The alternatives were put to a meeting yesterday involving iTV, the owner of its concession - the Office of the Permanent Secretary of the PM's Office - and the state panel coordinating matters between iTV and the PM's Office relating to the concession.

Discussions involved the five options, which will be forwarded to the Cabinet for consideration.

The meeting did not touch on penalties of nearly Bt100 billion that iTV faces for violating the conditions of the concession.

Chulayuth Hiranyavasit, head of the Permanent Secretary's Office, said the five options put forward by iTV to clear the overdue concession fee included repayment by iTV of Bt750 million in cash, plus Bt1.5 billion through issuing new shares, allowing the PM's Office to own 55.4 per cent of the broadcaster.

Others included the unloading by Shin Corp of all its 638 million shares in iTV to general investors, the acquisition of all iTV shares by the government and iTV's payment of the unpaid concession fees in instalments.

The final option is that the government revoke iTV's concession on the grounds that the broadcaster cannot finance the unpaid concession fees.

Chulayuth said the coordination panel rejected the first option on the grounds that it did not comply with the concession contract. It said the second option was a matter for the broadcaster's management to decide.

The panel also brushed aside the third option, again saying it did not comply with the concession contract.

"As for the fourth option, iTV has yet to come up with the full details, but we're likely to take it into consideration. We must wait for full details from iTV so we can consult with the Finance Ministry about whether payment by instalments is possible," said Chulayuth.

"Concession revocation will be the last measure. If we must do it, we need Cabinet approval first," he said, adding that the PM's Office would send all five of iTV's proposals for the Cabinet's consideration.

An analyst commented that the probable outcome would be either the government taking all of iTV's shares or revoking the concession, given that it intends to take back the concession in any case.

He questioned the option involving Shin selling its shares to general investors, because the shares would be unattractive given that iTV still owed a fine of Bt97 billion imposed by the PM's Office.

Meanwhile, the PM's Office is considering extending the deadline for payment of the fine and the overdue concession fee beyond the end of this month but says the extension will not be for more than 45 days.

As of last month, iTV had to pay a total of Bt100.343 billion to its concession owner, of which Bt2.21 billion was for unpaid concession fees, Bt464 million was interest and Bt97.76 billion was a fine for adjusting its television programming content without the consent of the concession owner.

The PM's Office will inform the Arbitration Institute today that it will not settle its dispute with iTV over the fine before an arbitration panel.

The dispute between iTV and the PM's Office began in September 2002, when the broadcaster appealed to an arbitration panel over its dispute with the PM's Office regarding the terms of its concession contract.

In January 2004, the arbitration panel allowed iTV to pay a lower concession fee and adjust the ratio of its news and entertainment programming by raising the entertainment content.

The PM's Office appealed to the Central Administrative Court, which last May overruled the arbitration panel's decision. The broadcaster later appealed to the Supreme Administrative Court, which last month upheld the ruling of the lower court.

As a result, the PM's Office is demanding immediate payment of the fine, plus backdated concession fees.

Piyanart Srivalo

The Nation