Liberalising the Thai broadcast industry
Unrealised dreams of the 1997 constitution
By Jon Fernquest[Introduction|Vocabulary|Article]
[Reading Questions|Answers]
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The liberalisation of Thailand's broadcast industry is the subject of today's editorial in the Bangkok Post.
Essential background information is provided for understanding this important and tightly controlled industry.
To understand, for instance, the recent tearful closing of ITV, one has to understand the larger broadcast industry that ITV broke away from and challenged.
Concession fees and content requirements that mostly news and much less entertainment be shown were considered too onerous for ITV to continue long in operation, and were finally reversed by an arbitration panel.
The arbitration panel's reprieve was, in turn, reversed and ITV was ordered to pay massive arrears in fees. ITV then went out of business.
In the end, the original broadcast media players remained on the field, government owned and operated by privileged families with long-term lucrative concessions, a closed system with locked in monopoly rents.
The 1997 constitution promised to change that by setting up the National Broadcasting Commission (NBC) to reallocate broadcasting frequencies and bandwidth in the public interest, but in the face of powerful vested interests this committee was never fully appointed and ratified, so the promised redistribution never took place.
Today, some maverick broadcast media such as community radio and cable TV stations, as well as Sonthi Limthongkul's ASTV channel or the pro-TRT PTV channel thrive even in the remote provinces despite a murky legal status.
Will the deadlock ever be broken and truly free and legal broadcast media ever be allowed to flourish, only time will tell.
Reading Questions
Here are some questions to guide your reading (See answers at end):1. How long have broadcast media in Thailand been controlled by the state?
2. Who has been traditionally awarded with broadcasting rights in Thailand? Why?
3. What new technologies have allowed new companies outside of the select group that has long received broadcasting concessions break into the industry?
4. How did provisions in the 1997 constitution aim to break the state monopoly over the broadcast media? To what extent was this aimed achieved?
5. How do community radio stations and cable TV channels operate? Legally or illegally?
6. Which media broadcast operators will the new draft broadcasting law by the Surayud administration help? What about the others?
7. What different categories of broadcast licenses will be used for regulatory purposes?
8. How many broadcasting organisations are government owned?
(Count those listed in the article)
9. Are the government owned broadcast organisations run by the government?
Where does the money they generate go?
10. What will be the greatest obstacle to overcome in freeing up braodcast media to serve the public interest?
Bangkok Post Article July 12, 2007
New hope for broadcast media
Ever since the introduction of the Radio and Television Act in 1955, all broadcast media has been entirely owned by the state, although in reality most television and radio stations have been run by private entrepreneurs who were granted concessions on a privileged patronage relationship basis.In recent years, however, some new players managed to break the monopoly and get into the act, thanks to the advent of new technology such as satellite-based television and cable TV. The drafters of the 1997 Constitution which was revoked by the coup-makers last September wanted to break this monopoly of broadcast media by the state. Their intention was apparent in Article 40 of the charter, which sought to set up a panel, called the National Broadcasting Commission (NBC), whose main task would be to reallocate all the radio and TV frequencies for private and public access. Sadly though, this noble intention has never been realised. Ten years later, the NBC is still very much a distant dream. And the frequencies remain intact in the hands of the state and its close business friends. The new draft broadcast law endorsed by the Surayud government on Tuesday represents a breeze of fresh air for the broadcast media, especially for some 3,000 community radio stations and about 400 cable TV stations which have been operating illegally since their inception. Most took advantage of the power vacuum made available in the absence of the NBC on the one hand, and the lack of clear policy direction from successive governments on how to deal with the stations, on the other.
Once the draft broadcast law is passed, these illegal community radio, cable TV and satellite TV stations can apply for licences with an interim regulating body pending the formation of the NBC. The licences will be good for no more than a year. Although the operating period is short, it should at least provide temporary relief for existing operators.
As for new broadcast media operators, they will have to wait until the NBC is formed. For the time being, no one seems to know when this will be. And if past record about the fierce competition by several stake-holders to squeeze themselves onto the said commission is any indicator, the prospect does not look promising.
But as far as the draft law is concerned, it should be acceptable. The law seeks to separate operating licences of frequency-based broadcast media into three categories: one licence for education, arts and culture, religious affairs, sports, health and security affairs; another licence for community service and a third licence for profit-oriented business. Of the three categories of licences, there is one licence for nationwide broadcast and another for regional broadcast. A mechanism is also to be introduced to prevent those who are not media professionals from applying for licences.
