The regulator is threatening to ban directors of cash-strapped Thai TV Co from running a broadcasting business for three years if the company returns its two digital TV licences.
This could be another hardship for Thai TV, 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 facing losses of 300 million baht from running Loca children's and Thai TV 1177 news channels.
NBTC secretary-general Takorn Tantasith said Thai TV Co must pay the regulator the remaining five instalments of licence fees worth 1.6 billion baht even it wants to return the two licences.
"If the company does not pay the second instalment within 15 days after the May 25 deadline, its directors will be banned from operating broadcasting licences for digital terrestrial TV, satellite TV and cable TV for three years," he said.
Digital TV licence holders can broadcast their channels in every platform as a digital TV licence is universal according to the must-carry rule. If any digital TV licence holder wants to revoke the licence, they must request a new licence, for 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's chairwoman Pantipa Sakulchai said her company would focus on satellite TV after giving up on digital. If Ms Pantipa is banned, the company will establish a new entity to oversee its satellite TV business, it said.
Suchart Chomkul, a lawyer for Thai TV Co, insisted the company would not pay the remaining fees. "We must take a look at who really broke the contract," he said.
The NBTC has no right to seize Thai TV's guarantee letter as it has not worked to facilitate a smooth transition to digital TV and fumbled the subsidy voucher distribution, Mr Suchart alleged.
Kasikornbank chairman Banthoon Lamsam said the financial positions of all digital TV operators who used the bank's guarantee service remain in good shape despite competition and a weak economy.