Court to Rule on NBTC’s Acknowledgment of Controversial TRUE-DTAC Merger

A verdict is set to be read on September 26th in the lawsuit challenging the controversial merger of Thai telecommunications giants True Corporation and Total Access Communication (DTAC).

The case, brought by Thailand’s Consumer Council (TCC) and five other plaintiffs, targets the National Broadcasting and Telecommunications Commission (NBTC), accusing the regulatory body of unlawful actions.

The lawsuit, officially Case No. 2421/2022, was filed on November 10, 2022.

The plaintiffs allege that the NBTC’s decision to just “acknowledge” and thereby approve the merger at a special meeting on October 20, 2022, was illegal. They argue that by simply “acknowledging” the business merger and setting general conditions, the NBTC failed to properly assess the potential for a telecommunications monopoly.

The lawsuit was initially dismissed by the Central Administrative Court, but the Supreme Administrative Court later reversed that decision, allowing the case to proceed due to its significant public interest.

The merger, which officially completed on March 1, 2023, created a new market leader, and reduced the number of mobile operators in Thailand from three to two: the newly merged TRUE-DTAC and Advanced Info Service (AIS).

This shift has led to significant issues with competition and consumer welfare.

Despite the NBTC’s imposition of conditions aimed at protecting consumers and fostering competition, the conditions have not been enforced by the NBTC.

• Consumer Protections Ignored: The NBTC mandated a 12 percent reduction in the average service rate within 90 days of the merger. However, consumers report little evidence of such a price drop. Instead, they are often pushed toward expensive, bundled packages, and the promised unbundled service options have not materialized.
• Competition Crushed: A key condition was for the merged entity to provide fair access for Mobile Virtual Network Operators (MVNOs), requiring the establishment of a dedicated business unit for them. Yet, over two years later, zero MVNOs have been given access. This failure to enforce network access, along with the NBTC’s decade-long inaction on the matter, has led to the total collapse of Thailand’s MVNO sector, with all remaining operators ceasing services by August 2025. This has effectively left consumers with a duopoly and no low-cost alternatives.

The lack of enforcement by the NBTC has been a central point of contention, with critics stating that the regulator has neglected its duty. The outcome of the court’s verdict on September 26th could determine the future of regulatory oversight and market competition in Thailand’s telecommunications sector.