3G takes most of InTouch's Bt50-bn budget

Executive chairman Somprasong Boonyachai said recently that InTouch itself would launch two businesses this year – wired broadband and the digital content platform.

AIS, the largest cellular operator, was assigned to develop the wired broadband service, capitalising on its 80,000-kilometre nationwide fibre-optic transmission network.

“We call this project Advanced Fixed Network,” he said.

InTouch might be a latecomer to the wired broadband business, as it focused first on wireless broadband, especially for the 3G service.

“But we don’t think it’s too late to capture targeted wired broadband customers nationwide. We have AIS’ existing subscribers as a potential market base for this new business and aim to provide this service to their offices, condominiums and homes,” he said.

The cost of deploying wired broadband is about Bt1 billion for the connection between AIS’ fibre network and offices and homes.

“AIS will be a holding company for the wireless and wired businesses,” he said.

According to AIS’ filing to the Stock Exchange of Thailand in the third quarter of last year, it maintained its investment plan of Bt70 billion for the 2013-15 nationwide rollout of the 3G-2.1GHz network, of which about Bt19 billion had already been spent in the first nine months of 2013. AIS’ subsidiary Advanced Wireless Network (AWN) holds the 3G licence.

InTouch expects to spend about Bt100 million this year on converting conventional TV content to the digital format for digital TV and mobile phone operators.

Somchai Lertsutiwong, AIS’ chief marketing officer, said AIS might revise its forecast for revenue growth of 7-8 per cent this year, in response to the present economic and political situations.

AIS’ revenue growth target is ambitious, considering that the industry is estimated to expand only 4-5 per cent.

AIS is expected to acquire about half of the estimated 7 million-8 million new mobile phone subscribers this year.