Thaicom Revenue Down 10% Amid Increasing Competition
Thaicom has been the leading satellite operator in the Asia-Pacific region since 2005 when it launched its trademark satellite IPStar. However, revenues have been on the decline for the past few years, with 2018 incurring a reduction by almost 10%. The increasing competition from various other communication satellites is being deemed as the major reason for this decline.
Thaicom is known to have 5 operational satellites in the Asia-Pacific region which generated 6 billion baht revenue in 2018. Though this is a considerable amount, the reduction is 10.2% from the previous year which is a worrying factor. However, the company has averted some of the loss and come back to some sort of profitability by selling 42% of its stake to a local internet provider company called CS Loxinfo Public Company Ltd.
New satellites are being launched frequently by a number of new companies which has increased the competition considerably, said Mr. Anant Kaewruamvongs, the CEO of Thaicom. The Bangabandhu Satellite launched from Bangladesh, Pacific, a Singapore-based condosat and a satellite by mu Space is the satellites being referred here principally. Thaicom’s major satellite, IPStar, saw a major decline in revenue of 16.9% which is mainly reflected in their losses. Mr. Anant believes that they have to update according to the changing times and invest in newer satellites with modern technologies and also look for partnerships with international companies in order to reduce the burden of revenue generation.
A lot of revenue also is siphoned to the “concession scheme” in Thailand which mandates that satellite companies give a part of their revenue to the Information and Communication Technology Ministry of the country. Moreover, newer business steps like focusing on digital marketing for the satellites are going to be crucial in order to regain back the top perch that Thaicom had occupied for a really long time.