The planned takeover of Triple T Broadband (TTTBB) by Advanced Info Service (AIS) still awaits the nod of the National Broadcasting and Telecommunications Commission (NBTC) board, with a meeting scheduled for Oct 25 as all key documents for the determination were sent to the NBTC office as of Oct 14.
One crucial document is a study by SCF Associates on the economic effects of the deal.
Trairat Viriyasirikul, acting secretary-general of the NBTC, said the office already received the second part of the study.
The regulator hired SCF Associates as an international advisor to conduct the study on the economic effects of the deal.
The study is divided into several parts. Two parts that cover essential matters are deemed as sufficient to help the NBTC board consider the deal, he said.
Mr Trairat said the NBTC office will propose all the related study results to the board on Oct 25.
A source on the NBTC board who requested anonymity told the Bangkok Post SCF Associates was also hired by the NBTC as an advisor last year to study the merger of True Corporation and Total Access Communication (DTAC).
Last year the NBTC board passed a resolution on the True-DTAC merger after SCF Associates forwarded the first two parts of its study to the NBTC office. The first two parts covered summary information and important figures in the deal.
A CONSIDERED QUESTION
TTTBB provides broadband internet service under the 3BB brand. The takeover has been listed for consideration on the NBTC board agenda for months, but the board has not begun consideration.
The 2010 NBTC law requires the board to consider a listed agenda item within 15 days after taking the agenda into consideration. The board can extend the consideration period of the agenda if needed, but the postponement must be done through a formal resolution.
During previous meetings, the board verbally decided to skip considering the agenda.
Some NBTC commissioners said they would prefer to wait for the relevant parts of the SCF study before considering the deal.
The NBTC source said it is hard to predict what will happen at the board meeting on Oct 25.
"It is up to the majority of the NBTC board, which now has the full seven members," said the source.
Four commissioners routinely voice their opinions as a united group, comprising Suphat Suphachalasai, AM Thanapant Raichareon, Pirongrong Ramasoota and Sompob Purivikraipong.
PREVIOUS MOVES
The NBTC set up four subcommittees to examine the impacts of the deal, responsible for studying the economic effects, technical effects, legal effects and consumer impact.
The panels dealing with the legal, technical and consumer impacts have finished their studies.
The subcommittee on economic effects previously asked the board to extend its deadline until Aug 22, which was granted.
The NBTC board earlier approved in principle guidelines for the purchase of 3BB by AIS and its investment in Jasmine Broadband Internet Infrastructure Fund (JASIF).
AIS is committed to acquiring a 100% stake of 3BB and acquiring a 19% holding in JASIF, even though JASIF shareholders rejected the proposed amendments to optical fibre cable rental agreements between TTTBB and JASIF. AIS's board of directors said opportunities remain with this deal.
Several industry veterans, including former NBTC commissioner Prawit Leesathapornwongsa, believe approval is likely from the board, though remedy measures could govern the deal.
The NBTC should govern the affiliated companies of the deal to maintain competition by providing enough packages for only fixed broadband internet service to consumers, instead of focusing on bundled broadband and mobile services, said Mr Prawit.
The local broadband internet market is competitive with four providers: True Corporation, 3BB, AIS and National Telecom.
Many smaller providers tap specific customer segments, such as corporations and the enterprise sector.
The market still has room for growth, as broadband internet penetration for households is less than 60% nationwide. This rate is low compared with 80% to 100% of the population in developed countries.
NBTC chairman Dr Sarana Boonbaichaiyapruck recently said the board has no authority to approve or reject the deal, only to acknowledge it and issue remedies, similar to its approach to the True-DTAC merger.
However, NBTC commissioner Mr Suphat recently said he believes the board does have the authority to approve or reject the deal.