Regulators have threatened to ban directors of cash-strapped Thai TV Co from running broadcasting businesses for three years if the company returns it two digital-TV licences.
The decision added to another hurdle for the entertainment TV operator, which failed to pay the second instalment of licence fees worth 288 million baht to the National Broadcasting and Telecommunications Commission (NBTC) on Monday.
The company is also facing 300-million-baht losses from running Loca children's and Thai TV 1177 news channels.
NBTC secretary-general Takorn Tantasith said on Wednesday Thai TV Co had to pay the regulator the remaining five instalments of licence fees worth 1.6 billion baht even though it wanted to return the two licences.
"If Thai TV does not pay the second instalment within 15 days after the May 25 deadline, its directors will be banned for three years from operating any broadcasting business including digital terrestrial TV, satellite TV and cable TV for three years," he said.
Digital TV licence holders can broadcast on all platforms as the licences are universal under the must-carry rule. But if any digital TV licence holder wants to return the licence, it must request a licence for each platform, satellite TV in particular.
Satellite TV allows operators to advertise a maximum of six minutes per hour, while digital TV gets 12 minutes.
Thai TV Co chairwoman Pantipa Sakulchai said her company would focus on satellite TV after giving up the digital TV business.
Its director Pinyo Rutham said the company would run its Thai TV 1177 news and Loca channels on the satellite TV platform.
If Ms Pantipa is banned, the company will establish a new entity to oversee the satellite-TV business.
Suchart Chomkul, a lawyer of Thai TV Co, insisted that the company would not pay the overdue and remaining installments worth 1.6 billion baht.
"We must take a look who really broke the contract," he said.
The NBTC has no right to seize the company's guarantee letter as it has not done enough to facilitate the smooth digital TV transition.
The NBTC has not expanded the digital-TV network nationwide within four years while the subsidy voucher distribution was delayed, he said.
Banthoon Lamsam, board chairman of Kasikornbank (KBANK), said all digital TV operators who used the bank's guarantee service were financially strong despite tough competition in the industry and the lacklustre economy.
The bank is the second largest guarantee provider for digital TV operators after Bangkok Bank (BBL). It offered bank guarantees to a number of digital-TV operators including Amarin TV, Nation TV, and Now26 TV. It also lent to some digital TV operators.
The bank will consider setting aside additional loan-loss reserve for the digital TV business to cover the higher risks, he said.
"Strong content is a key factor to survival. The sector still has (business) potential, but adjustments are needed to get through the difficult period," he said.