Mobile leader Advanced Info Service (AIS) is embarking on insurance brokerage, digital advertising and nanofinance ventures through their partners to ensure sustainable revenue growth.
Insurance brokerage and digital advertising are set to be launched this year, while nanofinance is being studied by three bank partners.
Mobile business generates some 85% of total revenue for the company. Another 5% comes from its fixed broadband service under AIS Fibre and the rest is enterprise business.
Somchai Lertsutiwong, chief executive of AIS, said the contribution from mobile service would drop to 70% in three years, with the remainder coming from AIS Fibre, enterprise business and new businesses.
By 2024, the proportion of the company's mobile service revenue is expected to drop to 50% per year -- equal to the combined revenues of fixed broadband, enterprise business and digital businesses.
"AIS will mark 30 years in business on Oct 1, and we plan to transform to a digital life service provider through innovation business and organisational culture dealing with digital disruption and changing customer behaviour in the new economy," said Mr Somchai.
The firm, he said, has been focusing more on digital platform development to capitalise on both the digital impact and changes in lifestyle.
As for the insurance foray, Mr Somchai said AIS would be a data analytics platform for partners.
The company will also serve as a sales unit for insurance services by explaining products and services to customers and collecting money from insurance holders. AIS was awarded an insurance brokerage licence last year.
AIS is in talks with digital TV channels for partnership in the digital advertising business, and is expected to begin trial tests by the end of this year, he said.
Under this arrangement, AIS would air TV programmes of partners via AIS Playbox and applications, and manage all advertising activities on the broadcasting schedule on AIS Play during the airing of programmes.
"The advertising lists via AIS Play will be based on our data analytics that would precisely target the consumer segment for each programme," said Mr Somchai.
As of March, AIS had 41.5 million mobile subscribers nationwide. The company has developed its data analytics platform for years.
Regarding nanofinance business, AIS aims to provide data analytics for partners so banks can make better decisions with regard to providing loans for borrowers, he said.
Mr Somchai stressed AIS would not serve as a nanofinance operator but handle related services with banks' permission.
Nanofinance operators can provide loans only for occupational purposes, with a lending limit of 100,000 baht per borrower and a ceiling interest rate of 36% a year. They can provide lending services across the country.
"Insurance, digital advertising and nanofinance would be the first batch of initiatives, along with digital platform development," he said.
The company also initiated the AIS IoT Alliance Program to enhance people's skills on Internet of Things. The project, which was launched last year, has drawn more than 1,000 participants, including those from government and private sectors.
Mr Somchai said AIS ushered in the Novel Engine Execution Team, members of which would be responsible for incubating internal startups and preparing employees at all levels to deal with the challenges of digital transformation.
The "Aunjai Cyber for Thai Children" project aims to create protection campaigns, raise awareness and develop an online content system to filter out inappropriate content, he said.