{"title":"Analysis of Thailand's fixed broadband internet services demand: A merger screening of AIS and 3BB","authors":"Thunwar Phansatarn , Chalita Srinuan","doi":"10.1016/j.telpol.2023.102702","DOIUrl":null,"url":null,"abstract":"<div><p>The article conducted a ‘merger screening’ of the potential impact of the merger between AIS and 3BB, which were the second and third largest internet service providers among the four major operators prior to the merger in 2022. National survey data across country in 2022 and discrete choice model was used for the analysis. Surprisingly, finding showed that AIS and 3BB were not the closest competitors, but instead True, the provider with the largest market share, was their closest competitor. Based on the pre-merger analysis, it was predicted that service prices were likely to increase, and this merger is comprised a relevant market. To accurately define the market (market definition), other operators' services should not be considered as well. Considering the rising magnitude in service prices, it is estimated that, on average, prices will increase by 7.51%–31.51% compared to the current rates in 2022. Moreover, the study revealed that the merger would lead to an average increase in cost efficiency of 15.01% of the current marginal cost, which would allow the post-merger service prices to remain unchanged if the cost savings are passed on to consumers. A key policy recommendation was for regulatory agencies to conduct further analysis of competition, including evaluating entry barriers, the response of non-merging competitors, and competition without regulated pricing. Additionally, the study examines the potential future impacts on social welfare.</p></div>","PeriodicalId":22290,"journal":{"name":"Telecommunications Policy","volume":null,"pages":null},"PeriodicalIF":5.9000,"publicationDate":"2024-01-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Telecommunications Policy","FirstCategoryId":"91","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S0308596123002136","RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"COMMUNICATION","Score":null,"Total":0}
引用次数: 0
Abstract
The article conducted a ‘merger screening’ of the potential impact of the merger between AIS and 3BB, which were the second and third largest internet service providers among the four major operators prior to the merger in 2022. National survey data across country in 2022 and discrete choice model was used for the analysis. Surprisingly, finding showed that AIS and 3BB were not the closest competitors, but instead True, the provider with the largest market share, was their closest competitor. Based on the pre-merger analysis, it was predicted that service prices were likely to increase, and this merger is comprised a relevant market. To accurately define the market (market definition), other operators' services should not be considered as well. Considering the rising magnitude in service prices, it is estimated that, on average, prices will increase by 7.51%–31.51% compared to the current rates in 2022. Moreover, the study revealed that the merger would lead to an average increase in cost efficiency of 15.01% of the current marginal cost, which would allow the post-merger service prices to remain unchanged if the cost savings are passed on to consumers. A key policy recommendation was for regulatory agencies to conduct further analysis of competition, including evaluating entry barriers, the response of non-merging competitors, and competition without regulated pricing. Additionally, the study examines the potential future impacts on social welfare.
期刊介绍:
Telecommunications Policy is concerned with the impact of digitalization in the economy and society. The journal is multidisciplinary, encompassing conceptual, theoretical and empirical studies, quantitative as well as qualitative. The scope includes policy, regulation, and governance; big data, artificial intelligence and data science; new and traditional sectors encompassing new media and the platform economy; management, entrepreneurship, innovation and use. Contributions may explore these topics at national, regional and international levels, including issues confronting both developed and developing countries. The papers accepted by the journal meet high standards of analytical rigor and policy relevance.