Thai telecom regulator to approve True-Dtac merger this week: source
Thailand’s telecom regulator will approve the controversial planned merger between True Corporation and Total Access Communication (Dtac) despite an independent study showing it will hurt competition, a source familiar with the matter said on Tuesday.
The National Broadcasting and Telecommunications Commission (NBTC) will meet on Thursday to vote on the True-Dtac merger, having received only two of three reports commissioned from its foreign adviser.
The NBTC has hired UK-based SCF Associates to conduct an impact study of the proposed merger. SCF is contracted to submit three reports for the study – on September 14, October 14, and November 14.
However, the NBTC decided to meet on Thursday after insisting it already has enough information to rule on the deal, said the source.
The source quoted the NBTC as saying, “The first and second reports already cover the impact of the merger as well as economic models from other countries that have undergone similar mergers of telecom operators. Furthermore, the NBTC has received additional information from its four subcommittees regarding the merger, which should be enough to make a decision.”
The source said it is thought the NBTC will vote 3:2 to approve the True-Dtac merger.
A copy of the first SCF report obtained by The Nation said the merger would adversely affect competition in the Thai mobile market for data, voice and messaging, as well as the market for bundled services integrated with mobile connectivity, which characterises the country’s current and future mobile market. It also found that uncompetitive market conditions resulting from the merger would be difficult to rectify via the introduction of new operators.
The full story on the UK advisor’s report can be found here.
