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Lawyer submits petition to Norwegian Embassy protesting planned Dtac-True merger

THURSDAY, OCTOBER 06, 2022

THE NATION

The True-Dtac deal has escalated to the national level. Lawyers have taken a letter to the Norwegian Embassy to send a message to the Norwegian government to pressure Telenor, Dtac’s parent, to issue an order to cancel the deal and investigate the operations of its Thai subsidiary to ensure it is not in conflict with the law and business ethics, and is transparent and grounded in the protection of service users’ rights.

It would be a confirmation of Norway’s dignity as a country in top global rankings for good corporate governance. The company is warned not to slip up on matters in violation of constitutional law.

Today (October 6, 2022), at 10.30am, Mr Somboon Bunyapirom, a lawyer, submitted a letter stating 3 earnestly requested concerns on the merger between True Corporation PCL (TRUE) and Total Access Communications PCL (DTAC) to the Norwegian embassy in Thailand to pass on and request Telenor to cancel the merger deal between TRUE and DTAC. The Norwegian government was also requested to consider whether the merger proposal of the two companies was in line with the Guiding Principles of the United Nations concerning business and human rights.

Mr Somboon said that this undertaking was unlawful, because it has failed to cover some steps of legal procedure. Distorted documents have been pertinent to the considerations, as well as interference in the deliberations of Independent Organisations under the Constitution (NBTC), and illegitimate acts such as:

1. The merger proposal of the two companies is in violation of the Telecommunications Business Act Section 21, in which is it stated that, “In the telecommunications business operation, other than being subject to the law on trade competition, the Commission shall prescribe specific measure according to the characteristics of the telecommunications business operation to prevent the licensee from carrying out any act that is monopolistic, or that reduces or limits the competition in the provision of telecommunications service in the following matters:

(1) subsidisation of services;
(2) holding in businesses of the same category of service;
(3) abuse of market power;
(4) anti-competition behavior;
(5) protection of small entrepreneurs.”

2. The merger between True Corporation PCL (TRUE) and Total Access Communications PCL (DTAC) will reduce the number of players in the telecom market, and will leave only two main providers. This will affect consumers, both in terms of developing service quality and setting prices. It will be an effective barrier to development and competition in the digital economy. This is an issue which Thailand and many other countries gave high priority in the modern world. At present, DTAC has a market share of 20% with 19.6 million subscribers, while TRUE has 34% or 32.2 million subscribers, and AIS has 46% or 44.1 million subscribers. It can be seen that the merger will result in only two major service providers remaining, because the merger will yield a combined market share of over half, and able to prescribe market prices and service quality. NBTC’s rushed conclusion on specific measures after the merger to control the merging companies is somewhat flaccid and careless, all the while that reports from the NBTC’s subcommittees agreed that the merger should not be approved.

3. He had additional concerns in the matter of freedom of communication for the general public, which must not be interfered with by private companies or the state. If the number of telecom service providers is reduced this can easily lead to interference, threats, limitations and lack of access to news or data. Most particularly in the present situation, spyware technology has been used to access data in the communications of activists and dissidents without permission. Private companies have a responsibility to protect human rights according to the United Nations Guiding Principles on Business and Human Rights (UNGPs), and its second pillar which emphasises that every business organization, large or small, or of any type, must be responsible for and show respect for human rights.

Mr Somboon reiterated that these three concerns are a matter of extreme urgency because it is expected that there will be a deciding resolution at a meeting of the NBTC’s board on October 12, 2022. Thus he would be extremely grateful to consider the Norwegian Embassy communicating with Telenor to give advice or suggestions to investigate the operations of its subsidiary in Thailand, so that they are not in violation of the law or business ethics, and are transparent, grounded in the protection of service users’ rights.
 

THE NATION