The law also advocates the setting up of a regulating panel to oversee the conduct of broadcasters, to see whether they comply with the ethical code. The panel will comprise members of the broadcast media, consumer groups, experts in the fields of law, mass communications and cultural affairs. There are also penalties ranging from probation, fine, suspension of operations and revocation of licences for those found guilty of violating the code of ethics.
While the new law is welcome, it represents just half of what needs to be done if broadcast media is to be opened up. The state still holds the monopoly for broadcast frequencies. Altogether the state agencies - the Public Relations Department, the three armed forces, the police, Mass Communications Organisation of Thailand and others - own more than 500 radio stations and eight TV stations. The PRD also owns about 70 cable TV stations. Most of these radio and TV stations are leased out to private entrepreneurs, most of them major players linked to the music and entertainment industry. Which explains why there is little air time for educational, cultural or health programmes.
It is also no secret that these broadcast stations represent a treasure trove for the state agencies, which are reluctant to let go of the frequencies. But if these facilities are to really serve the public interest, these frequencies must be reallocated. We have yet to see a government courageous enough to right this wrong, even if that means stepping on important toes.
Vocabulary (in discussion above)
liberalisation - when laws or attitudes become less strict and people are allowed more freedom of action (See glossary)
background information - the facts and history that you need to understand something
ITV channel - the only television station not owned by the government, started in 1995 when the company was granted a 30-year concession to operate a UHF television channel, lost money due to the high concession fees it had to pay to the government, bought by Thaksin and Shin Corp, journalists critical of Thaksin were fired but later won back pay in court, content mix shifted from mandated 50%-50% entertainment-news to more entertainment, an arbitration panel granted ITV a reduction in concession fees and allowed the increased entertainment, but a court over-ruled this and after a lengthy dispute over unpaid concession fees, iTV was taken over by the government's Public Relations Department in 2007 and its name was changed to Thai Independent Television (TITV) (See Wikipedia)
ASTV channel - a satellite television station run by anti-Thai Rak Thai activist and media tycoon Sondhi Limthongkul (See Wikipedia on Sondhi Limthongkul and Thai Media - Satellite and Cable Broadcasting)
PTV channel- People's Television, a Thai satellite television station established by former executives of Thaksin's Thai Rak Thai party (See Wikipedia)
community radio stations - "radio service that caters to the interests of a certain area, broadcasting material that is popular to a local audience but is overlooked by more powerful broadcast groups" (See Wikipedia)
Radio and Television Act in 1955 - the basic law that set up the Thai broadcasting industry
mass media - (See Wikipedia on Mass Media)
news media - mass media that distributes the news to the public, including print media (newspapers, magazines); broadcast media (radio stations, television stations, television networks), and increasingly Internet-based media (World Wide Web pages, weblogs; See Wikipedia on news media)
broadcast media, broadcast industry - television stations, radio stations, and cable television networks, one type of news media along with print media and internet media (See Wikipedia on broadcasting)
concessions - a special right or privilege to run a certain kind of business for a certain period of time, usually given by the government (See glossary)
granted concessions - given concessions
onerous - difficult and unpleasant to do
arrears - amounts of money owed from the past
lucrative - profitable
1997 Constitution - the "peoples' constitution" that grew out of the work of several Thai intellectuals after the 1992 coup and political conflicts, and became effective shortly after the begginning of the 1997 financial crisis (See Wikipedia on the 1997 Constitution and read the actual 1997 constitution)
Article 40 of the charter - the section of the 1997 constitution that declares that radio and television frequencies belong to the people and authorises an "independent regulatory body" to distribute the frequencies:
"Section 40. Transmission frequencies for radio or television broadcasting and radio telecommunication are national communication resources for public interest.(From the 1997 Thai Constitution at Wikisource)There shall be an independent regulatory body having the duty to distribute the frequencies under paragraph one and supervise radio or television broadcasting and telecommunication businesses as provided by law.
In carrying out the act under paragraph two, regard shall be had to utmost public benefit at national and local levels in education, culture, State security, and other public interests including fair and free competition."
