Samart Corporation is gearing up to boost its digital set-top box business with the debut of its own box for terrestrial digital TV to stay one step ahead of rivals.
Mr Watchai at the launch of the Strong digital set-top box yesterday.
The communications equipment maker yesterday launched its Strong high-definition (HD) set-top box, giving users a sharp picture, to comply with digital TV broadcasting standards.
President Watchai Vilailuck said Samart expects to sell 200,000 boxes within two months through its 10,000 I-Mobile shops, its handset distribution channel.
The National Broadcasting and Telecommunications Commission (NBTC) will hold an auction for digital TV licences next month.
It is set to be the hottest auction in Thailand's broadcasting history, with companies vying for the 15-year licences that will replace the traditional concession regime.
A Strong set-top box costs 1,155 baht. It will be connected between the antenna and the TV set to receive 13 channels on a trial basis.
Samart is preparing to launch another two set-top box models by next May. One will be priced below 1,000 baht for the mass market, while the other costs about 3,000 baht and is aimed at high-end customers.
The NBTC has set aside 15.2 billion baht to subsidise digital TV set-top boxes for 22 million households.
The regulator will give away coupons worth at least 690 baht to households for buying a box or digital-compatible TV.
"We intend to sell 1 million digital set-top boxes next year, increasing to 5 million units or 20% of the total market by 2016," said Mr Watchai.
Samart expects revenue of 3 billion baht from digital TV-related businesses next year, a new revenue stream.
Mr Watchai believes almost 30% of Thai households will move to digital broadcasting next year. Signal coverage is expected to cover 80% of the country by 2015.
Samart is vying for a licence to operate a digital TV channel.
Yesterday, the company reported consolidated third-quarter revenue of 5.9 billion baht, up by 50% year-on-year, for a net profit of 393 million, up by 43%.
Mr Watchai attributed the group's strong performance to the five-fold increase in Samart I-Mobile's net profit and a 66% increase in handset sales.
"We project consolidated revenue of 23 billion baht this year," he said.