NEWTOWN, Conn. - Thaicom is one of the main regional satellite operators in Asia. Asia is a growing market for satellite services, putting Thaicom in a strong position to continue growing in the future. Many countries in Asia are experiencing increasing demand for all types of communications services.
In fact, demand for Thaicom services is so strong that the company says it could see a shortage of capacity over the next few years. The shortage was exacerbated by the Thai government's six-month delay in approving Thaicom 8, which did not launch until May 2016. Both Thaicom 5 and 6 are at full capacity and Thaicom-7 was fully booked by November 2015.
It appears that Thaicom could continue to have similar problems going forward. The company applied for a license to operate a new satellite, Thaicom-9, in October 2015. However, the Thai government withdrew a filing with the ITU for the planned orbital slot while it determines its future satellite strategy. While a launch is eventually expected to take place, the filing withdrawal could again delay service entry.
Thaicom is experiencing some threats to future growth. The Asian satellite market remains fragmented. There are many competitors in Asia, including Asia Broadcast Satellite, China Satellite Communications Company, AsiaSat, and others. In addition, many global satellite operators, such as SES and Intelsat, also compete in Asia.
Asian satellite operators also deal with strict market regulations. India, for example, heavily taxes outside satellite operators in favor of satellites operated by its own space agency. China also severely restricts commercial satellite operators. The different regulations in each country are another reason for the market fragmentation mentioned above.
Thaicom could face restrictions on revenue growth in the near future. With three satellites at full capacity, the company will have limited room for expansion. However, the fact that demand continues to grow bodes well for the company. In order to meet demand, Thaicom will continue to purchase new satellites.
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