Merger view between DTAC and True

⦁ Another angle, the merger between DTAC and True.

There has been a heated debate over the past week as a result of a merger between two major mobile operators, DTAC and True. There are concerns it will make it less of a choice for consumers, which is not a good thing for consumers. and the point of comparison with foreign countries that when there are major acquisitions must be considered by the state. Note that if an announcement comes out, it must be approved by the government agency first. However, the authors cannot comment on whether this merger is a good or bad thing. Because both of them provide official information that they are in the process of studying before applying for permission in the next step. If the results of the study and negotiations are consistent with both parties But the author intends to bring another aspect to present with analysis.

⦁ The reality of the mobile phone market in Thailand

after the change in telecommunications business from a monopoly concession system Come into free competition with the licensing supervision of both the frequency licenses available in NBTC Act 2010 and the telecommunications business license in the Business Act in 2001. The symbol of the major change is the auction of 2100 MHz spectrum in October 2012, so operators do not need to operate their business according to the obligations in Providing benefits to government agencies that seek substantial benefits under concession contracts Many of you who have passed through that time will see that before the auction the quality of service of the three is unacceptable. No need to use broadband services like today. A simple voice service alone can’t talk for a few minutes. There were frequent interruptions.

The main reason is the demand for more consumption. But the frequency allocation into the business sector has not been more than ten years. And even though the 2.1 MHz spectrum was allocated to state-owned enterprises nearly ten years before the auction. Thailand is still unable to adopt the widely accepted 3G technology. But after about 6-8 months of bidding, Thailand is recognized as the world’s fastest 2G to 3G country. However, the auction results have led to controversy. and fierce legal objections with allegations that “A low price auction This allows private sector operators to benefit from the damage of the government sector.”

The fundamental philosophy of spectrum auction design has been to take into account the competition in the spectrum auction. However, this must not destroy market competition after the more important spectrum auction. In line with the widely accepted international principles of this concept, spectrum auction organizers should not focus too much on the auction amount. By using spectrum auction as the sole source of income. But should take into account the development of the industry in the future. Therefore, when designing in the spectrum auction, there must be an opportunity for interested parties who have the possibility to use the spectrum to build a network for further service without Should be limited to the same large only

However, the auction in the broadcasting business television business and telecommunications Revenue is used as a measure of success in subsequent auctions. For example, digital TV auctions generate business awakening in the early stages but after that auction costs cannot continue, the business must be returned. channel and liquidation Subsequently, the auction of 900 MHz spectrum, the highest value in the world. Bring back the winner’s spectrum. including requesting a waiver of payment for the frequency in exchange for receiving 700 MHz spectrum in exchange But the burden of having to pay the frequency is still followed up to this day.

The point I would like to present here is that besides the number of service providers in the market that must be considered, The precursor consideration is the “frequency” that needs to be sufficient to meet the growing demand. For example, in Thailand, the demand for data consumption increases by 35% per year, including the frequency cost is not unnecessarily high and creates a burden. and the wall of those who want to become entrepreneurs

In addition, mergers in overseas telecommunications or network sharing for cost savings in the coming 5G era are happening. Such is the case in Malaysia, where the merger between Digi and Celcom includes DNB being the sole builder of the 3500 MHz 5G network. The Canadian case of the merger between Shaw and Roger Communications. or the Spanish case of a merger between Masmovil and Vodafone, as well as when Verizon and AT&T have gradually divested non-core investments in the US. or the sale of cell phone towers by operators both Optus and Telstra in Australia.

Factors in business climate change due to revenue generation as a connection provider (Connectivity) that focuses on revenue from the sale of phone minutes packages or the number of megabytes each month cannot be increased higher. But consumer demand is increasing. The trend of service delivery must lead to limitless connectivity. Price will be a control factor regardless of the number of market players because the network in The 5G era will be a fundamental factor in upgrading the country into the digital era. It will also be an important factor in creating inequality of people. For example, in the past when there was a lockdown of children. They were forced to study online. But many families do not have the ability to top up their children’s internet bills.

The problem is not because the network is not covered. It’s about access to services that have a wall to create disparities. Many investment projects through projects from both the government and the NBTC were unable to respond during the crisis. Soon, policies that see broadband as a matter of fundamental civil rights must be implemented cannot be dictated by market forces alone. The number of players in the market will not be an important issue in this regard, so the competition will move in the matter of digital transformation. in various business sectors Correct changes according to Global Supply Chain, service providers need to invest a lot. to enter this segment of the business from the original service provider of linkage basis but will have to enter into a digital service provider instead including there will be new players New roles in the 5G era

With the technology going into Cloud RAN, Cloud Core or Open RAN to bring competition in a new context. Most importantly, how do policy and regulatory makers have the understanding and vision to set this direction in time for change!!

Dr. Jesada Siwarak
Head of Government and Business Relations Ericsson Thailand