True Corp says it seeks fairness in NBTC’s DTAC merger approval
Company argues that the NBTC's post-merger requirements for True are overly stringent
True Corporation, a major telecommunications provider in Thailand, has filed a petition with the National Broadcasting and Telecommunications Commission (NBTC) to review and enforce remedial measures after its merger with Total Access Communication (DTAC).
The company argues that the NBTC's post-merger requirements for True are more stringent than those imposed on the merger between Advanced Info Service (AIS) and 3BB.
True Corporation says that while both mergers involve significant industry players, the NBTC has not imposed similar sub-requirements on the AIS-3BB deal. The company believes that this disparity in treatment is unfair and could hinder its ability to compete effectively in the market.
An NBTC meeting on Monday was marked by discussions on this matter. During the meeting, the NBTC board was unable to reach a conclusion on comparative measures for telecommunications business mergers. The commission is expected to make a final decision on December 18.
True Corporation's chief executive officer, Chakkrit Urairat, said the company is not seeking to avoid compliance with the NBTC's conditions but rather seeks a level playing field. He emphasised that True has consistently adhered to regulatory requirements and has been a responsible corporate citizen.
True has been pursuing this request since February 2023.
The original merger was approved by the NBTC on October 20, 2022, with specific post-merger conditions. These included:
- Maintaining separate service brands for three years
- Preserving existing service contracts
- Publicising service quality and fair charging information
- Implementing a 12% average service rate reduction
- Establishing a subcommittee to monitor the merger and protect consumer interests
NBTC sources said the meeting on Monday stalled because the office failed to present a comparative study report. Some board members raised questions about whether mobile-phone and broadband businesses should be subject to identical post-merger measures.
The unresolved agenda highlights the complexities surrounding telecommunications-business mergers in Thailand.
The NBTC's decision on this matter will have significant implications for the Thai telecommunications industry. It will set a precedent for future mergers and acquisitions and impact the competitive landscape, with consumers awaiting clarity on potential service changes and pricing structures.
