Cash-strapped digital TV operator Thai TV Co took the pre-emptive move of going off the air ahead of the regulator's deadline yesterday, citing its failure to find new partners prepared to share the hefty auction fees.
Thai TV shut down its two digital channels -- Loca children's channel and Thai TV news -- on Sunday night, one day before the regulator's Nov 2 deadline, which had been extended from last Saturday by the National Broadcasting and Telecommunications Commission (NBTC).
NBTC secretary-general Takorn Tantasith reiterated Thai TV was still supposed to pay the second instalment of the auction fee, totalling 288 million baht plus 7.5% interest, and the licence fee by 4pm yesterday despite the company going off air in advance.
Thai TV, led by media veteran Pantipa Sakulchain, could not be reached yesterday.
Industry veterans, meanwhile, believe Thai TV's pre-emptive move was to stem its financial losses for daily operations.
In addition, the company could not finalise a partnership deal with Chalermchai Mahahitsiri, heir to the Thai Nescafe coffee empire.
Thai TV failed to pay the second auction fee instalment in late May, saying it was losing more than 300 million baht from running the two digital channels. The company wanted to return the two licences to the NBTC but was told to pay the remaining auctions fee totalling 1.6 billion baht.
It blamed its losses on the regulator, which it said could not facilitate a smooth digital TV transition. The digital network roll-out and distribution of subsidy coupons were delayed, affecting public awareness of digital TV and lowering viewership, the company claimed.
"The NBTC will have to suspend Thai TV's two digital TV licences for 30 days starting from Nov 3," Mr Takorn said.
He said if Thai TV did not accept the suspension, it could seek an injunction from the Central Administrative Court.
Natee Sukonrat, chairman of the NBTC's broadcasting committee, said the regulator would give Thai TV 90 days to pay the second instalment by the first week of next February.
If Thai TV remains unable to pay the second instalment by that time, its two licences will be revoked and it will still have to pay the remaining auction fee, he said.
However, Mr Natee said Thai TV could avoid the revocation of its licences if the company agreed to enter a compromise agreement with the NBTC through new payment terms.
Mr Takorn said Thai TV's blackout would not violate the NBTC's broadcasting rules, adding that the Central Administrative Court had given Thai TV a chance to find a business partner to help pay the auction fees.
A broadcast engineering source said Thai TV ended its broadcast of the two channels on its own by stopping transmission of its signal from its headquarters on Lat Phrao Soi 101.