Advanced Info Service (AIS) has officially entered the race for fixed-line broadband internet with the commercial launch of its fibre-optic cable network.
The home broadband service, under the AIS Fibre brand, delivers speeds of up to one gigabit a second.
"Even though the local fixed broadband market is said to be saturated, AIS intends to become one of the top three broadband service providers by 2020," said Hui Weng Cheong, chief operating officer of the country's biggest mobile operator.
The expansion is part of AIS's strategic plan to become a digital lifestyle service provider by 2018 rather than just an integrated telecom operator.
AIS has 23,000 3G base stations, and the number is set to reach 29,000 this year under a 40-billion-baht investment scheme.
The company has 120,000 kilometres of fibre-optic cable.
AIS plans to spend 1 billion baht to expand its last-mile fibre-optic cable connections to end-users this year, plus another 4 billion to continue its network expansion over three years.
The company initially will provide fixed broadband service in seven provinces — Bangkok, Chiang Mai, Nakhon Ratchasima, Udon Thani, Khon Kaen, Phuket and Songkhla — reaching 130,000 homes, 500 villages and 700 buildings.
The company plans for the broadband network service to cover more than 10 million households by 2020.
"AIS Fibre expects to have 100,000 customers this year, increasing to 1 million within five years," Mr Cheong said.
Customers will be charged 750 baht a month for 20 Mbps download speeds and 7 Mbps upload speeds.
AIS also provides a 590-baht monthly fixed broadband service with 15 Mbps speed for condominium projects.
Customers can also choose a 1 Gbps package for a monthly fee of 27,990 baht.
All broadband packages include the free AIS Playbox service with more than 100 channels of home entertainment programming.
The AIS Playbox set-top box with built-in WiFi connection converts a conventional TV set to a smart TV via the AIS Fibre network.
Customers can access Hollywood movies and sporting events from company partners such as CTH.
"We also plan to become a quadruple- play multimedia communications company providing services ranging from mobiles and fixed-based WiFi to broadband internet and TV," Mr Cheong said.
AIS chief executive Somchai Lertsutiwong estimates the local fixed broadband market at 50-60 billion baht as of last year, with three major players — True Corporation, TOT Plc and Jasmine International under the 3BB brand.
AIS's fixed broadband service is meant to complement mobile broadband, demand for which is at an all-time high with the rise of data-hungry devices and higher service expectations from users.
AIS shares (ADVANC) closed yesterday on the Stock Exchange of Thailand at 240 baht, down five baht, in trade worth 900 million baht.