Mobile service revenue expected to see 4% bump

Mobile service revenue expected to see 4% bump

Norling: Maintaining number two position
Norling: Maintaining number two position

Thailand's mobile service revenue can expect an increase of 4% this year on the back of a rising postpaid customer base with high data usage.

"The number of postpaid users is expected to rise by 10% this year with mobile users accessing online content through their mobile devices," said Lars Norling, chief executive of Total Access Communication (DTAC), the country's second-largest mobile operator.

Mobile data traffic in Thailand is expected to grow by 80% this year, driven largely by the popularity of music and video streaming services, thanks to the availability of fourth-generation (4G) wireless broadband service.

The local prepaid mobile market will continue to see a contraction in growth or remain flat over the next few years, said Mr Norling.

"The number of 4G subscribers is growing faster than for 3G as Thais spend an average of six hours every day using their mobile phones," he said.

DTAC expects its number of 4G subscribers to reach 6 million by year-end -- up from 4 million at present -- in a market totalling 20 million.

Mr Norling said Thailand's mobile industry is shifting from mobile data service to the next wave of growth with digital service.

DTAC's data service revenue including digital service accounted for 55% of its total revenue in the first half of this year, exceeding traditional voice services for the first time.

To capitalise on the burgeoning digital service market, Mr Norling said DTAC is spending 240 million baht renovating 19 of its 400 retails shops located in Bangkok and major provinces.

The company plans to add an additional 100 shops by 2017.

Mr Norling said DTAC expects to see revenue growth this year after reporting flat revenue growth in the first half, mainly due to a loss of prepaid customers.

"We will maintain our number two position in an increasingly competitive environment," he said.

DTAC plans to invest 70 billion baht during 2016-2019 to expand its 3G and 4G network capacity and coverage, as well as on marketing to boost its brand image.

DTAC now has 5 million postpaid subscribers and 20 million prepaid customers. Postpaid users generate 40% of the company's total revenue.

DTAC's postpaid users spend an average of 450-500 baht per month.

Mr Norling said digital services will play an important role in driving higher average revenue per user.

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