Academics divided on the impact of conditions set for True-DTAC merger
The conditions for the merger of True Corporation and Total Access Communication (DTAC) will benefit the telecom industry, a telecommunications academic said on Wednesday.
Suebsak Suebpakdee said the conditions should be applied to all operators in the industry to ensure maximum benefits for consumers.
The regulator, National Broadcasting and Telecommunications Commission (NBTC), last Thursday voted 3:2 in favour of the proposed merger.
The conditions set for the merged entity include service fee controls and ceiling, independent verification of cost structures and service pricing for at least five years after the merger, market space for the operation of mobile virtual network operators, and separate rates for voice, data and messaging services.
In addition, True and DTAC must use their existing brand names – True Move H Universal Communications (TUC) and Dtac TriNet (DTN) – for three years before they can adopt a new brand name and share their respective frequencies.
"We are confident that the merger will not cause unfair competition or negatively impact consumers," he said, adding that the merger will instead improve the telecommunication sector's efficiency and regional competitiveness.
However, Assistant Prof Suchart Tripopsakul, from Bangkok University’s School of Entrepreneurship and Management, said earlier that conditions prioritising consumer benefits may disrupt True and DTAC’s future strategy.
Suchart said the three-year embargo would affect True and DTAC’s plan to combine their strengths to attract more users, the core purpose of the merger. This condition alone would cost True and DTAC the opportunity to become the market leader immediately after the merger, he added.
