DTAC ups 3G stake for rapid network expansion

In its first-quarter filing to the Stock Exchange of Thailand this week, DTAC reported that its capital-expenditure budget remained at Bt34 billion to achieve 80-per-cent coverage by 2015, one year earlier than required by the National Broadcasting and Telecommunications Commission (NBTC). 

For this year, the cellular operator has maintained its targets of high-single-digit revenue growth and EBITDA (earnings before interest, taxes, depreciation and amortisation) margin of 30-31 per cent. 

DTAC’s subsidiary DTAC Network, Advanced Info Service subsidiary Advanced Wireless Network and Real Future of True Corp are the three holders of 2.1GHz licences, which oblige them to cover 50 per cent of the population within two years of obtaining the licences last December, rising to 80 per cent within the following two years. Their services are expected to be launched this quarter.

The NBTC last week approved the draft infrastructure-sharing regulations, aiming to support the rapid countrywide deployment of the 2.1GHz networks. 

DTAC intends to finance the Bt34-billion capex budget with debt. Its policy is to keep its net debt-to-EBITDA ratio at about 2 times and pay quarterly dividends at a minimum of 80 per cent of net profit.

Chief executive officer Jon Eddy Abdullah said the company continued to see strong growth in smart-phone adoption and Internet access, which supports the incremental 3G-network capex budget.

DTAC’s revenue from value-added services continued its strong momentum in the first quarter, increasing 49.6 per cent year on year to Bt5 billion. The major contributor remained mobile Internet usage on the back of the continued popularity of smart phones and social applications and its expanded 3G coverage on 850 megahertz.

In the first quarter, its subscriber base reached 26.6 million and its net profit climbed 1.1 per cent year on year to Bt3.03 billion.