Thailand’s Charoen Pokphand (CP) Group and Norway’s Telenor Group jointly announced an “equal partnership” for the US$ 200-million joint venture, with a focus on tech start-up investment today (Monday).

The news came after rumours swirling over the past couple weeks about a merger between the two telecom giants True and Dtac or a takeover. On Friday, it was reported that CP and Telenor were discussing a merger, but both companies did not confirm the decision until now.

CP Group CEO and Chairman of the Board of True Corporation Supachai Chearavanont said at a Memorandum of Understanding that the telecom landscape has changed rapidly over the past several years, with new technologies, a broader market for competition and proposals for new forms of digital services from major telecom players.

These factors, he said, are forcing telecom operators to make adjustments quickly.

“Today is a step in that direction. We hope to empower a whole new generation to fulfil their potential to become digital entrepreneurs, leveraging an advanced telecom infrastructure. The emergence in Thailand of IoT (Internet of Things), AI, Cloud and new generations of mobile network technologies will have a huge effect on the way we do everything,” he said.

Supachai said the telecom and technology sectors are key to enabling Thailand to move up the development curve and to create broad-based prosperity.

“As a telecom-tech company, we can help unleash the enormous potential of Thai businesses and digital entrepreneurs, as well as attract more of the best and the brightest from around the world to do business in our country,” he said

President and CEO of Telenor Group Sigve Brekke said that the agreement today will help strengthen Telenor’s business base in Asia and create more value and market development in this region in the long term.

Executive Vice President of Telenor Group and Head of Telenor Asia Jørgen A. Rostrup said this will advance Telenor’s strategy to strengthen their presence in Asia, create value and support long-term market development in the region.

He added that Telenor has a long-standing commitment to both Thailand and the Asian region, and this collaboration will strengthen it further. Access to new technologies and the best human capital will make a vital contribution to the new company.”

Mr. Rostrup disclosed that the new company has the intention to raise venture capital funding of USD 100-200 million, together with partners, to invest in promising digital start-ups, focusing on new products and services for the benefit of all Thai consumers.

Representatives of True and Dtac are due to meet with the Thai National Broadcasting and Telecommunications Commission today and tomorrow to clarify details of the potential merger