He said that as Thaicom 8 was launched on May 27 and the company had to report on the satellite’s progress within 90 days of the launch, the negotiations should be finished within 90 days, or by the end of this month.

Prajin was asked if the ministry had the authority to order Thaicom to pay an annual concession fee for the satellites.

In response, he said the negotiations should conducted carefully to avoid a legal backlash.

Last week Philip Tan, group chief executive officer of InTouch Holdings, the parent company of Thaicom, said Thaicom was open to entering into discussions on the matter in order to seek the best solution for all parties.

Payment until 2021

The ICT Ministry wants the annual concession fee paid until 2021, on top of the yearly licence fee for the two satellites Thaicom pays to the National Broadcasting and Telecommunications Commission. The ministry believes the Thaicom 7 and 8 satellites have to be brought under the current concession regime covering the satellite sector as the regime does not end until 2021.

The Thaicom 4, 5 and 6 satellites operate under an ICT Ministry concession that will expire in 2021, while Thaicom 7 and 8 operated under the NBTC licensing regime. Thaicom will face higher regulatory costs if it has to the pay concession fee in addition to the licence fee.

The annual licence fee is 5.25 per cent of Thaicom’s gross revenue, while the annual concession |fee is 20.5 per cent of its gross revenue.

In June Thaicom chief executive Paiboon Panuwattanawong said in a statement in reaction to this case that the government should consider the impact on Thaicom if it slaps additional conditions or more regulatory fees on two of the company’s satellites.