Operators of five digital TV channels filed a lawsuit against the National Broadcasting and Telecommunications Commission (NBTC) for failing to facilitate the smooth digital transition.
Thairath TV, PPTV, Bright TV, One Channel and GMM Channel are demanding 9.55 billion baht in compensation plus 7.55% interest from the regulator for business losses.
In a joint statement Monday, they said the NBTC had ignored or delayed its duty and responsibility to move forward the digital TV transition.
This caused delays in the distribution of subsidy coupons and expansion of the digital TV network, while the move to control the quality of set-top boxes was very slow.
Moreover, the regulator did little to build public awareness of digital TV, meaning many people were uneasy about shifting to the new format. This led to low viewership and low advertising airtime rates.
"The NBTC was too slow or failed to issue new rules and regulations to promote fair competition for digital TV," the statement said.
Currently there are 24 digital TV channels, which started broadcasting from April 2014. Their performances are not healthy, and most of them are facing losses.
The first victim is Thai TV Co, which operates two digital TV channels and is on the brink of quitting. It has failed since late May to pay the 288-million-baht second instalment of its licence fee to the regulator.
Thai TV has been given until Oct 31 to find business partners to shore up its fragile operation. Initially, the company wanted to return the two licences and stop broadcasting on both channels, Loca and Thai TV news.
Prior to this, the NBTC and Thai TV had a major dispute, as the regulator wanted to claim money from the company's bank guarantee but the latter refused to pay. Thai TV took the case to the Central Administrative Court, but both sides were told to settle the case themselves.
The statement also mentioned the NBTC was careless or provided inaccurate information about its readiness to push for digitisation, so digital TV operators joined the digital TV auctions in late 2013.
Most digital TV operators wrongly believed they could choose the channel numbers if they won the bidding based on the highest price.
This prompted many to tender higher-than-expected prices for the licences.