The telecom regulator's request for the use of Section 44 to suspend debt repayments for digital TV and mobile operators is likely to be denied amid conflicting views on the issue, said the organisation's chief yesterday.
Takorn Tantasith, secretary-general of the National Broadcasting and Telecommunications Commission (NBTC), met Prime Minister Prayut Chan-o-cha, in his capacity as chief of the National Council for Peace and Order (NCPO), yesterday to ask the premier to use his special power to help operators of digital TV and the 900-megahertz mobile spectrum.
"Gen Prayut, however, is wary about the different views on the issue and told us to ensure the measures do not favour the private sector and that the country gains.
"The prime minister gave us one week to justify our request in writing by focusing on the national and public interests," said Mr Takorn.
Deputy Prime Minister Wissanu Krea-ngam, who chairs the working committee on the issue, would call a meeting before the proposal was resent to the NCPO, added Mr Takorn.
Gen Prayut's response came after the Thailand Development Research Institute (TDRI) said the NBTC's proposal excessively favoured the private sector.
Under the NBTC's proposal, debt payments should be suspended for three years for digital TV operators. They have also asked for the interest rate to be cut to 1.5%, the Bank of Thailand's policy rate.
For the two mobile phone operators -- Advanced Info Service Plc and True Corp -- the NBTC asked the NCPO chief to allow them to pay the last instalments of 59.5 and 60.2 billion baht respectively over five years, instead of in one lump sum in 2019.
A source said the NCPO will not turn down the proposal to give assistance to the operators, but it wants the NBTC to clearly justify itself following the TDRI's concerns about the state using executive powers to bolster private businesses.
TDRI chairman Somkiat Tungkitvanich previously posted on his Facebook page criticism of the NBTC's plan to request a Section 44 order for the purpose.
According to him, although the winning price of the 900-MHz licenses was likely inflated by JASMBB's bids, AIS and True Move had already decided to bid for the licenses and assistance given to them would be at the state's expense.
In his view, the interest rate of 1.5% a year that the two companies are seeking is too low compared to the 15% fine they should be paying after failing to adhere to the conditions of the auction.
The difference between the rates would essentially mean the state waiving 30 billion baht according to the contracts they signed.
A Yuanta Securities analyst, who requested anonymity, said the valuation of digital TV operators would remain the same whether the government helped them or not.
"Most giant digital TV operators said they will pay the licence fee as normal even though the NBTC is asking to extend the payment timeline because there is no reason to shoulder interest expenses when they have enough cash flow and payment ability,” said the analyst.