Telenor’s DTAC and CP Group’s True Corporation guaranteed their merger would benefit telecommunication industry competitiveness while customers would in fact be offered cheaper, better services and not the other way round.
The two companies aim to meet increasing customer expectations and capture new growth opportunities in a fast-changing digital world, but many are worried the merger would naturally mean less competition, resulting in fewer innovations in technology and services and rising costs caused by a limited market.
Telenor Group senior vice president for Asia Jon Omund Revhaug tried to lay some fears to rest, telling a seminar that after the merger, his company would continue to invest on the continent, including Thailand, as the firm has been operating in Asia for the past 25 years and more than 60 per cent of its revenue has come from Asia.
He was speaking at the seminar titled “The Disruption of Business, Competition and Transformation, Ready Now for the Future” at Centara Grand at Central Plaza Ladprao in Bangkok.
For Thailand, Telenor expects strong growth in data consumption and mobile and internet users. The company says it is committed to investing in Thailand for several decades to come.
Telenor believes the DTAC-True merger would create a telecom-tech company with the necessary strength and financial capability to innovate cutting edge technology with respect to 5G and other digital transformations in a step to drive Thailand’s digital economy forward and provide customers with better experiences.
DTAC would also make sure data protection and reliable connectivity will be the top priority as more customers rely on operators to keep their data safe, Revhaug said.
Regarding worries that the mega merger would lead to market dominance and customers would have to pay higher prices, True Corporation president Natwut Amornvivat guaranteed the tie-up would benefit True and DTAC customers as both firms have their strong points in strengthening the new company without incurring fresh debt. This means better service experience for customers, he said.
As for service prices, Natwut explained that the telecommunications business in Thailand is governed by several laws and the National Broadcasting and Telecommunication Commission (NBTC) is making sure the business is strictly regulated under the trade competition law. Therefore, even though DTAC and True will have access to a massive 54 per cent of customers in Thailand after the merger, they would still have to follow price regulations set by the NBTC.
Natwut claimed the merger would actually allow the new giant firm to offer a wider range of products and services to customers at cheaper prices because the company will have access to more customers without incurring extra debt.
Currently Advance Info Service, or AIS, is the number one telecommunication provider in Thailand with 43.7 million subscribers followed by True with 32 million and DTAC with 19.3 million.
Published : Jun 27, 2022
Published : Jun 27, 2022
Published : June 23, 2022
By : THE NATION