Thailand’s True Corporation is undergoing a leadership and ownership shift as it refocuses on digital growth. Following recent market reaction to changes involving key executives and shareholder Telenor, True Corp. executives are emphasizing that these moves are part of a planned strategic realignment. The company aims to evolve into a “Tech-Telco” – leveraging its substantial subscriber base and new ventures under the arise Ventures umbrella – while maintaining financial discipline established after its 2022 merger with DTAC.
True Corporation Public Company Limited (TRUE) is navigating a significant transition period marked by market fluctuations and a restructuring of its leadership, the company announced. Shares experienced selling pressure and uncertainty following news of a role change for Mr. Supachai Chearavanont to Arise Ventures and the acquisition of nearly 25% of the company by Telenor.
However, Mr. Sigve Brekke, Group Chief Executive Officer of True Corporation and Chairman of the Executive Committee of Technology and Digital at Arise Ventures Group, clarified that this shift is a strategic realignment designed to accelerate digital growth across the organization, in Thailand, and throughout Southeast Asia, rather than a sign of business instability.
A Change in Shareholders, Not Strategy
Mr. Brekke attributed yesterday’s market reaction to a misunderstanding, explaining that the move represents a “change in ownership at the top level” without impacting True’s established business direction. The focus on profitability and financial discipline, initially agreed upon during the “merger of equals” between True and DTAC three years ago, remains a shared priority between Mr. Brekke and Mr. Chearavanont. Telenor’s divestment as a major shareholder aligns with previously announced portfolio adjustments, while Mr. Chearavanont’s purchase signals confidence in Thailand’s potential as a regional digital hub. The company emphasized that its management team, comprised of global and multi-national professionals, will ensure continuity and maintain a high level of expertise.
Arise Ventures’ Vision: Building a Digital Ecosystem
Mr. Chearavanont envisions Arise Ventures as more than a holding company, positioning it as a major technology player with holdings in True Corporation, data center business True IDC, TrueMoney, and a Virtual Bank. The primary goal of Arise is to leverage synergies between these businesses. Mr. Brekke, who will also serve as Chairman of the Digital Business Executive Committee of Arise, explained that consolidating these assets will facilitate the “extraction of shared value and benefits.” For example, True can offer cloud services from its data center business without needing to invest in infrastructure, or directly provide TrueMoney financial services to True customers.
Transitioning to a “Tech-Telco”
This evolution centers on transforming True from a traditional telecommunications provider into a “Tech-Telco” driven by two core strategies:
Cloud-First Strategy: Migrating IT and network operations to the cloud to enhance efficiency.
AI-First Strategy: Utilizing artificial intelligence (AI) to automate manual services and engage with digital customers. True has appointed a Chief AI Officer from Silicon Valley to spearhead this strategy, aiming to deliver “hyper-personalized” offerings by gaining a deeper understanding of individual customer needs. The company anticipates cost synergies alongside new revenue opportunities.
Synergies with Financial Strength
A key element of the Arise ecosystem is connecting True’s base of over 50 million subscribers with the technology and innovation from Arise. True will continue to focus on its core business, while Mr. Brekke highlighted the synergy potential in the Virtual Bank sector. He noted that the large customer base will enable the virtual bank to rapidly reach a mass market and deliver tailored financial solutions to telecom users.
Operational Milestones and Growth Focus
Mr. Brekke acknowledged that the restructuring is still in progress but emphasized significant progress made since the merger three years ago. This includes organizational streamlining, network integration to improve customer experience, and maintaining a stable customer base. The company’s focus for this year is a return to growth through:
1. Customer Base Management: Strengthening relationships with existing customers.
2. Brand Integration: Managing the transition of two brands into one.
3. Enhanced Customer Service: Competing with global platforms, not just local telecom providers. In this new digital model, True will increasingly collaborate with strategic partners – including hyperscalers, content providers, and insurers – to leverage its distribution channels and 50 million-strong customer base to launch new services at lower costs.
Reassurance to Shareholders
Addressing investor concerns, Mr. Brekke pointed to the company’s performance in the three years following the merger, which has driven a substantial increase in share price and a return to profitability. True plans to maintain a consistent and gradually increasing dividend policy while continuing to reduce debt. He affirmed his commitment to leading the company forward, expressing confidence in the Thai market’s potential and the strong foundation provided by Arise for future growth.
