AIS budgets $600m for 3G service

AIS budgets $600m for 3G service
Bangkok Post (18 October 2007)

Mobile market leader stressing convergence Advanced Info Service (AIS) has earmarked up to US$600 million to develop third-generation (3G) mobile phone services next year. The country's largest mobile-phone operator is also gearing up to restructure its billing systems, bundled services and overall efficiency to accommodate the group's convergence strategy. Hui Weng Cheong, deputy president for wireless communications, said AIS would seek loans to fund the 3G network, with initial capacity of 10 million users or about 40% of its total customer base. ''We are already pre-planning our jump onto the 3G bandwagon. We're ready to start the process once the National Telecommunications Commission (NTC) opens bidding for 3G licences,'' said Mr Cheong, who represents Singapore Telecom, which owns 21% of AIS. He said Thailand's mobile industry was expected to achieve another year of healthy growth in 2008, with 10 million new potential customers, fuelled by more liberalisation commitments and new data communication service offerings. The industry has forecast up to 11 million new customers in 2007. AIS alone expected five million new customers, second-ranked DTAC four million and No. 3 True Move two million. 'We expect to have between 4.5 million and five million new customers in 2008,'' Mr Cheong said yesterday. He said local mobile phone penetration was moving toward the pre-teen segment, with 50% of Thais aged between nine and 15 years already having mobile phones. AIS is formulating a series of tailor-made tariff plans to fit the pre-teen market, in which parents typically buy handsets for their children so they can reach them at any time. The company is also focusing more on small businesses, encouraging companies to use more postpaid services. Mr Cheong said AIS was stepping up promotion of its high-potential inbound roaming services, which generate 85% of total international roaming revenue. AIS has 5.3 million inbound roamers plus one million outbound users. International roaming is expected to account for 6% of AIS's revenue this year. ''We expect to have a total of six million outbound customers next year. International roaming would account for 10% of total revenue in 2008, driven mainly by the increasing number of foreign travellers thanks to the government's tourism promotion campaign,'' he said. Mr Cheong said AIS favoured a high-value managed-service strategy, by providing special privileges to inbound roamers at 10 concierge centres. Services include free SIM card and mobile phone replacement, a hotline number and limousine pickup from hotel to the airport. The company is also in talks with operators in 11 countries belonging to the Bridge Mobile Alliance, the leading mobile alliance in Asia Pacific, for possible discounts such as free talk-time for alliance customers using roaming services. Mr Cheong said AIS expected an upward trend in performance in 2008, based on hopes for economic improvement after the Dec 23 general election. Shares of AIS (ADVANC) closed yesterday on the SET at 92 baht, up one baht, in trade worth 289.04 million baht.