Three of the five board members of the National Broadcasting and Telecommunications Commission (NBTC) are looking into tough remedy measures to govern the amalgamation deal of True Corporation and Total Access Communication (DTAC) in what appears to be a discouragement for the merger, an industry source said.
The NBTC will hold a meeting on Thursday when it is expected to come up with resolutions to govern the telecom mega deal.
The source, who requested anonymity, said the board is likely to define its authority first as to whether it has the power to consider approving or rejecting the merger at the meeting.
It is most likely the board will eventually allow the deal to proceed but the majority of board members will push for harsh measures to govern the deal, the source said.
"Approving the deal to proceed is the safe way to guard against future legal backlash of Section 157 of the Criminal Code, which concerns malfeasance," the source said. This section targets state officials who cause damage to the state's benefits.
Previously, True's minority shareholders filed a complaint based on Section 157 against the NBTC for a delay in making a decision on measures to govern the deal, saying the prolonged process is damaging their benefits and the industry as a whole.
If the board gives the green light to the deal but prescribes strict measures, the commissioners would avoid a Section 157 backlash as the merging parties can only lodge a petition with the Administrative Court, asking it to revoke the board's resolution that involves harsh measures.
If that is the case, the deal's procedure could get stuck until the court makes the ruling.
The measures to be prescribed on Thursday could be harsher than the 14 measures drafted and proposed by the office of the NBTC, which are seen as "too weak" by some commissioners, the source said.
The draft prohibits the merger of True Move H Universal Communication (TUC), a mobile business arm of True, and dtac TriNet (DTN), a mobile service unit of DTAC, within three years.
TUC and DTAC also face a ban on frequency sharing for three years. TUC and DTN will also be forced to allot 20% of their mobile network capacities for mobile virtual network operators for rental.
According to the source, Thursday's meeting could come up with harsher measures than the draft, including banning frequency sharing between TUC and DTN indefinitely as well as prohibiting the consolidation of TUC and DTN indefinitely.
"These conditions would definitely create a barrier for the merger deal. It is likely that three commissioners would push for these conditions in the meeting on Oct 20," the source added.