AIS to scale down expansion spending

AIS to scale down expansion spending

Commuters check mobile devices on an underground train. Mobile provider AIS is scaling back spending on network expansion. APICHIT JINAKUL
Commuters check mobile devices on an underground train. Mobile provider AIS is scaling back spending on network expansion. APICHIT JINAKUL

After spending 40 billion baht a year for network expansion between 2015 and 2017, the country's largest mobile operator, Advanced Info Service (AIS), plans to scale down related spending to 24 billion baht next year.

"Investment in network expansion for 2018 will focus primarily on boosting the density of capacity in each area, especially those with considerable data consumption," said chief executive Somchai Lertsutiwong.

The network capacity of AIS already spans 98% of the country's population via 3G and 4G wireless broadband networks, Mr Somchai said, adding that the budget for network expansion is flexible depending on real demand and business ecosystems.

"Network expansion is a critical consideration for operators in the near future, due to the arrival of fifth-generation (5G) wireless broadband," he said.

The commercial launch of 5G wireless broadband in the global market is expected by 2020. The technology can provide data rates up to 100 times faster than 4G, creating opportunities for Internet of Things innovations, augmented reality and virtual reality applications, smart vehicles, remote healthcare, and robotics.

As of September 2017, AIS had 40.2 million subscribers, 32.9 million of whom were prepaid subscribers and the rest postpaid.

The proportion of AIS customers using 4G handsets reached 42% in September, up from 24% in the year-earlier period.

Data users accounted for 58% of total subscribers in September 2017, up from 57% in September 2016.

Nationwide, AIS had 48,100 base stations for its 3G network and 54,300 for 4G in September.

The company has upload and download slots totalling 40 megahertz of bandwidth for providing service to its customers, comprising 15MHz on the 2100MHz spectrum, 15MHz on the 1800MHz spectrum and another 10MHz on the 900MHz spectrum.

AIS, through Advanced Wireless Network (AWN), has also teamed up with state telecom TOT to provide services on 15MHz of bandwidth of TOT's 2100MHz spectrum.

Mr Somchai said AIS now has enough bandwidth to provide service to its customers for the next two years.

But acquiring more spectrum is needed for all mobile operators in order to ensure sufficient traffic to serve consumer demand, especially in the digital era.

"We are interested in the next auction of the 1800- and 850MHz spectra that the regulator has scheduled for next year, but we have to study the auction's draft and conditions first," Mr Somchai said.

Meanwhile, AIS through subsidiary AWN yesterday gave the second payment for its 1800MHz licence to the National Broadcasting and Telecommunications Commission, worth 10.9 billion baht.

AWN won the second slot (1725-1740MHz and 1820-1835MHz) of the 1800MHz auction in 2015 with a winning price of 40.9 billion baht.

The payment is divided into three instalment terms. The first in 2016 totalled 50% of the winning price, with the second and the last covering 25% each.

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