Thailand - Major Telecom Operators

Paul Budde Communication Pty Ltd, July 2012, Pages: 42

This report looks at the major operators in the Thai telecom market. In what is a complex commercial environment we find a mix of state-owned companies and private operators functioning under a wide variety of corporate and regulatory structures and interfaces.

There are three major fixed-line operators – one government-owned and two private. Despite the effort put into this segment of the market, fixed-line services are outnumbered by mobile phone services by a ratio of more than ten to one. Nonetheless, with a teledensity of a little more than 10% in 2011, fixed-line services remain an integral part of the telecommunications environment in the country. A major effort by the Ministry of Information and Communications Technology (MICT) to promote DSL broadband services saw the start of a potentially enhanced role for the copper network. While reasonably good infrastructure has been put in place to support data services, this segment of the market has only recently been experiencing significant growth. Coming into 2012 fixed broadband internet penetration was around 6%.

In the meantime the mobile segment of the market continues its relatively strong growth, although not quite at the heady rates experienced a few years back. When two new mobile players – TA Orange (later to become True move) and Hutchison CAT – entered the market to challenge the entrenched duopoly of AIS and DTAC, competition became increasingly vigorous. Two other operators, Thai Mobile and CAT Mobile, also entered the market in a confusing fashion and without causing much impact. True Move, however, had managed to grab a sizeable chunk of the market and had around 25% of total subscribers by 2011. The local mobile sector has seen a sustained period of high competition with heavy price-cutting as the battle for market share raged. There was likely to be a push for consolidation, especially as the market gets closer to saturation. The government’s sectoral reform, once finalised, should also have a major impact on the shape and direction of the market. The matter of the government issuing 3G licences had become a prolonged saga causing much angst in the local industry– but the end was in sight.

In looking at some of the major telecom network operators in Thailand, this report touches on the wide scope of their operations – fixed line, mobile, broadband internet, international gateways and a range of other market segments.
Key developments:The National Broadcasting and Telecommunications Commission (NBTC) set out guidelines for the 2100MHz 3G auction it planned would happen towards the end of 2012; the commission had earlier approved a frequency allocation master plan that allowed it to legally hold the proposed 3G auction; the NBTC authorised AIS and then both DTAC and True to carry out 4G LTE mobile trials using already allotted frequencies. The regulator was conducting a review of foreign ownership rules for telecom operators, with important consequences for the mobile segment.

1. Synopsis
2. Operating environment for operators
2.1 Market overview
2.2 Background
2.3 Mobile market
2.3.1 CAT and TOT
2.4 Operator statistics
3. Major operators
3.1 Advanced Info Service (AIS)
3.1.1 Overview
3.1.2 Corporate structure
3.1.3 Statistics
3.1.4 Financials
3.1.5 Developments
3.1.6 3G strategy
3.1.7 WiMAX
3.1.8 AIS/Advance Datanetwork Communications (ADC)
3.2 DTAC
3.2.1 Overview
3.2.2 Statistics
3.2.3 Financials
3.2.4 3G strategy
3.3 True Corp
3.3.1 Overview
3.3.2 Company structure and financial history
3.3.3 Financials
3.3.4 Fixed-line services
3.3.5 True Move
3.3.6 True Online
3.4 Telephone Organization of Thailand Corp (TOT)
3.4.1 Overview
3.4.2 Corporate structure
3.4.3 Statistics
3.4.4 Network expansion activity
3.4.5 3G strategy
3.4.6 Proposed privatisation
3.4.7 TOT broadband
3.5 Communications Authority of Thailand (CAT)
3.5.1 Overview
3.5.2 Network and business expansion
3.5.3 Proposed privatisation
3.5.4 Proposed CAT/TOT merger
3.5.5 International
3.5.6 CAT Telecom mobile
3.5.7 Hutchison CAT
3.5.8 CAT broadband
3.6 Thai Mobile, TOT and CAT
3.6.1 TOT/CAT joint venture
3.6.2 Statistics
3.6.3 Restructuring of Thai Mobile joint Venture
3.6.4 Proposed 3G network
3.7 TT&T
3.7.1 Overview
3.7.2 Business development
3.7.3 Company and financial restructuring
3.7.4 Financial rehabilitation plan
3.7.5 Triple T Broadband/Jasmine
4. Related reports
Table 1 – Fixed-line operators and subscribers – 2009; 2011
Table 2 – Mobile operators, subscribers and annual change – 2011
Table 3 – Mobile operators, subscribers and market share – 2011
Table 4 – Other mobile operators, subscribers and annual change – March 2009
Table 5 – Monthly ARPU (postpaid, prepaid, blended) for major mobile operators – 2011
Table 6 – AIS: subscribers and market share – 2004; 2007 - 2012
Table 7 – AIS: mobile subscribers and ARPU (postpaid and prepaid) – March 2012
Table 8 – AIS: ARPU (postpaid, prepaid and blended) – 2007 - 2012
Table 9 – AIS: number of data users – 2008 - 2012
Table 10 – AIS: proportion of revenue from non-voice – 2008 - 2012
Table 11 – AIS: capital expenditure – 2008 - 2012
Table 12 – DTAC: subscribers and market share – 2002 - 2003; 2005 - 2012
Table 13 – DTAC: mobile subscribers and ARPU (postpaid and prepaid) – 2011
Table 14 – DTAC: ARPU (postpaid, prepaid and blended) – 2008 - 2011
Table 15 – True’s total revenues – 2004 - 2011
Table 16 – True Corp: capital expenditure – 2007 - 2011
Table 17 – True’s fixed-line subscribers – 2004 - 2011
Table 18 – True’s fixed line ARPU – 2004 - 2011
Table 19 – True’s payphone ARPU – 2004 - 2011
Table 20 – True Move: subscribers and market share – 2004 - 2012
Table 21 – True Move: mobile subscribers and ARPU (postpaid and prepaid) – September 2011
Table 22 – True Move: ARPU (postpaid, prepaid and blended) – 2007 - 2011
Table 23 – True Move: proportion of revenue from non-voice – 2008 - 2011
Table 24 – True’s PCT subscribers – 2004 - 2011
Table 25 – True’s fixed internet subscribers – 2003 - 2011
Table 26 – True’s broadband subscribers – 2001 - 2012
Table 27 – TOT’s fixed-line subscribers – 2005 - 2011
Table 28 – TOT’s total revenues – 2005 - 2011
Table 29 – TOT’s payphones – 2005 - 2011
Table 30 – TOT’s broadband services – 2007 - 2011
Table 31 – TOT’s broadband internet ports in service – 2010
Table 32 – CAT Telecom’s subscriber growth – 2006 - 2009
Table 33 – Hutchison CAT: subscribers and market share – 2003; 2007 - 2010
Table 34 – Thai Mobile Telecom’s subscriber growth – 2002 - 2009
Table 35 – Triple T Broadband’s subscribers – 2004; 2007 - 2009
Chart 1 – AIS financials – 2007 - 2010
Chart 2 – True Move financials – 2007 - 2010
Exhibit 1 – Major operators by market segment
Exhibit 2 – True Corp’s major shareholders – April 2011

TOT Corp; CAT Telecom; True Corp; True Move; TT&T; Triple T Broadband; Jasmine International; AIS; DTAC; Hutchison CAT

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