Several mobile virtual network operators (MVNOs) are busy seeking new network rental deals with telecom operators as the three spectrum bands of National Telecom (NT) they use at present to offer their services are set to expire in August 2025.
The NT bands scheduled to expire are 850MHz, 2100MHz and 2300MHz. They will be returned to the National Broadcasting and Telecommunications Commission (NBTC) for reallocation in this year's second quarter.
An MVNO is a mobile phone operator that does not have its own dedicated cellular network and has to rent networks from others in order to provide their service.
According to the NBTC, there are 15 companies each holding one of its type 1 licences, which are specifically for telecom operators that do not have their own network.
The companies holding a licence are: One-2-All, Loxley, O.S.D., Nam Telecom, The WhiteSpace, True Move H Universal Communication, N.S. Digital Network, Friend Digital Services, Feel Telecom Corporation, K4 Communication, RedOne Network (Thailand), Bangkok Telling, Central Telecom, One O One Global and A Telecom.
However, the NBTC is not able to specify exactly how many of the licence holders are active at present.
An NBTC source who requested anonymity said RedOne Network, which uses one of NT's spectrum bands that is due to expire in August, is in talks with True Corporation on becoming an MVNO on True's network.
The source added that while True is ready in principle to accept MVNOs, the company has not yet been able to tell whether it and prospective MVNO partners would be able to work together under its conditions, especially in terms of service quality and the price of the network capacity that would be allocated to them.
The WhiteSpace is holding talks with NT on a plan to switch to rent the state enterprise's 700MHz spectrum band instead of the band it uses now which is set to expire in August.
Chaiyod Chirabowornkul, chairman of The WhiteSpace, said the company holds network rental agreements for both TOT's 2100MHz network capacity and CAT Telecom's 850MHz network capacity which were made prior to TOT and CAT Telecom merging to become NT in January 2021.
The WhiteSpace is the operator of the Penguin SIM card brand that was launched in 2016.
He said the company proposed to NT entering into a 700MHz network rental agreement last year to enable it to continue its service.
The company has also entered into new businesses, including used car sales and a trial debt collection service, to diversify its business portfolio.
Mr Chaiyod said the existing MVNO business ecosystem is not favourable for the growth of MVNOs due to fierce competition in the mobile phone service market.
MVNOs have low bargaining power to negotiate with major operators to rent their cellular network capacity to provide their services, he added.
The WhiteSpace had only 40,000 subscribers in the last two years, compared to more than 1 million in 2018 at the peak of its MVNO business.