Advanced Info Thailand Invests 9.6Bn. Data growth very strong, subs at 12mn or 1/3 sub base, smartphones at 17% penetration up from 11% in 2011. Data usage and revenue 65% growth.
3G license in December, commercial launch next month in key cities. 70bn over three years. 97% population coverage. 2015, no longer own 2g assets, so need to push stand alone build out all new core, transmission, some new towers looking to lease many of the 2g towers.
2g to 3G conversion different than other markets. We need to think of this as SEPERATE company, as it is subs need to sign with the new company…swap sim for newer version to click yes over SMS and they will move over to new data base. Not all customers have the new sim yet, but 90% prepaid with churn at 4-5% per month, so natural sim churn anyway.
Need 3G devices to push higher revenues…5.25% license fee vs. 30% under current. Sub comes in, buys 3G sim, but cannot connect to 2.1 network….that sub will roam on 900 network. Roaming revenue subject to old revenue share. Affordable 3G devices coming into market this year….good variety and pricing. 3G devices sold for five years as phones are fashion item, 12-18 month replacement cycle. 20% of base already has 3G devices. Mass adoption at 60USD.