Improved network among DTAC’s weapons for return to growth

That growth will be achieved through an intensive network quality improvement, redefining brand purpose to be more relevant to the market and customers’ needs, and by creating new growth engines for the future, Reich said.
DTAC will initially try to grow at the same rate as the industry at a stabilising market share by revenue, she added. Once DTAC is successful in stabilising its market share by revenue, its next step would focus on regaining the lost ground.
DTAC subsidiary DTAC TriNet obtained a 1800MHz licence totalling 2x5MHz bandwidth from the auction in August, and has already made the first instalment payment for the band. It also clinched a 900MHz licence totalling 2x5MHz bandwidth from the auction in October.
Competitor Advanced Info Service (AIS) group currently boasts the largest holding of 120MHz spectrum bandwidth, while True group and DTAC group each hold equal amounts of 110MHz bandwidth.
DTAC will keep investing heavily in network expansion in coming years, said Reich.
According to the recent filing of its third quarter financial results to the Stock Exchange of Thailand, DTAC has revised its full-year 2018 capital expenditures to a range of Bt18 billion to Bt20 billion. That would accelerate the 2300MHz-network expansion. The previous set range was Bt15 billion to Bt18 billion.
The National Broadcasting and Telecommunications Commission (NBTC) intends to auction the remaining seven lots of the 1800MHz licence next year. 
When asked if DTAC will participate in the auction of these remaining lots, Reich pointed to several factors, especially regarding the usage patterns of DTAC customers, that the company needs to consider before deciding whether to participate.
Even if DTAC assumed value in bidding for the lots to increase its customers’ network experience, it would still have to consider whether the auction conditions were acceptable and worth the investment, she said. 
“For some time we have been advocating for the spectrum prices to come down and also for a change in the payment terms – and now it is time to make a change.”
DTAC will also have to anticipate what other spectrum bands will be auctioned in the near future. As NBTC does not have a spectrum roadmap, this remained an uncertainty, she added.
Reich said that as spectrum is the key telecommunication resource, and will have an impact on the country’s development, DTAC requests that the government and NBTC ensure the spectrum supply for industry is both sufficient and competitive. A spectrum roadmap would help investors decide and plan their long-term investments in the right spectrum bands. 
The government’s support is much needed if the country would like to deploy 5G wireless technology in the next two years, Reich added.
The NBTC is aiming to get 5G service off the ground in Thailand in 2020. It recently approved requests from AIS and True to test the 5G technology during November 22 to December 15.
Reich said that there are precedent cases in advanced countries of collaboration between governments and the private sector on 5G deployment, which all parties could use as case studies on how to achieve the policy to implement 5G in 2020.
She added that the related parties should also work together to migrate 2G customers to 3G or 4G. It is also time to sunset 2G, as many other countries are doing, but this needs to be an industry-wide move, conducted by the NBTC.
Reich said that the full potential of 5G is still hugely misunderstood. Unlike 3G and 4G, 5G’s advent won’t simply be a case of telecom operators upgrading their networks and device makers rolling out new phones.
To be effective and sustainable, Thailand’s 5G strategy must engage entire industries, connecting businesses not only to consumers but also to other businesses in entirely new ways.
She said that DTAC sees a pressing need to build robust industry in which 5G can create value for all of Thai society. In that domain, DTAC benefits from the experience and support of its Norwegian strategic partner Telenor, which is leading the pan-European 5G project across four countries. 
In Kongsberg, Norway, Telenor has already begun a full-fledged 5G pilot, with mobile broadband, autonomous vehicles and remote health services.
She said that the availability of new spectra and spectrum pricing for offering 5G in Thailand will need to be carefully reviewed so as to |promote 5G adoption, rather than cripple it.