Digital TV operators rejoiced as the Central Administrative Court handed down a ruling that will open the door for them to renounce the digital TV licences that threatened the financial health of their business.
The development is a victory for digital TV operators and will set the norm for the country's digital TV and telecom industries in the future.
Sikares Sirakan, an independent digital and new media academic, said Thai TV benefited from the Central Administrative Court order that sets the record straight with regard to the NBTC's failure to meet its commitment to provide digital TV infrastructure and to follow the roadmap it identified at the beginning of the auction to transform digital TV.
Many academics thought Thai TV had an advantage in the case. Mr Sikares said the ruling could produce three interesting results.
First, both the NBTC and Thai TV will appeal to the Supreme Administrative Court, as Thai TV demands additional compensation from the NBTC and the NBTC asks for a full review of the issue.
Second, other digital TV operators may consider terminating their service instead of making a fifth licence payment in May, in order to avoid shouldering a substantial amount of sunk costs. Two years ago, 11 digital TV operators filed a lawsuit against the NBTC in the Central Administrative Court.
Third, Thai TV's victory will prompt the government to invoke Section 44 to solve the industry's problems. The resolution will offer an end to the turmoil by giving operators the chance to exit the licence regime, and is hence a win-win situation for both the state and the private sector to a certain extent.
"We must deliver proper measures to end the problem before May," Mr Sikares said, "since operators have to make their remaining licence payments for 2018."
"Today's verdict will be important for digital TV operators moving forward," said Navamin Prasopnet, managing director of Mono Broadcast Co (Mono 29). "I personally think it is a good idea to help those who are not able to continue their business by allowing them to return their contract or channel. Overall, today's decision is a victory for operators.
"There are many options for the industry in light of this development. On the one hand, we can provide a solution for the digital TV operators who decide to bring new players to the marketplace. On the other hand, we can aid legacy players who already own channels to conduct a viable offline TV business, by allowing them to upgrade their channels from standard to high definition."
Anupap Tiralap, an independent academic, said the Central Administrative Court's ruling will set a new standard for digital TV licensing auctions. Operators that are ailing financially may very well follow the same path as Thai TV.
But the ruling may also set the stage for digital TV operators that are running business as usual to return their licences and shift to the satellite TV sector, Mr Anupap said.
The NBTC had it wrong from the beginning, he said. The development path of the country's digital TV industry can go through the satellite broadcasting platform, which is much cheaper and requires no operating licence auction.
Households, especially in provinces, prefer to watch TV via satellite.
Operating costs for satellite broadcasters are also lower than those of their digital counterparts, Mr Anupap said.
According to Supap Kleekrajai, chairman of the Digital Terrestrial TV Channel Operators Club, the court's ruling is just the beginning and the final determination will be made by the Supreme Administrative Court after both parties appeal. The ultimate ruling will become the standard for digital TV operators.
"What I expect beyond the standard is the amendment of the NBTC Act by the government's Section 44," Mr Supap said.
Takorn Tantasith, secretary-general of NBTC, said the ruling will ease many procedures. Deputy Prime Minister Wissanu Krea-ngam tomorrow will invite digital TV operators and the NBTC to discussions at Government House.
The Association of Digital TV Operators since last year had urged the government to invoke Section 44 help them weather the industry's crisis. Operators submitted their proposals directly to the government and through public forums.
The association asked the government to eliminate the rental fee of broadcasting networks, known as MUX (due in January 2018); to waive licence payments starting from the May 2018 instalment; and to allow operators to exit the business.
The NBTC board agreed to ease the burden of the digital TV operators and submitted its opinion to the government towards the end of last year, since the NBTC board did not have authority to take action itself.
Previously, Deputy Prime Minister Prawit Wongsuwan said the government would invoke Section 44 to ease the chronic financial burdens of existing terrestrial digital TV operators and allow them to continue operating.
The government, however, has yet to invoke Section 44 on the issue.
Thai TV president Pantipa Sakulchai said she plans to file a lawsuit against the NBTC to pay the company 700 million baht as a remedy.
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