True, Dtac merger given regulatory approval

True, Dtac merger given regulatory approval

Thailand’s telecoms regulator has given approval for the merger of True Corp and Total Access Communication (Dtac), a year after the announcement but the regulator has set conditions, reported Bangkok Post.

The National Broadcasting and Telecommunication Commission (NBTC) detailed that it will set conditions such as a price ceiling and price controls.

Other conditions include requiring independent verification of operator cost structure and service fees for a minimum of five years.  

The NBTC also added voice, data and message rates have to be shown separately and based on average cost pricing.

The merger was scrutinised by multiple parties in Thailand as it would leave only two mobile operators in the market. Advanced Info Service (AIS) is currently the market leader with 44% of mobile subscribers but will fall into second place as True and Dtac hold 34% and 21% respectively.  

Bangkok Post recently reported the NBTC was seeking to impose strict conditions on True and Dtac’s merger. The merger has drawn criticism from parties such as AIS and other branches of the government, due to concerns regarding competition.

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