The takeover deal of Triple T Broadband (3BB) by Advanced Info Service (AIS) is stuck in limbo as the National Broadcasting and Telecommunications Commission (NBTC) board continues to decline considering the deal on its agenda.
The deal was listed as an agenda item for the board's consideration in the past two board meetings. The 2010 NBTC law requires the board to consider a listed agenda item within 15 days after taking the agenda into consideration.
Some NBTC commissioners said they prefer to wait for an international advisor's study on the economic effects of the deal before considering the deal. This portion of the study is expected to be completed and sent to the NBTC office by mid-October.
A source on the NBTC board who requested anonymity told the Bangkok Post the delay in considering the deal at the past two meetings might not comply with practices under the 2010 NBTC law.
The board could make any formal resolution on the agenda but declined to do so. The source said the NBTC board during the past two meetings "verbally" decided to skip considering the agenda.
The NBTC board's next meeting is slated for Oct 4 when it is expected to discuss the legal aspects of the deal.
NBTC chairman Dr Sarana Boonbaichaiyapruck recently said the board has no authority to approve or disapprove the 3BB deal but could only acknowledge the deal and issue remedies, the same resolution it earlier made in the case of the True Corporation-Total Access Communication (DTAC) merger.
NBTC commissioner Suphat Suphachalasai recently said he still believes the board has the authority to approve or disapprove the 3BB deal.
The NBTC board consisting of five commissioners on Oct 20 last year voted 3-2 that it had no authority to approve or disapprove the True-DTAC merger deal, then acknowledged the deal and issued remedies.
Two commissioners, including Mr Suphat and Pirongrong Ramasoota, voted that the board held responsibility under related regulations to approve or disapprove the True-DTAC merger.
Regarding the 3BB deal, the NBTC source said it depends on the majority of the NBTC board which now comprises the full quorum of seven members. Four commissioners who often voice opinions in the same direction include Mr Suphat, Mrs Pirongrong, AM Thanapant Raicharoen and Sompop Purivigraipong.
The NBTC board set up four subcommittees to scrutinise the deal and each is responsible for the study of economic effects, technical effects, legal effects and consumer impact. The subcommittees dealing with the legal, technical and consumer impacts have already finished their studies.
The NBTC board earlier approved in principle guidelines for AIS to take over fixed broadband service provider 3BB and its plan to invest in Jasmine Broadband Internet Infrastructure Fund (JASIF). The owner of 3BB is Triple T Broadband (TTTBB).
AIS is committed to acquiring a 100% stake of 3BB and acquiring a 19% holding in JASIF, even though JASIF shareholders rejected AIS's proposed amendments to optical fibre cable rental agreements between TTTBB and JASIF.
Prawit Leesathapornwongsa, head of the NBTC subcommittee studying the impact of the deal on consumers, previously said the takeover of 3BB by AIS is significantly different from the True-DTAC merger deal.
He said he believes the NBTC board would give the nod to the takeover and the board would issue remedy measures governing the deal, like in the case of the True-DTAC merger, which was completed in March.
The four big players in the fixed broadband service market are True, 3BB, AIS and National Telecom.
Previously, at an NBTC hearing on the deal's impact on consumers, Chatra Kamsaeng, director of The 101 World public policy think tank, said True has a 37.3 % market share for fixed broadband services followed by 3BB at 29.4%, National Telecom at 15.9%, AIS at 14.3% and others with 3.1%.
The takeover deal of 3BB by AIS would create a new leader with a 43.7% market share that would pave the way for the new leader to benefit from the fixed broadband internet-mobile phone service convergence strategy if it wants to capitalise on a better revenue stream.
However, the deal may not have a broad impact on consumers. Mr Chatra said in areas where AIS and 3BB mainly provide services such as metropolitan areas, the service tariff may increase between 9.5% and 22.9% from current prices.
On the other hand, in areas where AIS and 3BB do not provide fixed broadband service or there are other operators in the market, the deal is unlikely to have much impact on consumers.