The telecom sector this year has been dominated by movements surrounding the planned merger of True Corporation and Total Access Communication (DTAC), the second and third biggest mobile operators in the country by subscriber base, respectively.
Despite being announced in November 2021, the amalgamation of the two carriers has yet to be completed this year, amid intense debates surrounding the merit of the deal.
The mega deal attracted heavy opposition from consumer advocates and academics who suggested the merger would potentially reduce market competition while pointing out that consumers could face a hike in service fees.
As of the end of the third quarter, True had 33.6 million subscribers while DTAC had 21 million. Their arch rival Advanced Info Service Plc (AIS) had 45.6 million subscribers.
The deal's opponents also pressured the National Broadcasting and Telecommunications Commission (NBTC) into rejecting the deal.
Attempts by True and DTAC to wrap up the deal quickly were set back by an NBTC reshuffle in April 2022, which saw five new commissioners come into office.
To thoroughly scrutinise the deal, the NBTC set up five subcommittees to vet the planned merger and held focus group hearings to gauge the impact of the deal. Independent advisors were also assigned to examine the deal.
On Oct 20, the NBTC decided in a vote of 3-2 that it had no authority to consider approving or rejecting the planned merger, which technically paves the way for the amalgamation to proceed.
However, the regulator issued a raft of measures meant to regulate the merger in order to protect the interests of the consumer, including an obligation that True Move H Universal Communication (TUC), a mobile business arm of True, and dtac TriNet (DTN), a mobile service unit of DTAC, must have separate service brands for a period of three years.
Following the NBTC's decision, the Thailand Consumers Council (TCC) and AIS subsidiary Advanced Wireless Network (AWN) petitioned the Central Administrative Court to revoke the decision.
In November, True and DTAC announced the abolition of a tender offer by their two affiliates previously set in order to acquire their shares to create a path for the merger.
Despite this, True and DTAC said they are still committed to completing their amalgamation by the first quarter of 2023.
It remains to be seen how the merger deal would fare next year as it is surrounded by legal challenges and the tough remedy measures issued by the NBTC.
