So much for reform

The protracted failure to bring the National Broadcasting Commission into existence raises concerns about the prospects for free and fair competition that will serve the public rather than the state and vested interests

By BAMRUNG AMNATCHAROENRIT

ITV's lastest attempt to improve its news programmes has taken to the skies. The station was recently allowed to reduce its news-to-entertainment ratio to 50:50 from 70:30, sparking an outcry from groups who don't want to see the station deviate from its original objectives.

Practically no progress has been made toward media reform since Thaksin Shinawatra took office in early 2001 despite the provision under the 1997 Constitution for the establishment of the National Broadcasting Commission (NBC) to pave the way for change.

With constitutional duties to distribute the frequencies for radio or television broadcasting, which are regarded as national resources, the NBC is intended to be an independent regulatory body to ensure fair and free competition among operators for the "utmost public benefit" at national and local levels in education, culture, state security and other public interests.

Despite its noble raison d'e{ACI}tre, political infighting has delayed the establishment of the body for seven years, reflecting a lack of sincerity in part of the government. In essence, all television and radio stations today remain firmly under the control of the government, even iTV, a legacy of the Black May struggle in 1992.

The failure of Thai government-controlled TV stations to report fairly on the street demonstrations and brutal suppression of May 1992 eventually led to the creation of a non-governmental broadcaster known as Independent TV, or iTV, in 1997.

For a period of time, iTV led other channels in adopting a more investigative style of news and current affairs. iTV hidden cameras, for instance, exposed corrupt traffic police activities. Its hard-hitting approach to political reporting has had substantial influence on the other channels.

But the station created specifically to withstand political interference fell apart financially. Quality news production notwithstanding, iTV bled heavily and fought for its life. To the rescue came Shin Corporation Plc, the telecommunications empire owned by Mr Thaksin's family members, which bought a controlling stake in iTV and became the major shareholder.

Since then, the tide has turned. The haemorrhage has slowed and so have its trend-setting, eye-opening news reports, especially those on high-ranking officials or the government. The iTV once mentioned with respect and awe for its high-quality, dauntless news reports has faded from the public's memory.

In December 2003, noted game show host Traiphop "Toi" Limpaphat left Channel 3 and joined iTV, which reportedly sold him 10% of shares in a deal worth some 1.5 billion baht. The deal stirred a debate yet again over whether the ruling Thai Rak Thai party's agenda possibly creeping onto the airwaves.

Later, iTV won an arbitration ruling over its concession fee and was granted a permission of broadcasting more entertainment programmes. The ruling could help the station save 17 billion baht if the the arbitration panel's decision to cut its annual concession fee to 230 million baht was upheld. Last year, the station paid a concession fee of 800 million baht.

The panel also agreed to allow iTV to reduce its news-to-entertainment ratio to 50:50 from 70:30 previously, sparking an outcry yet again from some groups who hate to see the station deviate from its original objectives and end up in the same league as the remaining TV stations in terms of contents.

While it remains debatable whether the changes iTV has undergone are for better or worse, they definitely are a blessing financially. The station posted its first-ever profit of 24 million baht for the first quarter of 2004, a significant improvement from a net loss of 213 million baht in the same period of 2003. Managing director Songsak Premsuk humbly attributed the better performance on the overall expansion of the media industry, which grew by 20% in the first quarter the year.

Meanwhile, the Mass Communication Organisation of Thailand (MCOT), operator of television Channel 9, is preparing to list on the Stock Exchange of Thailand as part of the government's privatisation plan.

Although the plan has faced opposition from those who cite a possible violation of Article 40 of the charter since the NBC has yet to be set up, the MCOT has moved ahead with the plan and sale of the its initial public offering shares will start in the third of this year. The fund raised will be use to launch a new MCOT 1 English-language channel and expand its programming around the world.

As well, the agency also took back control of 62 AM and FM radio stations nationwide from concession holders and operate them directly, citing the necessity to boost its sales revenue prior to listing.

The MCOT under a tenure of Mingkwan Sangsuwan, who was appointed director-general in 2002, is dedicated to serving the government's policies. A former senior public relations executive of Toyota Thailand, Mr Mingkwan is perceived as having a strong connection with cabinet members, especially Finance Minister Somkid Jatusripitak.

Although the impartiality of the MCOT and its leader remains in question, its popularity among media buyers has largely been unaffected. For the first half of its fiscal 2004 starting in October 2003, the MCOT posted a 80.2% surge in net profit to 650.3 million baht.

Overall, television has shown strong growth in recent years and remains the medium of choice among producers despite various political and economic challenges. Spending on television alone in 2003 rose by 13.25% to about 42.28 billion baht. The industry grew by 13.57% to about 37.33 billion in 2002 and 7.9% to about 32.87 billion in 2001.

Although the spending on television in the first quarter of 2004 rose by 19.7% to about 11.61 billion baht, there was still room for further growth on the back of strong economic recovery and consumer spending, according to the research company.

But in the absence of the NBC, the industry remains directionless and firmly in the grip of the authorities.