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What Thailand can learn about telecom mergers from developed countries

What Thailand can learn about telecom mergers from developed countries

13 Sept 23:37 Key points summarised by AI
  • Thailand's proposed merger between True Corporation and Dtac, which would reduce major mobile operators from three to two, has ignited a fierce debate regarding its potential impact on competition and consumers.
  • An OECD review of 18 studies on telecom mergers in developed countries (primarily 4-to-3 scenarios) found inconclusive results on short-term price effects but suggested long-term benefits to consumer welfare through increased investment.
  • The review identified critical factors for evaluating merger effects, including static price impacts, qualitative measures like capital expenditures and service quality investments, the evaluation timeframe, and the specific regulatory environment.
  • Critics in Thailand express concerns over reduced competition, warn against 'gun-jumping' practices (pre-merger coordination), and question the merger's stated reasons, noting that developed countries typically do not allow mergers that result in only two dominant players.
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