Thai telecom regulator invites DTAC and True for meetings about potential merger

[webfact]

 

Representatives of True Corporation and the Total Access Communication Company have been separately invited by the Office of the National Broadcasting and Telecommunications Commission (NBTC), Thailand’s telecom regulator, to clarify media reports of a potential merger of True and DTAC.

 

Informed sources said that executives of Total Access Communications are scheduled to meet with the regulatory body on Monday, followed by True Corp on the following day.

 

According to the sources, the NBTC would like clarifications from both mobile phone service providers about the implications of the reported merger on the telecom industry in Thailand and whether it would be in compliance with antitrust regulations, to prevent complete control of the market by a single player.

 

Full story: https://www.thaipbsworld.com/thai-telecom-regulator-invites-dtac-and-true-for-meetings-about-potential-merger/

 

-- © Copyright Thai PBS 2021-11-22

 

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[realfunster]

4 hours ago, webfact said:

According to the sources, the NBTC would like clarifications from both mobile phone service providers about the implications of the reported merger on the telecom industry in Thailand and whether it would be in compliance with antitrust regulations, to prevent complete control of the market by a single player.

 

All of that didn’t make a blind bit of difference when CP/True bought out Tesco, markedly reducing consumer choice. I don’t hold out much hope that this will get a robust antitrust review either. I like the way they are calling it a “merger”, I suspect the truth is somewhat different. 

 

Just put CP/True in charge of the country, it would save time. 

[ChrisY1]

Regulation doens not apply to these 2 telecom giants....they tell the regulator what to do!

[hotchilli]

5 hours ago, webfact said:

According to the sources, the NBTC would like clarifications from both mobile phone service providers about the implications of the reported merger on the telecom industry in Thailand and whether it would be in compliance with antitrust regulations, to prevent complete control of the market by a single player.

When has that ever bothered Thailand... monopolies are the norm.

[hotchilli]

55 minutes ago, realfunster said:

 

All of that didn’t make a blind bit of difference when CP/True bought out Tesco, markedly reducing consumer choice. I don’t hold out much hope that this will get a robust antitrust review either. I like the way they are calling it a “merger”, I suspect the truth is somewhat different. 

 

Just put CP/True in charge of the country, it would save time. 

They already are.

[mikebell]

Thailand society is too polite to encourage competition.  There are lots of unofficial secret mergers which fix the prices to the detriment of the customer.  

[mtls2005]

After some hand-wringing, and jibber-jabber about competition, this will go through I would think.

 

The country has a long history of granting sole proprietorships - yes occasionally they grant two in an industry/sector, it is a foundation of the thai social contract.

 

[bokningar]

Thailand need more competition on the telecom market not less IMHO.

 

A HIGHLY CONCENTRATED MARKET - LACKING COMPETITION

 

The three operators, AIS, TRUE and DTAC – enjoy complete market dominance with a combined 96.39% market share of the 94.32 million total mobile connections in the market. The Herfindahl-Hirschman Index (HHI) is 3,390 – showing a highly concentrated market lacking competition.

 

https://www.yozzo.com/insights/thailands-mobile-market-end-of-year-2020/

[wordchild]

It may be allowed through, TIT after all, but it certainly shouldn't be allowed to happen.

To take the market from 3 players (already tight by global standards) down to 2, will completely alter the competitive dynamics and not in favour of the consumer. Thai consumers will likely face significantly higher mobile costs in the years to come.

I cannot think of another major Country that would allow this to happen to such an important market for consumers.

Of course lots of promises will be made but basically the new combination (True/DTAC)  plus also AIS will have a licence to print money for years to come benefiting their shareholders significantly.

Is this about favours being returned?

Frankly the whole think smells!   

Edited November 22, 2021 by wordchild

[rtco]

"Thai telecom regulator invites DTAC and True for meetings about potential merger"

 

... should read

 

"Thai telecom regulator invites DTAC and True for meetings about potential brown envelopes"

 

[wordchild]

The only way this would even begin to make sense is if the Govt/Regulator insisted that the new combo give up a chunk of spectrum (at a low price) to encourage a new competitor (eg 3BB) to enter the market. 

[Eric Loh]

59 minutes ago, bokningar said:

Thailand need more competition on the telecom market not less IMHO.

 

A HIGHLY CONCENTRATED MARKET - LACKING COMPETITION

 

The three operators, AIS, TRUE and DTAC – enjoy complete market dominance with a combined 96.39% market share of the 94.32 million total mobile connections in the market. The Herfindahl-Hirschman Index (HHI) is 3,390 – showing a highly concentrated market lacking competition.

 

https://www.yozzo.com/insights/thailands-mobile-market-end-of-year-2020/

Compare with 5 telecommuncation operators in Malaysia and 11 in Singapore, Thailand lack competition at the expense of the consumers.  

[mtls2005]

1 hour ago, wordchild said:

The only way this would even begin to make sense is if the Govt/Regulator insisted that the new combo give up a chunk of spectrum (at a low price) to encourage a new competitor (eg 3BB) to enter the market. 

 

Easier to mandate a percentage of current spectrum owned by AIS and TrueMove/DTAC, be reserved for MVNOs and low prices, at least for a five-ten year period. And that MVNOs are incentivized to gain some traction.

 

A third (assuming this merger goes forward) provider will not be able to get off the ground, IMO. CAPEX is massive.

 

Some background, https://www.yozzo.com/insights/looking-to-launch-a-mvno-in-thailand-heres-some-useful-information/

 

MVNO's had some early success, but for a variety of reasons have not fared well in the past few years. 

 

The government made a ton of money auctioning spectrum at quite high prices, and service providers had to borrow heavily to secure the spectrum.

 

 

 

DTAC Corporate may also be constrained from operating in countries where they may be asked to cooperate with the government to monitor protesters? DTAC had to leave Myanmar for this reason.

 

 

 

 

Edited November 22, 2021 by mtls2005

[Ginner]

10 hours ago, realfunster said:

 

All of that didn’t make a blind bit of difference when CP/True bought out Tesco, markedly reducing consumer choice. I don’t hold out much hope that this will get a robust antitrust review either. I like the way they are calling it a “merger”, I suspect the truth is somewhat different. 

 

Just put CP/True in charge of the country, it would save time. 

You can already see the increases in Lotus, some items up by B40 and the " FRESH" produce is days old, Green potatoes, black tomatoes.