The four companies providing mobile services on CAT Telecom's cellular network have come together to strengthen their position as they seek to promote an affordable alternative service platform.
The alliance has been formalised through establishment of the Thailand MVNO Club, an organisation that aims to increase their bargaining power in any negotiation with authorities in areas of the industry policies and regulatory framework.
The move is also expected to reduce their operating costs through back-office sharing that includes IT processing and accounting systems, said Watchai Vilailuck, chairman of the Thailand MVNO Club.
The club comprises I-Mobile Plus, a subsidiary of Samart Corporation; The WhiteSpace; 168 Communication; and Myworld 3G Co.
A mobile virtual network operator (MVNO) is a company that provides mobile service but does not have its own mobile network.
"Even though the mobile market in Thailand has reached a mature level with the country's penetration rate of 145%, we believe there is still enough room for MVNOs to grow given many untapped segments, especially in the rural market," said Mr Watchai, who is also the president of Samart Corporation.
Samart now provides mobile service on the cellular networks of two state telecom enterprises -- CAT Telecom and TOT Plc -- under an MVNO business model.
Samart has 300,000 active 3G subscribers on TOT's 2100-megahertz spectrum since it started providing service in 2010. The company plans to launch its mobile service on CAT's 850MHz network next month.
CAT has 14,536 3G base stations nationwide, while TOT has 5,320 3G base stations.
"We expect to have 200,000 subscribers on CAT's network later this year," said Mr Watchai.
He said MVNO was a viable business model under the current mobile business environment because it requires relatively low investment for service rollout, such as spectrum cost and network infrastructure development.
"MVNOs will not compete directly with the three major mobile operators. Instead, we are targeting customers in those untapped segments of the market," said Mr Watchai.
Chaiyod Chirabowornkul, chief executive of The WhiteSpace and also secretary of the Thailand MVNO Club, said there were over 20 companies that obtained MVNO licences from the National Broadcasting and Telecommunications Commission, yet only a few can survive.
Surapan Meknavin, a board director of CAT Telecom, said CAT would rent its 850MHz network capacity to the four MVNOs, which can serve at least 4 million customers.
CAT plans to partner with three more MVNOs by year-end, including hypermarket operator Tesco Lotus, said Mr Surapan.