True Move, Thailand's third-largest mobile operator, is racing ahead to lead Thailand's fourth-generation mobile market with plans to spend 4 billion baht next February to launch the upcountry phase of its nationwide 4G network roll-out.
The budget includes the installation of 7,000 4G base stations on the 2100-megahertz spectrum, bringing the total to 9,000 stations after the installation is complete — more than 20 times the current number of 4G base stations installed by second-ranked DTAC.
Suphachai: Thais entering new 4G era
True Move will also start a productive collaboration with strategic partner China Mobile International (CMI), the world's biggest mobile communications company, through a 4G roaming partnership by year-end.
This will allow CMI's 800 million subscribers, including 50-60 million 4G customers, to roam with True Move's networks when travelling in Thailand.
"Thailand is set to enter the era of 4G next year," said Suphachai Chearavanont, chief executive of True Corporation, the parent firm of True Move.
"We [Thais] are now officially entering into a mobile internet culture, a trend that will bring sweeping changes in the technology industry," he said.
Mr Suphachai envisions True Move's network covering 60% of the population, putting the company ahead of its bigger rivals.
DTAC has 400 4G base stations, while mobile leader AIS has yet to start, as it holds much less frequency bandwidth.
Thailand's mobile operators are jostling for eminence in a hypercompetitive industry, with 4G service coming up trumps for the mobile market's top players as they hunt for growth opportunities beyond lower-margin voice service.
Mr Suphachai said the number of 4G subscribers in Thailand was expected to reach 2 million next year, driven by the continued upward momentum of smart device adoption.
"True Move aims to capture a 30% share of the market," he said.
The company currently has 80,000 4G customers, plus 18-19 million 3G subscribers.
To boost local 4G service, True Move plans to bring cheap (2,000 to 3,000 baht) Chinese 4G phones to the Thai market by next June, with many special versions made for CMI.
In addition, True Move has struck a roaming deal with Britain's Vodafone.
The agreement lets True Move customers travelling in Europe access Vodafone's high-speed network at preferential roaming rates.
True Move's customers will pay 499 baht a day for unlimited data use on Vodafone's networks.
Mr Suphachai expects roaming revenue will contribute 33% of True's total by 2016, up from 26-27% this year.
Thailand's mobile roaming market is expected to be worth 12 billion baht this year, down from an average annual market value of 15-18 billion baht, due to a sharp drop in tourist numbers resulting from the earlier political crisis.
Mr Suphachai said True remained on track to complete its major restructuring programme. The group's businesses, especially mobile phones, are showing signs of a rebound.
"We are heading in the right direction, with businesses moving ahead towards a growth pace," he said.
Mr Suphachai sees Thailand's fixed broadband market continuing its steady growth, with the number of broadband subscribers reaching 5 million.
Penetration of cable and satellite TV could also reach 50%, or 10 million households, by 2019. True, through its cable TV arm TrueVisions, has 2.5 million subscribers.
True is on course to deliver a full-year profit, with expectations of a record operating profit in the fourth quarter, Mr Suphachai said.