AIS still in good position: S&P
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Advanced Info Service may face fiercer competition as a result of the 4G licence auctions, but Standard & Poor's Ratings Services is of the view that the company's finance and market position would be maintained in the next few years.
AIS failed to win a licence in the auction of two licences for the 900MHz spectrum which was concluded last Friday, but it won a licence from the previous auction for the 1800MHz spectrum. AIS stated that the bidding price for the 900MH spectrum exceeded the level that they were willing to pay. The company intends to maintain its service competitiveness through strategic efforts, including enhanced site density and business partnerships, while planning to bid at other upcoming 4G auctions.
The company's share price today suffered from a 19.43 per cent plunge in share price. The price fell by Bt37.50 to Bt155.50.
Standard & Poor's today maintained its corporate rating for the telecom copmany, saying it would not be immediately affected by likely increased competition in Thailand's telecom market.
The rating agency expects to AIS to maintain its sound financial standing over the next few years.
"Following the 4G auction, we expect intensified competition in Thailand's mobile telecom market, where AIS has a leading market position. Jasmine, a fixed broadband service provider, is a new entrant in the mobile business. True Corp, the third-largest operator, is also expected to strengthen its competitive position, given it has the most spectrum (2100MHz, 1800MHz, and 850MHz) of all the three existing players. Higher competition could lead to stronger pricing pressure, in our view," the rating agency said.
Failing to win any of the four licences from the two auction, Total Access Communication also witnessed a 26.97 per cent decrease in share price, which ended the day at Bt27.75.
Jasmine International's share price also plunged by 22.59 per cent to Bt3.70, while True Corp's share price dropped by 8.97 per cent to Bt6.60.
Both won the two licenses for 900MHz for the combined value of nearly Bt152 billion. JAS won Lot 1 licence with the bid worth Bt75.65 billion. Meanwhile, True won Lot 2 licence with the bid worth Bt76.3 billion.
AIS and True won the licences for the 1800MHz at the combined price of Bt80.78 billion.
