Telecom Shakeup: Regulator reveals urgent MVNA, MVNE, MVNO policies to boost competition in Thailand

• 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.

For those who might have followed my endeavors, articles, postings, comments, workshops, meetings or speeches over the last many years, it is no secret that yours truly has spent days and nights strongly advocating for a change to the (lack of) policies that has existed, since the old leadership at the NBTC introduced MVNOs into the Thai market.

But even more so – for an independent Thai MVNA/MVNE with deep local market, MVNO knowledge and technology that can enable and support public/private enterprises and communities to operate their own mobile services to end-users or machines (M2M).

The announcement from the NBTC has brought this, one or three step closer to becoming reality.

The promotion of the right MVNA/MVNE setup in Thailand would reduce the MVNOs upfront investments, decrease the time needed to launch and operate.

The MVNA will host and negotiate wholesale pricing on behalf of multiple MVNOs and as such, the MVNOs will be able to benefit from economies of scale.

The MVNE will greatly reduce the initial Capex/Opex for the MVNOs, provide faster time to market and thereby quicker return of investment for the MVNOs because all agreements and the technical infrastructure is in place. An MVNE provides MVNOs with a cost-effective, scalable, and flexible solution for launching and managing their mobile services. By leveraging on the MVNE’s expertise and infrastructure, MVNOs can accelerate their time-to-market, lower their investment costs, reach financial break-even faster, focus on their core competencies, and deliver exceptional customer experiences.

In addition the right MVNA/MVNE will be able to guide and support the companies launching mobile services as a MVNO as a partner. Opposite today in Thailand where the MVNOs that have tried to launch – have been left on their own with no support and no control over their own business.

But… it has to be a MVNA/MVNE, who not only have deep MVNO knowledge but more importantly – knows the inside out of the Thai telecom market mesh and all its barriers to entry.