The Central Administrative Court yesterday overturned a 2004 decision by an arbitration court that had significantly cut the network's concession fee.

However, the company's lawyer Chaiwat Marapreukwan said the battle was not over. "iTV will definitely appeal to the Supreme Administrative Court within 30 days," he said.

Shin Corp Plc is iTV's major shareholder with a 53 per cent stake. Singapore's state investment arm Temasek Holdings controls over 96 per cent of Shin, which was previously owned by caretaker Prime Minister Thaksin Shinawatra's family. Earlier this year it sold its majority stake to Temasek.

iTV's executive chairman Niwattumrong Boonsongpaisal said despite yesterday's court order, the company has yet to pay the retroactive concession fee, pending the appeal.

Eva Ho, director of corporate communications of Temasek, refused to comment on whether yesterday's ruling would affect Temasek's interests in iTV. "Shin is the parent of iTV, so Shin is looking into the matter," she said.

The court's decision yesterday would mean iTV having to resume paying the annual concession fee rate of 44 per cent of revenues or Bt1 billion per year - whichever is greater - to its concession owner the Office of the Permanent Secretary of the PM's Office.

At present, iTV pays only 6.5 per cent of revenue or a minimum of Bt230 million, granted by the ruling of the arbitration court in 2004.

Yesterday's ruling also called for the backdated concession fee to be paid to the government of around Bt1.5 billion, according to the estimates of analysts and iTV executives.

The court ruling also voided an easing in programming requirements under the arbitration court ruling, which had allowed iTV to adjust its news/entertainment programme ratio to 50:50 from the original 70:30.

The ruling yesterday reasoned that the arbitration court's ruling in the case of iTV exceeded its authority.

iTV had earlier asked the Office of the Permanent Secretary to compensate it, reasoning that the government had overcharged its concession fee. Moreover, iTV said its operation was adversely affected by the fact that some cable TV operators were found to run disguised commercials in defiance of their contracts. However, the government refused to do so.

Therefore, iTV filed the case with the arbitration court and later won the legal battle when the court allowed it to pay a much lower annual concession fee and enjoy the flexibility to adjust its programmes from January 30, 2004.

After the ruling, the Office of the Permanent Secretary asked the Central Administrative Court to override the arbitration court's ruling, citing the verdict exceeded that court's authority. The state agency awarded the 30-year-concession to iTV in 1995.

Deputy permanent secretary of the Permanent Secretary's Office, Julayudh Hiranyawasit, said a meeting would be held soon to see what it would do next with iTV.

iTV posted total revenues of Bt2.34 billion last year, up Bt504 million over 2004, thanks to improved ratings for its programmes, especially during prime time. Its net profit skyrocketed 232 per cent to Bt679 million from Bt205 million in 2004.

Brokerage houses rushed to lower the value of iTV Plc's shares in reaction to the Central Administrative Court's ruling.

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