The policies included a change in terms of the concession contract to allow Thaicom to launch the iPSTAR broadband satellite [or Thaicom 4] as its main satellite, instead of a backup satellite for Thaicom 3 as promised in its contract. In addition, the broadband satellite does not have a C band transponder to allow free use by government agencies.
"We can present our testimony and the background of what we have done if the government talks with us directly and tells us what it wants us to do following the court verdict," said Mr Arak.
He said the condition change on iPSTAR also allowed the state to gain more revenue from the satellite.
"Say a land owner initially wants a contractor to build a one-storey house on the land. Then one day, the owner tells the contractor that because land prices have surged he should add another storey to increase space and rental revenue," said Mr Arak.
"Then later, the land owner says the house construction [in accordance with the terms of the contract] cannot feature two storeys. It wants the contractor to demolish the second storey or demolish the whole house.
"So who is the wrongdoer? And what can the contractor do now? We can dissolve the contract but the government must come talk with us in detail."
The Information and Communications Technology Ministry together with state agencies TOT Plc and CAT Telecom have set up committees to examine the concession amendments of Thaicom and the Shin mobile flagship AIS and seek possible compensation.
Mr Arak said Thaicom was operating as usual, though it had received many inquiries from its overseas customers over the potential impact of the verdict.
"Our satellite business is not in a precarious position. Our customers have nothing to worry about," he said, assuming the government does not order the company to withdraw its satellite from orbit. "If the government revokes its contract with Thaicom, it could seek other operators to replace us without terminating existing customers' transponder rental contracts."
Mr Arak added that Temasek of Singapore, the major shareholder of Shin, has never been involved in the company's management and operations, allowing executives to proceed with business as usual.
He also urged the ICT Ministry to consider the company's proposal to extend the length of its satellite concession and reduce the concession fee.
Thaicom shares (THCOM) on the Stock Exchange of Thailand have fallen 23% since the court ruling on Feb 26, closing yesterday at 4.40 baht.
http://www.bangkokpost.com/business/telecom/33989/thaicom-ready-to-defend-itself
