Fixed broadband Internet competition to heat up as AIS enters fray

True Corp and TOT said they are ready to defend their market shares.
CAT Telecom will also relaunch its FTTX (fibre to the x) broadband Internet service in the second half of this year.
True has 2.1 million broadband Internet subscribers nationwide, while Triple T Broadband has 1.6 million and TOT 1.5 million.
Pratthana Leelapanang, executive vice president for AIS, said last week that they plan to launch the service next month in seven major provinces, including Bangkok, after a trial run of a few months.
AIS sees huge opportunity in the market, as there are only 6 million broadband Internet households out of the total of 22 million households in the country.
AIS claims that its FTTX network already covers all major buildings, condominiums and housing estates in Greater Bangkok.
According to AIS’ filing to the Stock Exchange of Thailand on its 2014 financial performance, the company is extending its fibre-optic network to support both its mobile and fixed broadband businesses. The target is 80,000 fixed broadband Internet subscribers within one year.
The service will help AIS boost its combined wireless and wireline service revenue per subscriber, he added.
A telecom industry observer said the leading cellular operator, AIS, has to enter the fixed broadband Internet market to offer convergent services to its customers.
Last month, Manut Manavuthiveth, chief commercial officer of the True Online wireline business group of True Corp, said this year the group expects new broadband service operators to lift subscriber numbers by about 25 per cent, and True hopes to secure half of the new ones.
True’s broadband Internet service aims to have a base of 2.4 million home customers this year, up from 2.1 million at present, through the launch of new fixed-line mobile convergence services.
True Corp has said it would spend Bt33 billion on the expansion of its fixed-line broadband network nationwide this year to reach 10 million households next year.
A telecom analyst said the fixed broadband Internet market is very challenging since network expansion and payback take time. The investment per subscriber is Bt20,000 and it takes 30 months to recoup this cost.
Pratthana is confident that even though AIS is new in the fixed broadband market, it is entering at the right time.
The telecom industry observer said TOT might be a loser in this battle, due to the further delay of its FTTX network expansion.
However, Chao Punrungchitti, senior executive vice president of TOT, said TOT will protect its market share by offering packages bundled with content and new services to existing users.