The merged entity would control more than half of the total market at about 95.3 million subscribers
A merger between Thailand’s True and Telenor-owned dtac, first proposed in November 2021, has officially been approved by the boards of both companies. The merged entity would control more than half of the country’s total mobile market at about 95.3 million subscribers, making it the country’s largest mobile company.
EVP and Head of Telenor Asia Jorgen Arentz Rostrup commented previously that the combined company “will have scale to both invest in network quality and make technology advancements that meet the changing needs of Thai consumers and support Thailand’s digital growth.”
The merger would leave AIS, which controls 46% of the market, and National Telecom (NT) — formed through a 2021 merger of TOT and CAT Telecom — as the only two competitors. And while AIS has a strong hold on the market, NT has fewer than 1 million mobile subscribers, leading to concerns over the deal between True and dtac’s impact on market competition.
In an exchange with Mobile World Live (MWL), Bob Fox, chair of the Digital Economy and ICT Group of the Joint Foreign Chambers of Commerce in Thailand and European Association for Business and Commerce, said that the duopoly between True and dtac would result in market concentration of up to a 96% market share.
“We make no comment about any party involved, our concern is about the uncompetitive nature of the resulting market should such a plan, without conditions, come to pass,” said Fox. “We would urge all parties including regulatory agencies to consider the need for Thailand to be competitive in this important sector which underpins the digital economy.”
Despite such concerns, reports have emerged that suggest the deal, which still requires shareholder and regulatory approval, will receive speedy approval by Thai authorities. Telenor, in fact, believes the merger will be completed this year.
In similar news, Telenor merged its Malaysian operation Digi with Axiata Group’s Celcom earlier this year.
