Thailand Telecom Shakeup: MVNOs to challenge the AIS and TRUE duopoly in 2024

NBTC unveils urgent MVNO policies to boost competition and slash telecom costs in Thailand. MVNA/MVNE and "One Region, One MVNO" aim to empower consumers and break market dominance.

Dr. Saran Boonbaichaiphruek, Chair of the National Broadcasting and Telecommunication Commission (NBTC), has revealed 9 urgent policies that will be accelerated in 2024, to increase and help facilitate options and services for the people in the country and break market dominance.

Among the 9 policies assigned, is the promotion of a Mobile Virtual Network Aggregator/Enabler (MVNA/MVNE) - to boost the launch of at least 7 regional Mobile Virtual Network Operators (MVNO) with reduced rates.

• The creation and promotion of a easy-to-connect MVNA/MVNE platform to enable and support MVNOs into the market.
• The acceleration and implementation of “One Region, One MVNO” by 2026, with the goal of adding at least seven regional MVNOs in the market to increase options and services for the people.
• Reduce rates of the regional MVNOs by at least 20% from the plans of the duopoly.
• Out-of-area rates and interregional fees that suits the cost of living in that region, with conditions that makes sure the two large mobile network operators cannot own more than 25% of shares in a regional MVNO.

”The policy for the NBTC office in 2024, Everyone must be more committed to working for the people. As a regulatory agency, I would like to see serious consumer protection regarding telecommunications service fees to reduce inequality in all groups, including facilitating various services for the people with the NBTC office being more involved," said Dr. Saran Boonbaichaiphruek, Chair of the NBTC.

Mobile service prices are expected to decline by at least 20% between now and 2026, as a result of promoting a new MVNA, MVNE, MVNO ecosystem.The announcement and intentions of the MVNA/MVNE/MVNO policies from the NBTC makes sense as consumers, associations and politicians are increasingly getting frustrated on the pricing, quality of service and lack of choice in the market which turned into a telecom duopoly when TRUE, the mobile operator of the local conglomerate CP All took over Telenor’s Thai unit DTAC, earlier this year.

The complaints and comments have not just targeted the two operators, AIS and TRUE but also the NBTC for its failure, as a regulator to listen to, react and protect the consumers.

The Thai telecom sector has been behind other markets in enabling policies and dealing with barriers to entry for new entries to the market, since the NBTC was introduced in 2011, resulting in significant market power and control to the three operators (now only two).

The former leadership at the NBTC passed the buck of dealing with TRUE’s takeover of DTAC to the new (current) leadership, as its first job when they took office in 2022.

Since then, the NBTC board has been split into two groups with the NBTC office, as a third wheel with major delays in decision making, regulation and administration of the market as a result, causing frustration among end-users, consumer associations and politicians, who have/are actively and increasingly voicing their opinions and frustrations with the merger and the NBTC.Interestingly, although there is disagreement on how to tackle the issues of the merger, merger conditions, pricing, declined network quality and lack of competition/choice – one thing they all seem to be united on - is the entry and promotion of MVNOs into the Thai market.

On October 20, NBTC Board Commissionaire regarding Telecom Business, Mr. Sompop Phuriwikraiphong said the important issue and policy for the NBTC, is to promote the creation of MVNOs.

But in the past, there has been problems from high cost of MVNOs purchasing access to spectrum or not getting any access at all from the private network operators. The NBTC therefore has to hasten to issue policies to encourage the launch of MVNOs, in order to create an alternative access to telecommunications services.The Senate's Committee on ICT & Telecommunications appointed a sub-committee to investigate and help solve the problems at the national telecom regulator (NBTC) in November and in the press release that followed it revealed 7 agenda items, among them: Accelerate the push for mobile virtual network operators (MVNO) to create more competition in the market.Earlier this month (December 15), Thailand’s Consumer Council held the live online event "Talk 2 Action" where they called for a handful of policies which included for the introduction and promotion of MVNOs into the market.On December 20, Sirikanya Tansakul, MP from the Move Forward Party, gave their take on the need for MVNOs in Thailand in a interview on Channel 3’s “News Talk”.Therefore, the announcement and intentions on urgent MVNA/MVNE/MVNO policies from the NBTC Chair makes sense and should be easy to implement, as there is a common understanding and urgency on that matter from the various parties.