INTRODUCTION

Many firms seek to get a maximum profit in the marketplace but how can they succeed their goal. Economics is the study to understand marketplaces and how people make their choices consumers (Begg and Ward, 2012).Economics is everywhere, affecting every business whether large or small. In order to make a profit, firms have to take a risk and make a decision under different situation. Understanding economics will help business owner making the right decision. (Dransfield, 2014). Mobile telecommunication plays an important role for both business and economy. In the business, it has been used to transfer voice or data over long distance, allowing people to interact with each other, many firms take an advantage of this modern technology to make communication to their supplier, customers and manage daily work. There are nearly 7 billion mobile subscriptions worldwide, this is equivalent to 95.5 per cent of the world population and this trend is predicted to increase rapidly in the future (ITU, 2014).

The main studies of this paper aim to understand economics for telecommunication industry in Thailand and the major factors that affect the competitive structure. This paper is organized by giving a general idea about Thai mobile communication background and the economic situation in the market, then moving into market structure, analysing competition within an industry and price competition strategies in the telecommunication market which is spitted into two parts: price competition and non-price competition. Conclusions are also drawn in a summary section.