Consumer watchdog sues NBTC to get True-Dtac merger revoked
The Foundation for Consumers has taken legal action to reverse the National Broadcasting and Telecommunication Commission (NBTC)’s green light for the merger of Thailand’s second and third-largest mobile network operators.
On Wednesday, lawyers for the foundation filed a lawsuit at the Central Administrative Court seeking revocation of the NBTC’s endorsement of the merger between True Corporation and Total Access Communication (Dtac), arguing that the regulator was not authorised to do so and its decision was unlawful.
The foundation’s lawsuit alleges that the NBTC decision, made at a special meeting of its commissioners on October 20 last year, favoured the private businesses involved.
The 3:2 vote endorsing the proposed merger was made without taking into account the opinions of stakeholders and public members, or a report by the NBTC’s foreign consultants and local independent advisers, the plaintiff said.
“This act violated relevant laws, announcements, rules and regulations,” the lawsuit says.
The foundation took its case to court after its executive board resolved on Tuesday to sue the five NBTC commissioners and the NBTC office over the controversial True-Dtac merger.
Foundation director Kotchanuch Sangtalang said that Thai consumers were affected by the merger as it reduced the number of mobile network operators from three to two.
“The merged company has become the biggest, with a market share of over 50%. This has brought a near monopoly in the telecoms sector, rather than improving its quality. There is now a risk of price fixing and increases in service charges. Competition in the mobile phone market will be very low,” she said.
Kotchanuch said the foundation was duty-bound to take legal action against the NBTC under its remit to protect consumer rights and the public interest.
True and Dtac agreed to call the newly merged company True Corporation, which has been registered with the Commerce Ministry’s Business Development Department.
The merger will boost True Corporation’s customer base to 55 million, overtaking the 45 million of current market leader Advanced Info Service (AIS).
Under merger conditions set by the NBTC, the new entity must retain the True and Dtac brand names and continue providing services and promotional rights to their existing customers for three years.
