Bangkok Post (29 November 2007)
The second-ranked mobile-phone operator DTAC has played down a threat from third-ranked True Move, which had a surprising surge in its net subscriber base in the third quarter of this year, saying the sharp increase was merely due to a new calculation method and accounting changes. The response came after True Move had vowed to dethrone DTAC as the country's second-largest operator within the next few years.
True Move reported a sharp rise in the number of its new customers of 2.1 million in the third quarter, translating into a 35% market share and bringing its total to 12 million.
DTAC, meanwhile, had 400,000 net new subscribers in the three months to Sept 30 with a total of 16 million customers, while the market leader AIS had 800,000 net new customers in the third quarter, bringing its total to 23 million.
''The unusually high number of True Move's new subscribers came at its own expense, which would result in a higher financial burden and cash-flow constraints,'' said DTAC chief commercial officer Thana Thienachariya.
He said that while True Move had a high number of new subscribers, it posted a decline in revenue. By comparison, DTAC reported a 3% growth rate in its revenue in the quarter.
True Move currently has a 22% share in the mobile market in terms of the number of customers, but accounts for only 15% in terms of revenue, compared to 31% and 32% respectively for DTAC.
Mr Thana said that retaining a customer generally cost an operator between US$3 and $4, plus other expenses including the SIM card and numbering fee. DTAC has churn of about two million customers moving to and from other services every three months. ''This means if we add days to the customers, we would have an additional three million customers each quarter,'' he said.
Mr Thana said True Move had extended its validity period for inactive customers from 18 days to 45 days.
He also said that DTAC's major shareholder, Telenor of Norway, was not concerned about the the threat from True Move and insisted DTAC's goal was clear: to improve its bottom line for sustainable growth instead of looking to expand its subscriber base only.
However, Mr Thana acknowledged that DTAC was not as strong in the high-end and teen segments. AIS has a market share of up to 80% in the high-end segment, followed by DTAC with 15% and True Move at 5%.
DTAC plans to focus on high-end customers in 2008 by offering luxury services such as international roaming, with the aim of increasing its the market share to 25% next year, he said.
The second-ranked mobile-phone operator DTAC has played down a threat from third-ranked True Move, which had a surprising surge in its net subscriber base in the third quarter of this year, saying the sharp increase was merely due to a new calculation method and accounting changes. The response came after True Move had vowed to dethrone DTAC as the country's second-largest operator within the next few years.
True Move reported a sharp rise in the number of its new customers of 2.1 million in the third quarter, translating into a 35% market share and bringing its total to 12 million.
DTAC, meanwhile, had 400,000 net new subscribers in the three months to Sept 30 with a total of 16 million customers, while the market leader AIS had 800,000 net new customers in the third quarter, bringing its total to 23 million.
''The unusually high number of True Move's new subscribers came at its own expense, which would result in a higher financial burden and cash-flow constraints,'' said DTAC chief commercial officer Thana Thienachariya.
He said that while True Move had a high number of new subscribers, it posted a decline in revenue. By comparison, DTAC reported a 3% growth rate in its revenue in the quarter.
True Move currently has a 22% share in the mobile market in terms of the number of customers, but accounts for only 15% in terms of revenue, compared to 31% and 32% respectively for DTAC.
Mr Thana said that retaining a customer generally cost an operator between US$3 and $4, plus other expenses including the SIM card and numbering fee. DTAC has churn of about two million customers moving to and from other services every three months. ''This means if we add days to the customers, we would have an additional three million customers each quarter,'' he said.
Mr Thana said True Move had extended its validity period for inactive customers from 18 days to 45 days.
He also said that DTAC's major shareholder, Telenor of Norway, was not concerned about the the threat from True Move and insisted DTAC's goal was clear: to improve its bottom line for sustainable growth instead of looking to expand its subscriber base only.
However, Mr Thana acknowledged that DTAC was not as strong in the high-end and teen segments. AIS has a market share of up to 80% in the high-end segment, followed by DTAC with 15% and True Move at 5%.
DTAC plans to focus on high-end customers in 2008 by offering luxury services such as international roaming, with the aim of increasing its the market share to 25% next year, he said.
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