Page 165 - MONO_AR_2016_EN

14. Cost of spectrum license
Mono Broadcast Co., Ltd. (“Broadcast”) won a digital TV spectrum license auction for variety Standard Definition (SD) ("the license") held by the National Broadcasting and Telecommunications Commission (“NBTC”). Broadcast was required to make payment for the bid price of Baht 2,250 million (exclusive of VAT) under the following payment conditions:
1) Payment for the minimum bid price amounting to Baht 380 million, divided into 4 installments and has to be made within 3 years from the date of obtaining the license as specified by NBTC.
2) For the exceeding amount of the minimum bid price amounting to Baht 1,870 million, the payment is divided into 6 installments and has to be made within 5 years from the date of obtaining the license as specified by NBTC.
The license is valid for 15 years from the date of the license (25 April 2014). In the current year, Broadcast paid Baht 412 million for the cost of spectrum license (2015: Baht 301 million). Broadcast guarantee the rest of cost of the spectrum license payable to NBTC by bank guarantee.
Subsequently, on 20 December 2016, there was an announcement from Government Gazette to inform the licensee who has intention to extend the period of payment for the rest amount of the license to inform to NBTC. Broadcast has already implemented according to a letter dated 2 February 2017.
As at 31 December 2016, Broadcast had the cost spectrum license payable remaining bid price (exclusive of VAT) of Baht 1,160 million (2015: Baht 1,572 million). Broadcast was required to make payment for the rest amount of the license after extend the period of payment under the following payment conditions:
1) Payment for the minimum bid price amounting to Baht 38 million, divided into 2 installments and has to be made within 4 years from the date of obtaining the license as specified by NBTC.
2) For the exceeding amount of the minimum bid price amounting to Baht 1,122 million, the payment is divided into 6 installments and has to be made within 8 years from the date of obtaining the license as specified by NBTC.
During the year, the amortisation of the cost of spectrum license amounting to Baht 129 million (2015: Baht 129 million).
In addition, Broadcast is required to pay license fee, other fees and fee for the Broadcasting and Telecommunications Research and Development Fund for the Public Interest as specified by NBTC.
In compliance with preconditions to receive the license, on 17 January 2014 Broadcast entered into a lease agreement to lease for digital terrestrial television service with the Royal Thai Army Radio and Television Station (“RTART”) to broadcast digital television signal via RTART multiplexes. The service will be valid from 17 January 2014 to 31 May 2028 and Broadcast must pay a monthly service fee as stipulated in the agreement.
25
Annual Report 2016
Mono Technology Public Company Limited 165