The White Space enters growing MVNO market

The White Space enters growing MVNO market

Executives of The White Space join to launch the new Penguin SIM brand. (Photo supplied by the company)
Executives of The White Space join to launch the new Penguin SIM brand. (Photo supplied by the company)

The hyper-growth phase of the mobile phone market has attracted a newcomer, The White Space.

Founded by a group of former executives of Total Access Communication Plc (DTAC), the company is to provide mobile services on CAT Telecom's cellular network under a mobile virtual network operator (MVNO) business model.

"Thailand's mobile market still has opportunities for newcomers with differentiated products and services to entice customers," said Chaiyod Chirabowornkul, chief executive of The White Space.

The White Space, with registered capital of 421 million baht, is to provide affordable mobile service under the Penguin SIM brand.

Target customers are factory workers, motorbike drivers and university students who spend an average of 100-200 baht a month on mobile services, said Mr Chaiyod.

Chief marketing officer Pakorn Pannachet said the local MVNO market presented a wide range of opportunities for operators because of CAT Telecom's greater mobile network coverage and skyrocketing demand for mobile data.

CAT has 15,000 3G base stations on the 850-megahertz spectrum.

The White Space plans to spend 100 million baht building its brand awareness this year, especially through online media and online top-up machines.

"We expect to have 300,000 to 500,000 customers in the first year of operation, and we are expecting to break even by 2017 with 900,000 users," Mr Pakorn said.

The company charges users only one satang per second for calls to all networks with no minimum charge.

The company will charge 25 satang per megabyte, or one baht for 4MB, for data service. Customers will be charged 20 baht for unlimited data usage all day with no general speed limit. Its average internet speed is 512 kilobits per second.

Customers can top up only 20 baht for call credit compared with 50 baht required by major operators.

Mr Chaiyod said MVNO companies had lower investment and operating costs than conventional mobile operators because they need not invest heavily in a cellular network while they can also share their billing systems with the network owner.

CAT now has four MVNOs providing mobile services on the state enterprise's cellular network under the My brand. They are Real Move, a subsidiary of True Move; 168 Communications; Data CDMA Communication; and The White Space. Tesco Lotus will be CAT's fifth MVNO.

CAT expects to have six MVNOs by year-end, with around 2 million customers, up from 1.5 million in 2015.

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