Cash-strapped Thai TV Co risks losing its letter of guarantee worth 1.6 billion baht if it returns two digital channel licences to the National Broadcasting and Telecommunications Commission (NBTC).
The company, owned by media veteran Pantipa Sakulchai, submitted two letters to the NBTC on Monday saying it wanted to return its two digital channel licences.
The company also said in the letters that its two digital channels had been negatively affected after the NBTC allegedly failed to comply with its regulations to facilitate a smooth transition to digital TV.
The regulator is causing a slow digital TV network expansion and a delay in the distribution of subsidy vouchers, while channel numbering is very confusing and remains a big obstacle for all 24 digital TV channels, the letters claimed.
"The alleged negligence by the regulator has worsened the situation, causing all digital TV operators including Thai TV to have only a small number of viewers," Ms Pantipa said in the letters.
The company is now suffering a 300-million-baht loss from running two digital TV channels — the Loca children's channel and the 1177 news channel.
Thai TV Co plans to seek financial compensation from the NBTC to alleviate its damages.
The company was the only digital TV operator failing to pay the second instalment of licence fees, worth 288 million baht, on Monday.
The other 22 channels paid a combined licence fee of 8.4 billion baht to the regulator without delay.
A company source said Ms Pantipa did not know Thai TV's letter of guarantee worth 1.6 billion baht would be seized by the regulator if the company returned the two licences.
Bangkok Bank is the issuer of the letter of guarantee to Thai TV Co.
NBTC member Thawatchai Jittrapanun said he wanted Ms Pantipa to reconsider her decision to return the two digital licences.
"Even if Thai TV returns the digital TV licences to the NBTC, it must still pay the remaining five instalments plus value-added tax totalling 1.75 billion baht. If not, the NBTC will seize its bank guarantee," he said.
Thai TV Co won the auctions for two digital TV channel licences in December 2013. The licence for the Loca children's channel is worth 648 million baht and for the 1177 news channel 1.3 billion.
Including value-added tax, the combined licence fees will total 2.1 billion baht. The first instalment of licence fees was paid last year at 365 million baht.
Mr Thawatchai said Thai TV Co had two options to avoid seizure of the bank guarantee.
First, the company can rent 40% of its airtime to others, while the other option is to seek business partners to hold its shares at a maximum of 49%.
The NBTC's broadcasting panel will hold a special meeting today, with Thai TV Co invited to discuss its licence return.
The commissioner insisted digital TV was well designed.
He admitted major problems had been the delays in subsidy coupon distribution and weak public relations campaigns to inform the public but said these had been resolved.
If Thai TV Co really wants to return its two digital licences, the NBTC will either hold a new auction or reserve the two frequencies to upgrade some of the remaining channels into high-definition broadcasts, Mr Thawatchai said.
Ms Pantipa claimed her company ran the two digital TV channels using her own cash flow.
She did not obtain any bank loans and used her property in London as collateral to back the letter of guarantee.
A company source said Thai TV would shift its airing system from digital terrestrial TV to satellite TV. So far, none of the 500 staff has been laid off.