Looking to launch a MVNO in Thailand? Here’s some useful information

The three private operators, AIS, TRUE and DTAC – enjoy complete market dominance with a combined 97% market share of the 91.1 million total mobile connections in the market. The Herfindahl-Hirschman Index (HHI) is 3,390 – showing a highly concentrated market lacking competition.

Table 1: Reference Rate for 3G/4G services on 900 MHz, 1800 MHz and 2100 MHz

Voice

In 2021, the average service fee for voice service of the four MVNOs was THB 0.77 per minute, with Redone having the lowest average service fee at THB 0.62 per minute while Penguin SIM had the highest average service rate with THB 0.90 per minute.

Penguin SIM’s voice fee is THB 0.08 higher than the maximum retail pricing cap set by the NBTC on 3G (max THB 0.82) and THB 0.21 higher than maximum retail pricing cap on 4G (max THB 0.67).

Mobile data

The average service fee for mobile data service of the four MVNOs was THB 0.24 per MB with Redone (*Postpaid) having the lowest average service fee at THB 0.05 per MB while Penguin SIM (Prepaid) had the highest average service rate with THB 0.45 per MB.

Penguin SIM’s mobile data fee is THB 0.17 higher than the maximum retail pricing cap set by the NBTC on 3G (max THB 0.28) and THB 0.19 higher than maximum retail pricing cap on 4G (max THB 0.26).

SMS

For SMS service, i-Kool3G had the lowest average fee with THB 1.75 per SMS while Penguin SIM had the highest average service fee. Redone does not offer SMS promotion as part of its main postpaid package. The average service fee for SMS service of the four MVNOs was THB 1.85 per SMS.

Penguin SIM’s SMS fee is THB 0.67 higher than the maximum retail pricing cap set by the NBTC on 3G (max THB 1.33) and THB 0.85 higher than maximum retail pricing cap on 4G (max THB 1.15).

Feels SMS fee is THB 0.47 higher than the maximum retail pricing cap on 3G (max THB 1.33) and THB 0.65 higher than maximum retail pricing cap on 4G (max THB 1.15).

i-Kool3G SMS fee is THB 0.42 higher than the maximum retail pricing cap on 3G (max THB 1.33)

*Note that the MVNO Redone is postpaid only while the other MVNOs are prepaid only. In addition the wholesale agreement Redone has with its host operator (NT) is based on revenue sharing.

** Note that the blended average pricing from NBTC on the MNOs does not included the sub-brand priding from AIS’ sub-brand “GOMO” and DTAC’s sub-brand “Finnmobile” which it should, as it part of the pricing and lowers the blended average pricing significantly for the MNOs

Table 2: MVNOs Average Service Fee Pricing 2021

In December 2017, the NBTC announced a new fee scheme for mobile network operators (MNOs) and mobile virtual network operators (MVNOs) where Annual Revenue determines the fee rate as follows:

• Numbering fee: Mobile operators and MVNOs in Thailand are currently paying the regulator a mobile number fee of:

THB 1.00 per mobile number per month (First number allocation)

THB 2.00 per mobile number per month (Additional allocation)

The NBTC meeting No. 17/2019 on 4 October 2019, suggest a new numbering fee structure to be set at the rate of: THB 1.62 per number per month.

For those who already had mobile numbers allocated, and holds no more than 5 million numbers (as of the effective date of announcement), the NBTC suggest a two year transition period with a fee of THB 1.00 / number / month, and THB 1.62 / number/ month on additional allocation.

• MVNO License request processing fee THB 5,000 + 7% VAT = THB 5,350.
• Mobile operators (not MVNOs) also pays 2.5% of revenue as Universal Service Obligation (USO) fee.

In 2016 the NBTC issued the: Notification regarding the Reference Interconnection Charges B.E. 2557 (2014), which applies the calculation method, according to the Notification regarding the standard method for Calculating Interconnection Charges (IC).

The NBTC updated the rates on December 17, 2019. The new rates have been added in table below, and will be effective from January 2020.

UPDATE: The NBTC has called for a public hearing on the its draft regarding the calculation of telecommunication network interconnection rates for 2021. The period of public hearing is from 27 May – 30 June 2021. More information available here

TOT operates 3G/4G services on 2100 MHz where it has 15 MHz bandwidth, and on 2300 MHz (4G LTE-TDD) where it has 65 MHz bandwidth. At the auction in February 2020, TOT secured 400MHz bandwidth on the 26GHz spectrum.

