Telecommunication as an Oligopoly in Thailand

Topics: Telecommunication, Telephone, Telecommunications Pages: 5 (262 words) Published: September 22, 2014
 Tanawat Pravichpibul
5380307
Section 1
Telecommunication
There are not many telecommunication service providers in Thailand; it can be classified as an oligopoly in Thailand. Telecommunications have become a big part of Thai people lives where almost every Thai citizen is obligated to have a mobile phone and its service packages. As technological advancement improves rapidly, 4G is now partly available in Thailand. However, due to its huge cost requirements to enter into this market, many investors have no interest to enter into this market and decide to invest in something else leaving only the big three firms in the markets which are: AIS, TRUE, and DTAC.

Each firm spent a huge amount of money on advertisement and promotions hoping to gain loyalties from consumers. Each firms offer appealing promotions to customers and they can mainly divide into two main groups: top-up and monthly paid customers. Not only spending on advertisement and promotions, but they are also competing on signal quality, speed of the signal, and signal’s coverage area.

As of now 2014, AIS is still the market leader in telecommunication service; its number of the percentage of share of the total telecommunication market share is 45.52% followed by DTAC which has 29.36% of the total share, TRUE which has 24.26% of the total market share, and CAT telecom, which contribute only 1.67%.As AWN is operating under AIS, its summation of both companies’ shares (24.26% and 22.83%) are 45.52%.

S1=AIS,S2=DTAC,S3=truemoveH,S4=CAT
Concentration ratio: C1=S1+S2+S3+S4
C3=0.4552+0.2936+0.2426=0.9914
=3/4
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