True Corporation (TRUE) is currently navigating a pivotal moment characterized by a significant structural shift and market volatility. The recent news regarding Mr. Suphachai Chearavanont’s transition to Arise Ventures and the acquisition of a nearly 25% stake from Telenor initially caused heavy selling pressure and market uncertainty.
However, according to Sigve Brekke, Group CEO True Corporation Pcl., and Executive Chairman Tech Telco and Digital Business, ARISE Ventures Group, in an exclusive interview with “Kaohoon,” this transition is not a signal of instability but rather a strategic realignment designed to capture the burgeoning digital growth in Thailand and Southeast Asia.
A Change at the Top, Not a Change in Direction
Mr. Brekke emphasizes that the recent market reactions stem from a misunderstanding of the transaction’s nature. He clarifies that this is “only a change of shareholding on the top” and should not be interpreted as a shift in True’s established business direction. The strategy for True—centered on reaching profitability and financial discipline—was aligned between Mr. Brekke and Mr. Suphachai three years ago during the “merger of equals” between True and DTAC.
The exit of Telenor as a cornerstone investor is described as a portfolio adjustment aligned with their previous market messages. While Telenor is selling, Mr. Suphachai is buying, signaling his strong belief that Thailand is exceptionally well-positioned to be a leader in the regional digital ecosystem. Consequently, the management of the company remains under a professional, “world-class” team consisting of five nationalities—including experts from Telenor, India, Canada, Pakistan, and Silicon Valley—ensuring continuity and global expertise.
The Vision of Arise Ventures: Building a Digital Empire
Mr. Suphachai is pitching Arise Ventures not merely as a holding company, but as a tech giant. This new entity is designed to oversee a comprehensive digital ecosystem in Thailand, holding ownership stakes in True Corporation, the data center business (True IDC), TrueMoney, and the virtual bank.
The primary objective of Arise is to leverage the synergies between these distinct business units. Mr. Brekke, who will serve as the Executive Chairman of the Digital Business at Arise while remaining Group CEO of True, explains that having these assets under one group makes it easier to “extract those values and those synergies”. For example, True can sell cloud services provided by the data center business without having to invest in the infrastructure itself, or it can offer banking services from TrueMoney directly to its subscriber base.
Transitioning to a “Tech-Telco”
A core element of this evolution is the transformation of True from a traditional telecommunications player into a “tech-telco”. This transformation is built on two primary pillars:
- Cloud-First Strategy: Lifting IT transactions and network operations into the cloud to increase operational efficiency.
- AI-First Strategy: Utilizing artificial intelligence to automate manual services and engage with customers digitally.
True has recently appointed a Chief AI Officer from Silicon Valley to spearhead these efforts. The goal is to use AI for “hyper-personalized” offers, allowing the company to understand and provide the best possible value to every individual customer. This shift is expected to generate both cost synergies through efficiency and new revenue opportunities.
Synergies and the Financial Powerhouse
One of the most anticipated aspects of the Arise ecosystem is how True’s 50 million-plus subscribers will be integrated with the technology and innovation from Arise. While True will remain focused on its traditional business, Mr. Brekke gave an example of how the two companies can synergize together in the virtual bank business. By leveraging True’s customer base, the virtual bank can achieve a mass market presence rapidly, providing financial solutions directly to telecommunications users.
Operational Milestones and Growth Focus
Mr. Brekke notes that while the turnaround of True is not “fully” complete, the company has made massive strides following the merger three years ago. The organization has been trimmed, two networks have been collapsed into one to improve customer experience, and the customer base has been stabilized.
The focus for the current year is returning to growth through:
- Base Management: Developing and deepening relationships with existing customers.
- Brand Consolidation: Managing the transition of operating with two brands.
- Customer Service Improvement: Elevating service levels to compete with global platform players rather than just local telco competitors.
In this new digital model, True is moving away from the traditional approach of doing everything in-house. Instead, the company is forming strategic partnerships with “hyperscalers”, as well as content and insurance partners. This allows True to utilize its distribution power and 50 million customers to offer new services at a lower cost.
Assurance for Shareholders
To address concerns regarding capital efficiency, Mr. Brekke points to True’s performance over the last three years, noting a significant upswing in the share price since the merger and the company’s transition into profitability. True has committed to a “progressive dividend policy,” with the intention of paying slightly more in dividends each year while continuing to pay down debt.
Mr. Brekke reassures investors that he intends to remain at the helm to see this transition through, stating he “didn’t even think twice” when asked to help lead both True and Arise. He believes the combination of Thailand’s market opportunities and the positioning of the Arise group creates a strong foundation for growth.