AIS has partnered with TOT for renting capacity on TOT’s 2100 MHz spectrum. As part of the agreement TOT obtained more base stations, and now has more than 21.500 base stations providing 3G and 4G on 2100 MHz.

DTAC has also partnered with TOT to roll-out its own and TOT’s 4G TDD LTE on TOT’s 2300 MHz with 17.400 base stations end of 2019.

CAT Telecom operates 3G services on 850 MHz where it has 15 MHz bandwidth, which is shared with TRUE, who via their subsidiaries use a MVNO setup, to rent most of CAT Telecom’s capacity.

CAT Telecom also have access to TRUE’s spectrum for providing 4G services – however this agreement is only for CAT Telecom’s own retail service (MY CAT) and not available to CAT Telecom’s MVNO’s.

At the auction in February 2020, CAT Telecom secured two slots of 2×5 MHz on the 700MHz spectrum

Spectrum and (bandwidth) held by the mobile network operators in Thailand as of February 2020

• AIS spectrum: 700 MHz (30MHz), 900 MHz (20MHz), 1800 MHz (40MHz), 2100 MHz (*60MHz), 2600 MHz (100MHz), 26 GHz (1200MHz). Total bandwidth: 1450 MHz
  
• TRUE spectrum: 700 MHz (20MHz), 850 MHz (**30MHz), 900 MHz (20MHz), 1800 MHz (30MHz), 2100 MHz (30MHz), 2600 MHz (90MHz), 26 GHz (800MHz). Total bandwidth: 1020 MHz
• DTAC spectrum: 700 MHz (20MHz), 900 MHz (10MHz), 1800 MHz (10MHz), 2100 MHz (30MHz), 2300MHz (***60MHz), 26 GHz (200MHz). Total bandwidth: 330 MHz
• TOT spectrum: 2100 MHz (30MHz), 2300 MHz (60MHz), 26 GHz (400MHz). Total bandwidth: 490 MHz
• CAT spectrum: 700 MHz (20MHz), 850 MHz (30MHz). Total bandwidth: 50 MHz

*rental of capacity on TOT’s 2100 MHz.
**rental of capacity on CAT Telecom’s 850 MHz.
***rental of capacity on TOT’s 2300 MHz (4G TDD LTE)

The National Broadcasting and Telecommunications Commission (NBTC) approved the 920-925 MHz spectrum to be used for the Internet of Things (IoT) in July 2017.

Although the spectrum is unlicensed, Internet of Things (IoT) service provider must obtain one of two license –  see License for Internet of Things (IoT) Service Providers, below.

SIM registration is mandatory in Thailand via a biometric verification system (face recognition or a fingerprint verification)., and the costs for the NBTC approved scanners is on the MVNO/operator.

The selling and registration of SIM cards online is not allowed. Customers have to obtain the SIM card and register in person.

Each individual subscriber can obtain a maximum of five SIM cards from each of the mobile phone service providers. If the subscriber wants to buy more than five SIM cards, the service provider is required to report the purchases to the NBTC office.

Until recently, when an MVNO applied for mobile numbers for the first time, it was allocated a maximum 200,000 by the NBTC. It could apply for additional numbers only after at least 70% of the original allocation was sold out. NBTC has increased the initial allocation lot for MVNOs to 500,000.

Minimum of 30 days extension on top-up and can be accumulated for 365 days.

The operators announce to their customers that they reserve the right to cancel the service if the customers does not top-up, make or receive calls for 3 months.

NBTC’s holding period for inactive prepaid SIM cards require the MVNOs and operators to keep inactive SIM cards open for a minimum of 90 days for receiving incoming calls. After the initial 90 days, the MVNOs/operators are required to hold the SIMs and “clean” them for another 90 days before reselling them.

Note, that the MVNO/operator still have to pay the number fee of THB 2.00 per month/per number to the NBTC for the 6 months (180 days) the SIM card/number is in the holding period.

On the 3rd of August 2009, Thailand’s National Telecommunications Commission (NTC) passed the Regulation on Mobile Number Portability (“MNP”), which was announced in the Royal Gazette and became effective the following day.

The Regulation allow customers to switch between mobile operators including MVNOs, while keeping their existing number.

To facilitate this, the mobile operators, Advanced Info Service Pcl. (AIS), Total Access Communication Pcl. (DTAC), True Corp Pcl. (TrueMove), as well as the two state-owned mobile operators TOT Pcl. and CAT Telecom Pcl. invested in a clearing house operating as a joint consortium with a shareholding of 20% each.

