The chairman of Thailand's National Broadcasting and Telecommunications Commission (NBTC), Dr Sarana Boonbaichaiyapruck, has announced a plan to increase the number of Mobile Virtual Network Operators (MVNOs) in the country.
This move is poised to introduce heightened competition in the telecommunications sector, fostering better service offerings, competitive pricing, and improved overall quality for consumers. The increased presence of MVNOs often sparks innovation, encouraging both new and established players to adopt novel approaches and services, thereby advancing the technological landscape.
Beyond consumer benefits, the entry of more MVNOs contributes to market growth, attracting investments, generating economic activity, and potentially creating employment opportunities. Furthermore, the initiative signals a favorable regulatory environment that supports a competitive market, ensuring fairness and safeguarding the interests of operators and consumers alike.
It is anticipated that this strategic move will not only enhance the connectivity and infrastructure of the telecommunications sector but also position Thailand as a hub for technological advancements in mobile communication.
MVNO Establishment
The plan, called One Region, One Mobile Virtual Network Operator, aims to establish four additional MVNOs by 2026, in addition to the three existing mobile phone operators in Thailand. In addition to this, the NBTC also intends to provide free access to state digital services across the country by 2026. This means that all Thai citizens will be able to access basic state services without incurring any internet charges on their mobile tariffs.
The NBTC chairman has stated that this initiative will be implemented in collaboration with mobile phone operators. The NBTC office plans to begin implementing both the One Region, One MVNO scheme and the free government digital services policies this year.
MVNO Trepidation
However, it remains uncertain whether there will be enough market demand to sustain these new MVNOs in competition with True Corporation, Advanced Info Service (AIS), and National Telecom (NT). The Bangkok Post highlighted that AIS and True Corp currently account for over 96% of the total subscribers in the market.
Furthermore, it is unclear whether major operators will be willing to lease their network capacity to MVNOs at a low fee. Nevertheless, the proposed regulations by the NBTC suggest that they may have limited options. However, major mobile operators will be allowed to hold a maximum of 25% share in regional MVNOs. While MVNOs may face challenges in competing with larger rivals in the mass market, there could be potential business opportunities for them in the 5G private network market.
Currently, The WhiteSpace Limited, the owner of the Penguin SIM brand, is the only MVNO in Thailand. According to the Bangkok Post, it has a subscriber base of just over 40,000 in a country with a population of nearly 70 million.
