AIS offers high-speed fibre optics broadband for Bt990
ADVANCED Info Service yesterday launched a flagship fibre-optics broadband service promising download/upload speeds of 100/10 megabits per second for less than Bt1,000 per month. AIS targets revenue next year of Bt2 billion to Bt3 billion, a significant jump from the Bt1 billion estimated for this year, and aims for a 10-per-cent share of the broadband market.
After debuting the fibre-optics broadband service in April 2015, AIS Fibre aims to have 300,000 subscribers by the end of this year. It has set a conservative target of 400,000-500,000 new subscribers in 2017.
Saran Phaloprakarn, senior vice president of AIS for fixed broadband, said AIS Fibre currently had only 4 per cent of the total fixed-broadband market, which now boasts a penetration rate of 32 per cent.
AIS wants to become No 2 in this segment by 2020 with at least 2.5 million subscribers, which translates to around 25-30 per cent of the market. By 2020, it expects that fibre-optics broadband will surpass ADSL service.
“Currently, 70-80 per cent of fixed broadband is ADSL-based. Fixed broadband now reaches around 32 per cent of households,” Saran said, adding that this penetration rate was expected to increase to 46 per cent in five years, “with the market led by fibre rather than ADSL”.
AIS plans to invest Bt7 billion next year on expanding its optical-fibre broadband service, about the same as this year. In the first half of 2017, it will concentrate on increasing the density of its existing coverage in 28 provinces. In the second half, it will invest in expanding its coverage areas into urban areas nationwide.
“AIS Fibre will be the cash-cow business for AIS,” Saran said.
He said fibre-optics broadband would become the norm, since AIS Fibre offers download speeds of 100Mbps for less than Bt1,000 per month. He said this would attract many more subscribers to AIS.
He said the move was meant to address consumers’ needs. People now use multiple devices every day, which requires a high-speed Internet connection in the home.
“Our latest market survey revealed that customers want fast speeds and consistency inside and outside their homes. They are familiar with 4G speed while commuting and working outside the house, and thus expect a speed of no less than 20-30Mbps when they come home.
“It is evident that modern families tend to use multiple devices including smartphones, tablets and notebooks.
“This is not a price war; Bt990 per month for 100Mbps is a reasonable price,” Saran said.
In the new batch of AIS Fibre packages, 100/10Mbps is the flagship service for which the company aims to acquire more subscribers. It costs Bt990 per month for AIS mobile users, and Bt1,100 per month for non-AIS users.
AIS also offers a package with a connection speed of 30/10Mbps for Bt750 per month, 50/10Mbps for Bt888 a month, and 200/10Mbps at Bt1,888 per month.