Clearing House for Number Portability Co., Ltd. has a registered capital of THB 2,000,000, divided into 20,000 ordinary shares with a par value of THB 100 per share. Details of shareholders are as follow:

1. Advanced Info Service Plc. 20% shares
2. Total Access Communication Plc. 20% shares
3. True Move Co., Ltd. 20% shares
4. CAT Telecom Plc. 20% shares
5. TOT Plc. 20% shares

The new MNP system in place today, requires only one day to activate. The customer dials *151* plus their ID card or passport number. A code is sent and confirms the request was received.

Denying Mobile Number Portability

The operators may only deny the application to switch based on the following grounds:

• If the number was illegally acquired;
• For national security reasons;
• If the number is subject to a legal procedure, seizure or any lawful order.

The number must be registered under the same name as the person wishing to transfer. Prepaid customers should use up their account balance as credit and validity remaining are not transferable.

For most subscribers, their mobile number is akin to their identity, and being able to keep the number has made switching operators easy. To fight migration of subscribers, operators have to improve their service offering, encouraging a new level of competitiveness among operators.

The Telecommunications Business Act of 2001 laid down the rules for Thailand’s telecommunications industry by requiring telecoms operators to obtain a license from the National Broadcasting and Telecommunications Commission (NBTC).

The Act classified telecommunication licenses into the three following categories.

Type One License: Being a license granted to the telecommunications business operator who operates without his or her own network for telecommunications services which are deemed appropriate to be fully liberalized.

The Commission shall grant a License once notified by a person who intends to operate such business.

Note! MVNOs are today under Type one licenses.

Type Two License: being a license granted to the telecommunications business operator who operates with or without his or her own network for telecommunications services intended for a limited group of people, or services with no significant impacts on free and fair competition or on public interest and consumers.

The Commission shall grant a License once a person who intends to operate such business has completely fulfilled the standard criteria prescribed in advance in notification of the Commission.

Type Three License: being a license granted to the telecommunications business operator who operates with his or her own network for telecommunications services intended for general public, or services which may cause a significant impact on free and fair competition or on public interest, or a service which requires special consumer protection.

A person who intends to operate such business can commence the operation only after he or she is approved and granted a license by the Commission.

Although the 920-925 MHz spectrum is unlicensed, IoT service provider must obtain one of two telecommunications license:

Type One License: Those who provide telecommunication services without their own network (Non-facility-based service provider) must have a telecommunications license type one.

Type Three License: Those who provide telecom-based service providers (Facility-based service providers) must have a telecommunications license type three.

In 2001, foreigners were not permitted to apply for type-two or three licenses under Thailand’s Foreign Business Act (FBA).

The applicant applying for type two and type three licenses had to be an organizations where Thai nationals held at least 75% shares and at least three quarters of the applicant’s firm directors, and the person authorized to sign any binding commitments as a representation of the applicant firm had to be Thai nationals.

The 2001 Act was amended in 2006 under the supervision of Prime Minister Thaksin Shinawatra to allow foreigners to own a larger holding in a Thai telecommunications business.

The 2006 amendments repealed all the additional requirements of an applicant of type-two and type-three licenses, stating foreigners can now hold up to 49% in a telecommunications operator of type-two or type-three; no restrictions on the number of their foreign directors’ representation; and the authorized person signing binding commitments as a representation of the applicant firm can be a foreigner.

The NBTC announced the Notification Regarding Mobile Virtual Networks Service B.E. 2556 (2013) to promote free and fair competition as well as to promote market entry for small entrant in order to escalate mobile service competition and provide service alternatives to customers.

The Notification requires the licensee (Type III mobile operators and mobile operators under concessions) who is a wholesaler to treat Mobile Network Operators (MVNOs) on a fair, reasonable and non-discriminatory basis.

The rates of the services can be determined by the agreement between the wholesaler and MVNOs on a fair, reasonable, and non-discriminatory basis, as well as must be reasonable comparing with the retail rates paid by the wholesaler’s customers.

In addition, this Notification has also prescribed criteria and procedures for contract negotiation and dispute resolution where an agreement cannot be reached among the licensees.

NBTC Announcement in English versions – Recorded date : 19/01/2023

• NBTC announcement on specifying the nature and type of telecommunications business that requires a telecommunications business license. (English version).
  NBTC Announcement on Criteria and Methods for Licensing Telecommunications Business Operations (English version)
  NBTC announcement regarding telecommunications business license fees (English version)
  NBTC announcement regarding telecommunications business license fees (No. 2) (English version)

NBTC’s guideline on types of MVNO and which elements the MVNO is allowed. The NBTC categorizes MVNO types as Thin and Medium. Note that Full MVNO is not allowed in Thailand.