Broadcast Equipment
Thailand
Overview
2004 2005 2006 (estimated)
Total Market Size 1100 1300 1000
Total Exports 4928.5 4944.4 5278
Total Imports 5728 6116.3 5338
Imports from the U.S. 292.2 386.6 309.2
Remark: All figures are in US million The above statistics are unofficial estimated
Source: The Customs Department of Thailand
The television and radiobroadcasting sector in Thailand falls under the control of three major government bodies, the Mass Communications Organization of Thailand (MCOT), the Public Relations Department of Thailand (PRD), and the Royal Thai Army Radio and Television (RTA). These three largest players own more than two-thirds of the airwaves nationwide. Moreover, the government actively supports development of communication technologies, investing in two north-south fiber-optic cable networks, and international submarine links with several countries in the region, and domestic satellite communications.
In accordance with the 1997 Constitution of Thailand and provisions, Section 40 of the Constitution states that transmission frequencies for radio or television broadcasting are national communication resources for the public interest. Therefore, bureaucratic and media reform is now under way in Thailand and an independent regulator, the National Broadcasting Commission (NBC) will be formed. Once, the NBC is established, it will take over the regulatory functions of PRD, MCOT, and other government agencies, including the regulation and frequency management of the Post and Telegraph Department under the Radio
Communication Act B.E. 2498.
NBC roles and responsibilities:
Responsibility for monitoring terrestrial stations
Issuing licenses for new commercial-free broadcasting to air and satellite stations
Permits to operate radio and television broadcasting business (both cable/noncable)
Regulating and controlling according to technical license conditions
The media and broadcasting industry is growing along in tandem with the growing
consumer market in Thailand. There are five major media formats that are used for
advertising campaigns in Thailand
o T.V. (60%)
o Radio (10%)
o Magazines (7%)
o Outdoor advertising (6%)
o Movie Theatres (2%)
Television and radio are the key sub-sectors covered in the broadcasting industry. According to AC Neilsen Media Research Company, total media spending in Thailand was $ 2.2 billion in 2005. Spending on TV and radio represented more than 60% of the market. In 2006 the industry is projected to either remain steady, or to post slight growth due to factors such as increasing oil prices and an uncertain political situation
The largest players in the Thai Television industry are MCOT, a former state enterprise of which the government still owns a 77 percent stake, and the Royal Thai Army, which retains ownership of numerous broadcast frequencies. The only commercial station not subject to the control of MCOT or the army is ITV which belongs to Shin Corporation, a communication conglomerate controlled by Temasek Holding of Singapore.
The government actively supports development of communication technologies, investing in two north-south fiber-optic cable networks, and international submarine links with several countries in the region, and domestic satellite communications.
The inevitable next move in digital networking is full-resolution television transmission via internet broadband technology. This is certainly practical for minority audiences living in Bangkok and the greater Bangkok areas. Special interest programs such as competitive sports programs or reruns of recent broadcasts are the main content for IP T.V.
Apart from free television operators, Thailand has several CATV, MMDS and Satellite television providers. The most significant player in the market is the True Vision Public Company Limited (TrueVision)(formerly United Broadcasting Company Limited (UBC)) controlled by the Charoen Pokphand (CP) Group, a massive Thai business conglomerate. UBC has awarded concessions from MCOT to operate CATV services in greater Bangkok and encrypted digital satellite TV (DSTV) services across the country. Outside Bangkok, there are an estimated 350+ independent CATV providers offering service in the provinces without the necessary license. It is estimated that the provincial cable operators reach a total of two million household and businesses.
Radio
Like television, radio broadcasting should be regulated and monitored by the National Broadcasting Commission (NBC). However, the committee is under a selection process with an unknown timeframe. This could cause radio frequencies to remain in the government bodies, including the military, state universities, the Public Relations Department (PRD) and the MCOT. These agencies operate several stations directly, while the remaining are leased out to private operators. Thailand has 589 radio stations nationwide, 238 of them are on AM, while 351 are on FM. The biggest operators are the Public Relations Department with 147 radio stations, followed by the Royal Thai Army with 127 stations and the Mass Communication Organization of Thailand with 62 stations. AM radio tends to appeal to popular tastes, especially with rural listeners, while FM radio offers more popular music as well as jazz and classical music, English-language newscasts, and original soundtracks of certain foreign films are shown on local television. In addition, community radio stations operating with lower-power transmitters having proliferated in the last few years, offering listeners an alternative to the government-controlled station.
Best Products/Services
U.S. best selling products in Thailand broadcast industry include:
-Transmission
Radio
Television
-Console (Radio)
-Studio Equipment
Radio
Television
-Software systems such as automation and advertising solutions
-Microwave communications equipment
Opportunities
Presently, most broadcast communication equipment is imported. Products from the United States, Germany, and Japan are more popular than products from other parts of the world. This is based on the customer perceptions about the latest technology and quality of broadcast communication devices.
Most Chinese products concentrated on non-linear equipment and software automation that requires low production costs and much less research and development. Importantly, Chinese products, offering the lower price, play a significant role in the purchasing decision.
For broadcast communication equipment, competitors are Itelco (Italy), Rohde&Schwarz (German), Sony (Japan), and NEC (Japan), Dayang (China), and Sobey (China).
U.S. best selling products in Thailand include:
Transmission-Radio &Television Console (Radio) Studio Equipment-Radio &Television Software systems such as automation and advertising solutions Microwave communication equipment The major U.S. players in the Thai broadcast market are below: Harris Corporation through its distributor, Loxley Plc. Co., Ltd.
Broadcast Electronics through its distributor, Broadcast and Studio Co., Ltd.
Resources
U.S. Commercial Service # 302, 3rd Floor, Diethelm Tower A, Wireless Road, Pathumwan, BKK 10330 Tel: 662-205-5090 Fax: 662-255-2915 Contact: Oraphan Boonyalug, Commercial Specialist E-mail: oboonyal@ mail.doc.gov
The Public Relations Department 9 Soi Aree Samphan Rama IV Rd. Phyathai Bangkok, Thailand 10400 Tel: 662-618-2341 Fax: 662-618-2342 Contact: Phachern Khamphoe, Deputy Director General E-mail: phachern@ prd.go.th
MCOT Public Company Limited 63/1 Rama IX rd., Huay Kwang Bangkok, 10310, Thailand Tel: 662-201-6000 Fax: 662-246-1961 URL: www.ict.mcot.net
Contact: Pongsak Payakvichien, Acting President