The two state telecom firms -- TOT Plc and CAT Telecom -- would still have the right to use the existing spectrum ranges until the expiry of terms after they merge, according to a resolution by the board of the National Broadcasting and Telecommunications Commission (NBTC).
The right of spectrum usage is specific to each company, awarded by the regulator and is non-transferable, as stated in the NBTC Act, Section 46.
The merger would happen under Section 153 of the Public Company Act of the Commerce Ministry, and the use of spectrum ranges would be unchanged as they are operated by TOT and CAT Telecom, despite the new organisational structure.
NBTC secretary-general Takorn Tantasith said the NBTC board concluded the merger would not conflict with Section 46 of the NBTC Act in terms of their existing spectrum usage ranges.
The NBTC board's move comes after the Digital Economy and Society (DE) Ministry sent a letter to the NBTC in September asking it to clarify the impact of the merger procedure, especially regarding the spectrum usage rights of both companies.
The ministry wants to accelerate the merger to salvage both companies after failing to create two new companies from TOT and CAT as previously planned.
The working panel handling the merger process for the DE Ministry is working on an action plan and wants to submit it for cabinet approval by the end of this year.
Two critical issues have concerned the two state enterprises -- their spectrum usage rights after the merger and the legal obligations of existing disputes between the two enterprises and between TOT and private companies, the latter with several cases in court.
The ministry's letter asked the NBTC board to clarify whether TOT and CAT can use their existing spectrum until 2025, after the merger implementation.
The working panel submitted the letter to the Office of the Attorney-General (OAG) to ask about the legal disputes, but have not yet received a response.
Previously, Pongthiti Pongsilamanee, acting president of TOT's labour union, sent urgent letters to the directors of both the State Enterprise Policy Commission and the NBTC on Oct 11 urging the NBTC and the OAG to settle concerns over issues that could pop up after the merger.
Mr Pongthiti expressed concerns over possible harm from legal challenges, even though the NBTC and the OAG support the merger.
Mr Takorn said the spectrum bands being used are the 470MHz, 2100MHz and 2300MHz by TOT, and 850MHz by CAT Telecom.
Sungvorn Poomtian, president of CAT Telecom's labour union, said it is a good sign the NBTC has already clarified the merger procedure.
TOT operates the 2300MHz band through a partnership deal with DTAC subsidiary DTAC TriNet (DTN) to jointly develop 4G service.
The deal lasts through 2025, with DTN agreeing to lease telecommunication equipment and domestic roaming service to launch the 4G LTE-TDD network on 60MHz using TOT's 2300MHz spectrum.
