Thailand - Major Telecom Operators

Synopsis

This report looks at the major operators in the strong Thai mobile 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 10% in 2010, fixed-line services remain an integral part of the telecommunications environment in the country. Efforts by the Ministry of Information and Communications Technology to promote DSL broadband services, which it initiated in 2004, was to see the start of a potentially enhanced role for the copper network. While reasonably good infrastructure has been put in place to support data communication services, this segment of the market only began to experience significant growth during 2006/07 and coming into 2010 broadband internet penetration was still only around 4%.

In the meantime the mobile segment of the market continues to grow strongly, although not quite at the heady growth 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 Advanced Info Service and Total Access Communications, 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. By contrast, True Move (formerly TA Orange) had grabbed close to 24% of total subscribers by 2010. The local mobile sector has seen a sustained period of high competition involving 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.

Table of Contents

• 1. Synopsis
• 2. Operating environment for operators
  • 2.1 Market overview
  • 2.2 Historical background
  • 2.3 Mobile market
  • 2.4 Operator statistics
• 3. Major operators
  • 3.1 Advanced Info Service (AIS)
    • 3.1.1 Overview
    • 3.1.2 Key drivers
    • 3.1.3 Statistics
    • 3.1.4 Financials
    • 3.1.5 Developments
    • 3.1.6 3G strategy
    • 3.1.7 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 Background
    • 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 Statistics
    • 3.4.3 Network expansion activity
    • 3.4.4 3G strategy
    • 3.4.5 Proposed privatisation
    • 3.4.6 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 CAT Telecom mobile
    • 3.5.6 Hutchison CAT
    • 3.5.7 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 Thai Telephone &Telecommunications (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
• Table 2 – Mobile operators, subscribers and annual change – 2010
• Table 3 – Mobile operators, subscribers and market share – 2010
• Table 4 – ARPU (postpaid, prepaid, blended) for major mobile operators – 2010
• Table 5 – AIS: subscribers and market share – 2004; 2007 - 2010
• Table 6 – AIS: mobile subscribers and ARPU (postpaid and prepaid) – 2010
• Table 7 – AIS: ARPU (postpaid, prepaid and blended) – 2007 - 2010
• Table 8 – AIS: proportion of revenue from non-voice – 2008 - 2011
• Table 9 – AIS: capital expenditure – 2008 - 2011
• Table 10 – DTAC: subscribers and market share – 2002 - 2003; 2005 - 2010
• Table 11 – DTAC: mobile subscribers and ARPU (postpaid and prepaid) – 2010
• Table 12 – DTAC: ARPU (postpaid, prepaid and blended) – 2008 - 2010
• Table 13 – True’s total revenues – 2004 - 2010
• Table 14 – True Corp: capital expenditure – 2007 - 2011
• Table 15 – True’s fixed-line subscribers – 2004 - 2010
• Table 16 – True’s fixed line ARPU – 2004 - 2010
• Table 17 – True’s payphone ARPU – 2004 - 2010
• Table 18 – True Move: subscribers and market share – 2004 - 2010
• Table 19 – True Move: mobile subscribers and ARPU (postpaid and prepaid) – 2010
• Table 20 – True Move: ARPU (postpaid, prepaid and blended) – 2007 - 2010
• Table 21 – True Move: proportion of revenue from non-voice – 2008 - 2011
• Table 22 – True’s PCT subscribers – 2004 - 2010
• Table 23 – True’s fixed internet subscribers – 2003 - 2010
• Table 24 – True’s broadband subscribers – 2001 - 2002; 2004 - 2012
• Table 25 – TOT’s fixed-line subscribers – 2005 - 2010
• Table 26 – TOT’s total revenues – 2005 - 2010
• Table 27 – TOT’s payphones – 2005 - 2010
• Table 28 – TOT’s broadband services – 2007 - 2010
• Table 29 – TOT’s broadband internet ports in service – 2009
• Table 30 – TOT’s broadband subscribers – 2007 - 2010
• Table 31 – CAT Telecom’s subscriber growth – 2006 - 2009
• Table 32 – Hutchison CAT: subscribers and market share – 2003; 2007 - 2010
• Table 33 – Thai Mobile Telecom’s subscriber growth – 2002 - 2009
• Table 34 – 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 – March 2010