Major service disruption triggers demands for regulatory overhaul
Thailand's telecommunications regulator, the National Broadcasting and Telecommunications Commission (NBTC), has called on True Corporation, the nation's second-largest mobile carrier, to review and improve its emergency measures following a nationwide outage that affected millions of users this week. The incident, which began on Thursday and was attributed to a power system failure at a core network center, drew criticism for inadequate response from officials.
In a meeting with True executives on Friday, the NBTC criticized the company's handling of the outage, saying it should have offered more than the 10 gigabytes (GB) of free data and 100 minutes of free calls it initially announced, and the compensation should not have been limited to a 24-hour validity period. The NBTC also advised the use of alternative methods besides SMS to communicate with customers about the compensation.
The outage underscores deeper concerns about competition in the Thai mobile market, according to industry experts. With just two major providers, True-DTAC and AIS-3BB, following recent mergers, a lack of competition has resulted in decreased service reliability, including slower speeds and unstable signals.
Somkiat Tangkitvanich, the president of the Thailand Development Research Institute (TDRI), highlighted the need for the government to liberalize the telecom market by allowing US companies to enter and compete. He argued that this could address the current market challenges, strengthen Thailand's position in trade negotiations with the United States, and improve the nation's digital economy, which heavily relies on robust IT infrastructure.
The TDRI also called on the NBTC to enforce international service standards and impose penalties based on the duration of disruptions. This recommendation was supported by Jutha Sangkachart, a member of the Consumer Council of Thailand, who stressed the importance of a third telecom player, such as state-owned National Telecom (NT), to counterbalance the two private giants.
An estimated 58% of the country's mobile subscribers were affected by Thursday's outage, highlighting both the lack of market competition and vulnerabilities in the nation's cybersecurity framework. To ensure clear communication of outage details, causes, estimated repair times, and network performance by area to consumers, the NBTC was recommended to require providers to disclose such information.
With Thailand's high smartphone penetration and mobile-first consumer base, telecom operators should prioritize seamless, reliable mobile connectivity to support the growing social commerce and e-commerce sectors. Additionally, advancing investments in next-generation technologies like 5G, AI, and automation could enhance network reliability, speed, and customer support.
Direct investment in next-generation technologies like 5G, AI, and automation by telecom operators in Thailand could potentially improve network reliability and speed, further supporting the growth of e-commerce and social commerce sectors.
The lack of competition in Thailand's mobile market and vulnerabilities in the nation's cybersecurity framework, as highlighted by the recent outage, potentially indicate the need for the government to consider implementing stricter service standards and encourage greater competition, possibly by allowing more foreign companies to enter the market.
