Page 47 - 56-1 One Report 2022 EN

Part 1 Business Operation and Operating Performance

case. Hence the final judgment of the Court is not binding and cannot be enforced on the Company. Regarding the
Company’s THAICOM 4 operations, the Company proceeded properly in compliance with all its contractual and
legal obligations, having received Ministry approval.

Later, the Committee under Section 72 of the Private Investment in State Undertaking Act B.E. 2556 proposed to
amend the contract for the Thaicom 4 satellite to be integrated into a satellite under the concession agreement,
which the Ministry has brought in the agenda for consideration of the Cabinet. Subsequently, on September 7, 2021,
the Cabinet passed a resolution requesting the Ministry to proceed with Thaicom 4 as a project under the Public-
Private Partnership Act B.E.2562. The Ministry will coordinate with the Company to proceed in accordance with the
resolution of the Cabinet.

The Company considers that the Company has built and launched Thaicom 4 satellite, as well as delivered the
revenue sharing from Thaicom 4 to the Ministry and also fulfilled all duties and obligations under the agreement,
which expired on September 10, 2021. However, the Company will coordinate with the Ministry to find a suitable
solution for the benefit of all parties.

(C) Status of THAICOM 7 and THAICOM 8
The Company is currently operating THAICOM 7 and THAICOM 8 under a telecommunications license granted by
NBTC in accordance with the currently applicable laws, namely Telecommunications Business Act B.E. 2544 and
the Act on Organization to Assign Radio Frequency and to Regulate the Broadcasting and Telecommunications
Services B.E. 2553. The Ministry of Information and Communications Technology (currently the Ministry of Digital
Economy and Society, or Ministry) notified NBTC that authorization to use the orbital slots had been granted for the
two satellites in question and NBTC then referenced said authorization in the license granted to the Company.
2
Later, on 7 August 0 1 7 , the Ministry officially informed the Company that THAICOM 7 and THAICOM 8 are the
satellites under the Concession Agreement, and on 5 October 2017, the Ministry sent a letter again confirming that
THAICOM 7 and THAICOM 8 were under the concession and accelerates the Company to comply with the
agreement.

The extraordinary meeting of the Board of Directors No. 11/2017 dated 24 October 2017 was arranged to consider
this agenda together with the legal consultant cautiously and carefully. The Company has concluded that THAICOM
7 and THAICOM 8 are not the satellites under the Concession Agreement since the operation of both satellites is
under the licensing framework granted by the NBTC. Also, the Company complied with the terms and conditions of
the Concession Agreement completely with the different perspectives between the Ministry and the Company.

The meeting resolved that the Company submitted a formal letter to argue about the Ministry’s opinion by confirming
that the THAICOM 7 and THAICOM 8 operate under the licensing framework. Therefore, the Company has the right
to use Article no. 45.1 of the Concession Agreement by bringing the matter into arbitration. The Company filed its
dispute with the Thai Arbitration Institute on 25 October 2016, as a black case No. 97/2560.
According to Clause 45.6 of the Concession Agreement, in the event that the dispute is pending arbitration, the
parties still have to comply with the terms of the Concession Agreement. Therefore, while the dispute is pending
arbitration, the Company has no duties in compliance with the opinion of the Ministry referred to above until the
arbitral award.
Presently, the arbitration proceeding of the Thai Arbitration Institute, Office of the Judiciary has been completed
and on 6 October 2022, the Company received the arbitral award dated 29 September 2022 in which the Tribunal
unanimously awarded that THAICOM 7 and THAICOM 8 Satellites are not Satellites under the Agreement and the
Ministry’s counterclaim shall be dismissed. By such ruling, it is now clear that THAICOM 7 and THAICOM 8 Satellites

Part 1 page 33
