DTAC, 3BB ink joint deal
Pact enables package bundling
Total Access Communication Plc (DTAC), the third largest mobile operator, and internet broadband service operator Triple T Broadband Plc (3BB) have reached a partnership deal to facilitate joint package collaboration by the two firms.
The signing of the memorandum of understanding (MoU) framework was announced by the two firms on Tuesday.
Pisut Ngamvijitvong, a senior analyst at Kasikorn Securities (KS), said the partnership between DTAC and 3BB would accommodate their cross-sales package collaboration.
Subscribers to one company should be drawn to the other through promotional packages, he said. For example, DTAC could give away SIM cards to the 3 million household subscribers of 3BB hoping they will become DTAC subscribers in the future.
Mr Pisut acknowledged the two companies may find it difficult to divide revenue gained from promotional package bundles.
"A promotional package bundled by a single entity would ensure more seamless operational management," he said.
Under the deal, 3BB and DTAC will also complement each other's services.
DTAC customers will also be able to access 3BB WiFi connection points as DTAC has a much fewer WiFi access points than its competitors, said Mr Pisut.
According to DTAC's press statement, the partnership will be a boon for both providers' services and revenue.
DTAC has 20.4 million subscribers and more than 400 customer service points. It aims to provide 5G service in the future.
3BB, which provides fixed broadband and other services, has 3 million subscribers and more than 500 stores across the country.
The MoU takes into account promotion and marketing campaigns, multiple services, mobile broadband, WiFi, over-the-top service and content distribution. Customers will be able to subscribe and buy products and services from both firms. The deal also covers infrastructure sharing and joint marketing campaigns.
Supoj Sanyapisitkul, president of Triple T Broadband, said the strategic partnership will benefit customers as they can access seamless fixed broadband and mobile services.
"Each party's resources and infrastructure will be shared to allow optimum benefit in the future business of both firms," said Mr Supoj. "This is a historic synergy in the country's telecom industry."