Thai TV Co, owned by media veteran Pantipa Sakulchai, has finally decided it will soon give up its digital TV business after failing to pay the second instalment of its digital TV licence fee today.
Among 24 digital TV channels, Thai TV was the only operator missing payment of the 288-million-baht instalment for its Loca children's channel and 1177 news channel.
The company could not afford to pay the licence fees today as it faced a huge financial burden, said Ms Pantipa, the president.
Holders of the other 22 digital TV channels paid the combined 8.4 billion baht in licence fees to the National Broadcasting and Telecommunications Commission (NBTC).
The NBTC board ruled last week holders of all 24 licences must pay their fees by Monday without delay.
NBTC secretary-general Takorn Tantasith said it would transfer the second payment of digital TV auction fees to the state coffers soon.
Ms Pantipa did not provide details about Thai TV's failure to pay the licence fees. Earlier, she said Thai TV had suffered a 300-million-baht loss operating the two digital TV channels and a delay in the fee payment would give the company some breathing room.
She said digital TV did not have as bright a future as she expected, with delays in digital TV network expansion and subsidy voucher distribution. Channel numbering still remains an obstacle for digital TV operators, said Ms Pantipa.
She said she still has a myriad of assets to invest in her media outlets in the future.
"It looks like we will run our digital TV business separately without a financial partnership," said Ms Pantipa.
The Thai TV president used her own cash flow to support the two digital TV channels, forgoing a bank loan because she did not want to have debt.
After failing in the digital TV business, Thai TV is likely to engage in satellite TV and operate a channel in the near future, she said.
Ms Pantipa still has her TV Pool magazine operation that focuses on gossip about actors and actresses.
In April, Thai TV entered a partnership with satellite TV operator MV Television Co, allowing the latter to rent 40% of air time on Local Channel.
Mr Takorn said the NBTC would send a letter this week informing Thai TV of its failure to pay the licence fees.
Thai TV placed a bank guarantee worth 2 billion baht with the NBTC before obtaining the licences to run two digital TV channels. Its first instalment payment for the licence fee was 365 million baht.
After informing Thai TV, the regulator will charge a 7.5% annual interest rate for the overdue payment. After that, the NBTC’s legal office will interpret what it will do next.
Although all but one digital TV operators paid the second instalment, the NBTC could still face legal action as a group of operators such as GMM Grammy, Nation Multimedia Group, Bright TV, PPTV, and Thairath TV accused the regulator of failing to facilitate the rise of digital TV.
Many of them requested the broadcasting panel delay the second licence fee payment for another year, but the NBTC board refused to do so.
The board's ruling relied on consultation from two anti-graft bodies — the Office of the Attorney General and the Office of the Auditor General — which said a delay was not feasible because it would violate the rules governing the digital TV licence auctions.