The decision was reached at the weekly Cabinet meeting, which is conducted every Tuesday, Dipavadi said.

After the cancellation of the contract, the government will then appoint new executive board to oversee the station, she said.

Meanwhile, Deputy Prime Minister Pridiyathorn Devakula said that the government's decision will not have impacts on iTV staffs and broadcast of the station.

"The station's broadcast will continue as usual. But the station will have to change the name," Pridiyathorn said.

iTV has been ordered to pay Bt100.343 billion penalty to the government, of which Bt2.21 billion was for unpaid concession fees, Bt464 million was the interest and a Bt97.76 billion fine for adjusting its television programming content without the consent of the concession owner.

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.

The Nation