Prime Minister Prayut Chan-o-cha exercised Section 44 of the interim constitution Tuesday to extend the auction fee payment period for digital TV operators.
He also extended the deadline for 21 state agencies and enterprises to return a combined 537 radio spectrum ranges for reallocation due in April for another five years.
Sansern Kaewkamnerd, a government spokesman, said in order to ease the financial burden of digital TV operators amid tough competition, they would be allowed to divide their fourth payment of auction fees into two instalments a year. However, digital TV operators have to pay interest at a rate of 1.5% a year.
Similar payments are also allowed for the fifth and sixth payments.
The NBTC granted 24 digital TV channel licences to 17 winning bidders in April 2014. The winners have to pay a combined 50.9 billion baht in auction fees that are spread out over six years. The fourth payment is due in May 2017, the fifth in May 2018 and the last in May 2019.
Thawatchai Jittrapanun, a commissioner at the National Broadcasting and Telecommunications Commission (NBTC), said he agreed with the move to use Section 44 to help digital TV operators because it gives them a chance to improve their financial problems and produce quality content for the TV industry.
But Mana Treelayapewat, dean of the School of Communication Arts at the University of the Thai Chamber of Commerce, said the move only helps digital TV operators in the short term.
For the long term, the government should think about the national interest first before approving any measure delaying or reducing auction fee payments for digital TV operators.
"Is it fair to help digital TV operators in every aspect as they are the ones who decided to bid for channel licences?" he said. "If they can generate higher revenue in the future, will they pay more to the government?"
Media analyst Time Chuastapanasiri believes the use of Section 44 will benefit only some digital TV operators, not every player.
He said the NBTC should push for effective implementation of a master plan on the digital TV transition. Following the digital TV auctions, the regulator should have worked hand-in-hand with the government to shape the industry during the transition, said Mr Time.
Suwat Techawatanavana, first senior vice-president at Kasikornbank, one of the key issuers of bank guarantees for digital TV licence holders, said the move will extend breathing space to digital TV operators, allowing them to better manage cash flows and enabling expenses to more closely match their revenue.
Postponing the fee payment could also help attract new investors to join the business through partnerships or mergers and acquisitions, he said.
A few new investors have been brought in recently by ailing digital TV operators through acquisitions or partnerships, said Mr Suwat. This is a concrete sign of that trend continuing next year, he said.
"The digital TV business is expected to bottom out this year and then start picking up next year. New players are coming into the business through financial support and some potential partners can offer support based on their strong content production," said Mr Suwat.
"We can help out some customers by playing matchmaker."
Weerasak Suthanthawiboon, executive vice-president of Bangkok Bank, another key guarantee issuer, including for Thai TV Co, said the bank expects to freeze compensation payment to the NBTC for more than one year as it awaits the Administrative Court judgement of the dispute between Thai TV and the regulator. The legal process is expected to span more than one year.
Digital TV operators should search for other options to survive, such as business partners, said Mr Weerasak. The bank will support customers strengthening business operations.
In another development Tuesday, the Central Administrative Court issued an injunction at the request of Thai TV Co after the NBTC asked Bangkok Bank, its bank guarantee issuer, to pay the remaining auction fees.
Bang Bank has already paid the defaulted second and third instalments of auction fees on behalf of Thai TV, but the NBTC pressured the bank to pay out the remaining instalments.