True–DTAC Merger Plans and Business Impact

The True–DTAC merger is a significant development in the Thai telecommunications industry. The merger was announced in January 2022, with plans to combine the operations of True Corporation and DTAC, two of Thailand's largest mobile operators.

The merged entity will have a combined customer base of over 40 million subscribers, making it the largest mobile operator in Thailand. This will give the company significant bargaining power with network infrastructure providers and content suppliers.

The merger is expected to result in cost savings of around 20 billion THB per year, which will be invested in network upgrades and new services. This will improve the overall quality of service for customers and increase the competitiveness of the merged entity.

The merged company will be led by a new CEO, Alexander Jensen, who has experience in the telecommunications industry.

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The merger between True Corporation and DTAC was a significant event in the Thai mobile network industry.

A corporate merger between True and DTAC took place in 2023, following its first public announcement on 22 November 2021.

The combined entity became the largest mobile network in Thailand, surpassing current market leader AIS, and reduced the mobile provider market to a duopoly.

The deal was strongly opposed by academics and civil society groups as detrimental to consumers and the public interest.

The company Citrine Global was formed as a joint venture between True parent Charoen Pokphand Group and DTAC parent Telenor, and was registered with the Department of Business Development on 9 July 2021.

Citrine Global's office is located at 313 CP Tower Building, Silom Road, Silom, Bang Rak, Bangkok.

The merger was expected to be completed in late September 2022, but was "acknowledged" by the regulator NBTC at a meeting on 20 October 2022.

The newly merged company retained the True Corporation name, which was founded on 1 March 2023.

The company was listed on the Stock Exchange of Thailand under the stock ticker symbol TRUE on 3 March 2023.

True and DTAC shareholders approved the merger at their respective Annual General Meetings in April 2022.

The merger prices for True and DTAC shares were set at 5.09 baht and 47.76 baht per share, respectively.

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The DTAC merger plans have been a topic of discussion in Thailand's telecommunications industry. The merger between True Corporation and DTAC was completed in March 2023.

The merged entity, True Corporation, was listed on the Stock Exchange of Thailand under the stock ticker symbol TRUE on 3 March 2023. The company was formed as a joint venture between True parent Charoen Pokphand Group and DTAC parent Telenor.

True Corporation plans to consolidate the loyalty programmes of True and DTAC into a single scheme next year to improve consumers' experiences and strengthen customer relationship management (CRM). This move aims to provide customers with more convenience and benefits.

The company has around 11.5 million True customers engaging with the TrueID platform per month, while the number of DTAC customers engaging with the DTAC app is more than 8 million per month. The most popular benefits for True customers to redeem are free internet access, food and beverage, entertainment, gift vouchers, and shopping.

The NBTC has imposed conditions on the merger, requiring the merged entity to continue serving customers under the existing True and DTAC brands for at least three years after the merger.

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The proposed business merger between True and DTAC has sparked controversy, with concerns over unfair competition, limited consumer choices, and data privacy infringement.

The National Broadcasting and Telecommunications Commission (NBTC) has classified this deal as a red flag, but the question remains whether they have the power to reject it.

According to Section 6 of the Act on Organization to Assign Frequency Waves and Regulate the Radio Broadcasting Business Television and Telecommunications, the NBTC has the power to appoint seven commissioners to consider the deal.

Unfortunately, there are only five qualified commissioners, with three of them believing the NBTC has the power to approve or block the deal, while the other two think it's out of their scope.

The NBTC's plan to proceed with the deal, as of August 17, 2022, has raised eyebrows, especially considering the NBTC's limited powers in this matter.

The merger is also being compared to the AIS-TTTBB deal, where AIS acquired TTTBB's business, but the NBTC's role in that transaction was different due to an outdated notification.

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