunities in line with network expansion," said Pravit.

He added that Bangkok Entertainment had already invested Bt1.2 billion in network expansion and that nearly 30 stations had been delivered to MCOT, in accordance with the concession.

Meanwhile, Bangkok Entertain-ment yesterday celebrated the fourth anniversary of its "Khrobkhrua Khao" (Family News) programme.

"We're now entering our fifth year, which has been recognised by us as 'The Year of Content'. Competition, especially in news programming, is more intense, and we need to be ready for it," said Pravit.

Surin Krittayaphongphun, vice president for marketing and sales, said Bangkok Entertainment expected to achieve nearly Bt2 billion in advertising sales this year from its news programmes, which will account for about 26 per cent of total ad revenue earned by Channel 3, up 21 per cent from last year.

The channel currently has 18 news shows, accounting for about half of its programming. It had 16 news programmes last year.

Surin described Channel 3 as a pioneer in the local television industry, having focused on news programmes as a strategic tool to boost revenue, especially in non-prime-time periods.