M&A rules likely ready next quarter

The two sets of regulations are aimed giving the NTC stronger power to regulate the market after it awards new licences, including the much-awaited 3G-2.1GHz wireless broadband spectrum licences, NTC member Sudharma Yoonaidharma said yesterday at the public hearing on the draft M&A regulations.

According to the draft, a licence holder planning to buy more than 30 per cent of the shares of another licence holder will have to seek the NTC's permission to do so. This covers both direct and indirect share ownership.

Any M&A that will lead to market dominance will be prohibited, except for reason of national and economic security, or telecom industry development.

Some of those at yesterday's hearing said the M&A regulations could affect CAT Telecom and TOT, should they want to convert their private telecom concessions into shares in private concession holders.

In a related matter, the Senate on Monday appointed four new NTC members out of eight candidates for the posts.

They are current NTC secretary-general Suranan Wongvithaya-kamjorn, former TOT executive Natee Sukonrat, former Budget Bureau director Bandhoon Supakavanich, and the chairman of the state committee drafting cable-TV regulations, Pana Thongmee-akom.

They join the three current commissioners: Sudharma, Prasit Prapinmongkolkarn and Suchart Suchatvejapoom.

All seven will have to select a new NTC chairman as the incumbent, Choochart Promphrasid, is one of the three commissioners balloted out in 2007 in accordance with the frequency allocation law. The law requires three commissioners to be balloted out after their first three years in office.

The seven commissioners have to decide whether to select a chairman from the existing three NTC members or from the four new members. If they opt for the former, this means they will see the new chairman and the other two existing commissioners leave the posts next year when their six-year term ends.

Newcomers Natee and Pana yesterday said they hoped the NTC would be able to grant 3G licences within three months.