National Broadcasting Commission (NBC) - the government agency that was to reallocate radio and TV frequencies in the public interest under the 1997 constitution, that never began operation due to vested interests (See Wikipedia on Media of Thailand)
bandwidth - capacity to carry information or data (on a frequency, internet connection, or cable)
maverick - independent, unconventional, non-conformist, iconoclastic, cowboy
murky - details not clear and difficult to understand (in this fog of uncertainty there may also be something morally wrong or dishonest)
deadlock - compromises and an agreement can not be reached, progress can't be made
deadlock broken - finally an agreement and progress on an issue
flourish - growing and developing quickly and strongly
privileged - having an special opportunity that most people do not have
patronage - supporting and giving money to
* patronage relationship
granted concessions on a privileged patronage relationship basis -
granted concessions on a privileged patronage relationship basis -
granted on a privileged basis - given only to a limited special group
granted concessions on a privileged patronage relationship basis -
revoked - taken away, ended
break this monopoly - end the monopoly (and the power of those who hold the monopoly)
was never realised - never happened
a breeze of fresh air - a nice change
a breeze of fresh air for the broadcast media - a welcome change in the broadcast industry
since their inception - since their beginning
a power vacuum - there is no one with control or power over the situation
lack of clear policy direction - policy changes a lot, doesn't seem to be a plan, policy flip flop
interim - temporary
regulating body - a government agency or committee that issues regulations for a set of activities (for example, regulations on food safety, public buses, flood control, public water, sewage, or broadcasting)
pending - waiting for approval
interim regulating body pending -
stake-holders - people with a stake or an interest in the outcome of a situation (they will gain or lose depending on what happens)
frequency-based broadcast media - (other kinds?, cable? satellite?)
x comprises y - x has y as a part or parts
revocation of licences - taking licenses away
a treasure trove - a lot of valuable things (just waiting to be found)
Answer Key:
1. How long have broadcast media in Thailand been controlled by the state?
Since the passage of the Radio and Television Act of 1955.
2. Who has been traditionally awarded with broadcasting rights in Thailand? Why?
Private entrepreneurs with a "privileged patronage relationship" with the state, i.e. rent-seekers, people, families, companies, who received economic rents from lucrative friendships.
3. What new technologies have allowed new companies outside of the select group that has long received broadcasting concessions break into the industry?
a. Satellite TV
b. Cable TV
4. How did provisions in the 1997 constitution aim to break the state monopoly over the broadcast media? To what extent was this aimed achieved?
The 1997 constitution authorised the National Broadcasting Commission (NBC) to "reallocate all the radio and TV frequencies for private and public access." Unsurprisingly, given the vested interests involved, the aim of setting up NBC to reallocate broadcast frequencies was never achieved.
5. How do community radio stations and cable TV channels operate? Legally or illegally?
They operate illegally. They have taken advantage of:
a. The power vacuum made available in the absence of the NBC
b. The lack of clear policy direction from successive governments on how to deal with the stations.
6. Which media broadcast operators will the new draft broadcasting law by the Surayud administration help? What about the others?
The draft broadcasting law will help the community radio stations, cable TV, and satellite TV channels that have long operated illegally. It would allow them to apply for a legal operating license, but only for one year.
[Note: Some might argue that being required to apply for a very short term license is even worse than operating illegally with laws that exist but aren't enforced. If the law is not enforced, as is the case with nominee shareholding, prostitution, running a red light, or many other laws on the books but rarely enforced, then the law effectively does not exist.]
As for TV channels and other established media operators, they would "have to wait for the NBC to be formed," and it is very likely that entrenched vested interests will prevent this once again from happening.
7. What different categories of broadcast licenses will be used for regulatory purposes?
a. Education, arts and culture, religious affairs, sports, health and security affairs.
b. Community service
c. Profit-oriented business
d. Nationwide broadcast and e. regional broadcast.
("But as far as the draft law is concerned, it should be acceptable. The law seeks to separate operating licences of frequency-based broadcast media into three categories: one licence for education, arts and culture, religious affairs, sports, health and security affairs; another licence for community service and a third licence for profit-oriented business. Of the three categories of licences, there is one licence for nationwide broadcast and another for regional broadcast. A mechanism is also to be introduced to prevent those who are not media professionals from applying for licences.")
8. How many broadcasting organisations are government owned?
(Count those listed in the article)
I count 500 + 8 + 70 = 578.
9. Are the government owned broadcast organisations run by the government?
Where does the money they generate go?
No, government owned broadcast organisations are run by private concession holders. The money generated goes to state agencies.
10. What will be the greatest obstacle to overcome in freeing up braodcast media to serve the public interest?
Getting state agencies to let go of the lucrative frequencies that they own.
("It is also no secret that these broadcast stations represent a treasure trove for the state agencies, which are reluctant to let go of the frequencies. But if these facilities are to really serve the public interest, these frequencies must be reallocated. We have yet to see a government courageous enough to right this wrong, even if that means stepping on important toes.")
