Advanced Info Service Plc (AIS), Thailand's biggest mobile operator by subscriber base, has petitioned the Central Administrative Court to revoke the National Broadcasting and Telecommunications Commission's (NBTC) resolution that allows the passage of the planned merger of True Corporation and Total Access Communication (DTAC).
The petition was filed by AIS subsidiary Advanced Wireless Network (AWN) on Nov 11, according to a telecom industry source who requested anonymity.
AWN also requested the court issue an injunction to the planned merger, pending the court's ruling.
On Oct 20, the NBTC board voted 3-2 to take the position it has no authority to consider approving or rejecting the planned merger, which in essence allows the amalgamation.
The board then acknowledged the planned merger and issued remedy measures.
According to the petition, the resolution conflicts with the past frequency licence auction's conditions that prohibit mobile operators from holding a combined spectrum bandwidth in several ranges that exceed its spectrum cap rule.
The rule is meant to prevent any companies or their affiliates from hoarding too much spectrum bandwidth on a range that could lead to unfair competition.
A source at AIS who requested anonymity said the spectrum cap rule resulted in additional costs for operators, which have to seek other spectrum ranges through auctions or partnership agreements to complement their spectrum portfolios.
The rule prohibits the holding of more than 30 megahertz of bandwidth on the 2100MHz range and 20MHz of bandwidth on the 700MHz range per operator, for example.
Currently each of the three major mobile operators holds 30MHz of bandwidth on the 2100MHz range. True and DTAC each hold 20MHz of bandwidth on the 700MHz range.
If the NBTC's resolution leads to the merger of True and DTAC, combining their spectrum holdings, the regulator should compensate AIS, the source said.
Another NBTC regulation allows a spectrum holder to transfer the spectrum it holds to others, but it has to pay 1% of its winning bid price as a fee to the NBTC office.
"If the merger is completed, AIS wants to see this fee payment to the NBTC for the public benefit as a result of spectrum transfer," the source said.
AIS has expressed opposition to the planned merger, saying it will reduce the number of major operators from three to two and lessen options for promotions, after-sales services and mobile signals.
AIS chief executive Somchai Lertsutiwong declined to comment on the court petition.
On Nov 10, the Thailand Consumers Council also petitioned the Central Administrative Court to repeal the NBTC's resolution. The council said the regulator's decision would lead to market control and unfair competition, alleging the NBTC's decision and voting process were illegitimate.
