On November 10, Thailand's National Broadcasting and Telecommunications Commission (NBTC) decided to approve the merger of Thailand's top mobile operator Advanced Info Service (AIS) with local competitors.。

The decision will reportedly allow AIS to charge 32.4 billion baht (about 8.$9.9 billion) for 100% of Triple T Broadband (3BB) and 19% of the Jasmine Broadband Internet Infrastructure Fund (JASIF), owner of 3BB's fiber optic assets。

Holding on to Thailand's Local Market Prospects AIS Monopoly Tendency Causes Controversy

Due to the slow growth of mobile services and the large amount of capital required to deploy fifth-generation (5G) networks, the global telecommunications industry has consolidated。Research firm Mordor Intelligence expects Thailand's $20.7 billion (2023) market to grow to just $25 billion by 2028.。

According to Fitch Ratings, Thailand's fixed broadband market has good growth prospects, and its penetration rate is still less than 60% as of 2021。Mordor's analysts wrote: "Demand for mobile, fixed broadband and OTT services hits new highs after the new crown epidemic.。"

AIS has long been Thailand's top mobile network provider, with its parent company Intouch, founded by the billionaire Thaksin Shinawatra family and now controlled by Thailand's richest man, Gulf Energy CEO Sarath Ratanavadi.。

The merger gives AIS access to 3BB's upstream broadband market with 4.69 million subscribers, replacing True, which has 3.8 million fixed broadband subscribers, as Thailand's largest fixed broadband operator.。Thailand's fixed broadband market will shrink from four operators to three, 80% of the market share will be concentrated in the hands of True and AIS, Thailand's state-owned National Telecommunications (NT) will account for less than 20%。As a result, the country's broadband market may form a de facto duopoly。

In this context, some opponents have warned that the continued implementation of the agreement will adversely affect a wide range of customers, as the lack of competition may lead to higher prices.。

Consumer groups and opposition parties have also criticised the NBTC's indifference to industry mergers.。Kadima deputy spokesman Pakamon Noon-anan called on the NBTC to "fulfill its duty to protect the interests of the Thai people."。She said: "Under Thailand's telecommunications law, the regulator must develop measures to prevent monopolistic or unfair competition and has the power to reject the merger if necessary.。"

Thailand's dire business monopoly situation was a key topic in general elections earlier this year, with Kadima promising to lift its stranglehold on the market。Despite winning a majority of seats in the May general election, he was sidelined by his initiative to "de-monopolize the Thai economy."。

NBTC supervision is questioned whether AIS can effectively fulfill its responsibilities.？

NBTC said earlier that they would deal with the AIS-3BB deal as they did with the merger of DTAC and True last year.。NBTC said it can only recognize such transactions and has no authority to approve or reject them, and that the merger has allowed True and DTAC to surpass AIS in mobile network market share.。

NBTCSupinya Klangnarong, a former commissioner, was skeptical, "The previous government approved the True-DTAC deal, the current government approved the AIS deal.。But if the NBTC abuses its power, who can consumers rely on?？"

In response to questions, the NBTC board of directors said: "before making a decision, NBTC has been thoroughly studied and carefully considered, we are fully aware of the impact of the merger on the public.。As a result, the regulator has placed conditions on the AIS in areas such as price caps and quality control:

• AIS offers only broadband subscriptions and bundles broadband with services from its mobile business。
• AIS must maintain pre-merger fixed broadband package prices for at least 5 years while maintaining quality of service。
• AIS must allow other small businesses to compete freely and allow them to lease their networks。
• AIS needs to invest at least 10 billion baht (about 2.$8.6 billion) to expand fixed and fixed wireless broadband services to unserved areas。

In fact, it remains to be seen whether AIS will actually bundle its fixed and mobile broadband services.。The company had already announced its plans to merge with 3BB in July last year, and while the NBTC approved the merger in principle, it did not formally consider it as part of the agenda until last week and has yet to propose any market remedies to maintain fair competition and protect consumers.。

Last week, the AIS said it would use 3BB infrastructure to boost broadband access to more than 13 million homes as part of an overall strategy for network development.。However, the plan does not mention anything related to rural coverage in unserved areas.。

AIS currently aims to complete the procedures and paperwork for the merger, including the loan to cover the acquisition costs, by November 15, according to relevant sources.。