Seem complicated!!! THCOM is demanded compensation to DES, embrace for an arbitration proceeding

Seem complicated!!! THCOM is demanded compensation to DES, embrace for an arbitration proceeding

THCOM reported receiving a notice to enter an arbitration proceeding from the Digital Economic and Society Ministry (DES) after THCOM breach the agreement and gave rise to the dispute of satellite Thaicom 5, which is deorbited prior to the agreement. There is also a request in case THCOM could not build and deliver the replacement satellite.  In this regard, Thai Arbitration Center (THAC) would like to summarize and sort out official information for your understanding as follows;

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Timeline of the satellite Thaicom 5

• On 18 December 2019 and 16 January 2020, Thaicom reported to the Stock Exchange of the technical failure of satellite Thaicom 5
• There were 4 attempts to fix it. However, it resulted in failure
• THCOM has consulted with the expertise which advised to deorbited satellite Thaicom 5
• On 7 February 2020, THCOM send a letter to the Digital Ministry to propose a deorbited plan of Thaicom 5
• THCOM has informed its customers about migrating from Thaicom 5, began from 15 February 2020
• On 23 February 2020, THCOM attempted to fix the technical failure, but the system could not be brought back to function
• As a consequence, THCOM said Thaicom 5 must be deorbited on 26 February 2020 (deorbited before the concession expiry date, which will be on 10 September 2021)
• THCOM reported to the Stock Exchange that the Company received a notice to enter a dispute resolution by arbitration and a statement of claim from the Digital Ministry
• The Digital Ministry has requested that THCOM build and deliver the replacement satellite for Thaicom 5
• If the replacement is not built, THCOM is requested to compensate, with interest, calculated from 30 October 2020
• Furthermore, the Company will have to pay a fine, with interest, from 1 November 2020 until the replacement satellite is delivered or the compensation is paid in full.
• This case has just started the arbitration proceeding
• And THCOM will not comply with the requests made by the Digital Ministry until an award is rendered

For further information, please contact THAC!