Nature of Business

AIS and subsidiaries provide mobile telephone services on 900 MHz and 1800 MHz based on GSM technology

In 1990, AIS entered into the 25-year BTO contract with TOT Corporation Public Company Limited (TOT) to operate and service of 900 MHz GSM Network. The terms of the agreement required AIS to build and raise capital for investment in the cellular network and transfer the network ownership to the TOT and also entitled to share its revenue from service to the TOT at 30% of postpaid revenue, and 20% of prepaid revenue.

Digital Phone Co., Ltd. (DPC) operates on another frequency at 1800 MHz using GSM network. Under a 16-year BTO contract with CAT Telecom Public Company Limited (CAT), started in 1997 and will end in 2013, DPC is required to pay revenue share to CAT, currently at the rate of 30% of its revenue from its mobile phone operation. DPC also has a network roaming agreement with AIS to enable nationwide service to both the GSM 1800 customers as well as the GSM 900 customers in order to provide better network service quality for both networks.

Bridge Mobile Pte. Ltd. (BMB) provides international roaming services across 217 countries to serve the customers with the boundless connectivity service. AIS also gives a better roaming service and privileges by taking part in Bridge Alliance, a partnership with 11 leading mobile operators in Asia Pacific.

AIN GlobalComm Co., Ltd. (AIN) provides an international direct dialing call or IDD service over 240 destinations by dialing prefix 005 and 00500.

Nowadays, an unceasing technology development has result in changing Thais lifestyle.

In July 2011, AIS introduced a new era of mobile internet with over 1,884 base stations of 3G on 900 MHz, covered Bangkok, vicinity, and 9 strategic cities. Also, by joining hands with a strategic partnership, Jasmine International Plc., over 70,000 WiFi hotspots was launched at speed up to 6 Mbps. Moreover, AIS expanded nationwide coverage of EDGE Plus as AIS witness the benefit for customer after it was upgraded in 2010. EDGE Plus technology supports maximum data upload speed of 236 kbps (50% higher than EDGE) and download speed of 296 kbps (30% higher than EDGE) while provides simultaneous voice call and data connection.

MIMO Tech Co., Ltd. (MMT) operates as a data content aggregator or a pool of content and application which will support various services of AIS and other subsidiaries from the growing consumer demand on mobile data.

Advanced Wireless Network Co., Ltd. (AWN) provides telecommunication services, network and computer system services.

Super Broadband Network Co., Ltd. (SBN) offers data service on a fixed line facility which offered various services e.g. an internet (ISP), international & national internet gateway, International Private Leased Circuit (IPLC), Internet Protocol Virtual Private Network (IP VPN), a voice over IP, and an IP television.

Advanced Datanetwork Communications Co., Ltd. (ADC) offers a datacommunication service via a telephone line network and an optical fiber service which offer varied services that include web hosting, data back up and integrated internet services.

Advanced Contact Center Co., Ltd. (ACC) is the key differentiation for AIS as its services evolved from simple aftersales and customer service maintenance to an increasingly proactive and customer-oriented approach, including promoting new marketing campaigns and suggesting new products and services to both existing and new customers. Also, AIS is attentive to the special needs of the disabilities customers. AIS call center developed “iSign”, a webcam service which uses sign language to communicate with hearing-impaired customers. To better serve AIS customer, AIS also provides customer support via “iCall”, our online webcam call center through chat or VOIP, and social networking i.e. Pantip webboard, Facebook, Twitter.

AIS developed service for financial transactions via mobile phone named “mPAY” through Advanced MPAY Co., Ltd. (AMP). AMP received a license from the Bank of Thailand (BOT) to provide payment service based on the electronic cash card. mPAY covers many daily-life transactions including bill payment, online shopping, recharge of prepaid phone credit, online game credit refill as well as payment for goods and services. The electronic transaction has become popular as it provides more prompt and convenient service to customers.

Wireless Device Supply Co., Ltd.(WDS) sells and distributes handset, SIM cards, and refill cards through over 950 authorized dealers nationwide. As the smart phone adoption continues to grow, handset business is a crucial complementary business to the operator growth particularly for nonvoice segment.

Competition and industry outlook

Non-voice services are the growth engine

Year 2011 marked a changing phase of competition as non-voice services became widely available and were the focal point of competitive focus, while there was little competitive movement in the voice only market. The economy improved throughout the year whereas demand for mobile data grew outstandingly. Consequently, the telecom industry posted an impressive total revenue growth of 10% YoY, with continually voice revenue growth and more than 30% growth of non-voice revenue.

During 2011, even though there was some organic growth outside of Bangkok, overall growth in voice market was relatively subdued as it reached saturation with a high mobile penetration rate of 109%. Consequently, to drive and capture market growth, operators turned their attention to focus on the growing importance of the non-voice market. In 2011, non-voice services represented almost 20% of service revenue, compared to lower than 17% in 2010 and lower than14% in 2009. In 2012, we believe that non-voice growth will gain significant momentum, especially as operators move to opening up regional markets. 

Low Capex cycle while waiting for the new 3G licenses

In 2011, Thailand’s mobile industry took a step nearer to the future by introducing 3G services in many areas and strengthening WiFi connectivity in high traffic locations. Although competition in the data market was very upbeat, price competition remained low key. Operators aggressively launched several marketing campaigns to attract customers, and competed to claim data network coverage in Bangkok and other key strategic cities throughout Thailand. Despite higher Capex compared to 2010, operators continued to preserve financial liquidity for the upcoming 2.1GHz license auction, resulting in a low Capex level in 2011. In late 2011, the National Broadcasting and Telecommunications Commission (NBTC) has issued three draft master plans designed to manage and administer the key areas of frequency, telecom and broadcasting. These plans will go to public hearing in early 2012. Meanwhile, the NBTC also appointed a subcommittee to consider the forthcoming 3G auction, which is likely to take place in 2H12.

Moving to the new era of mobile industry amidst rising competition in non-voice market

Products and Services Now

we are ready for THAICOM 6 and 7 as the full utilization in THAICOM 5 and higher demand in THAICOM 4THAICOM was granted the 30-year satellite agreement for the operation of domestic communication satellite from the Ministry of Information and Communication Technology (MICT), expiring in 2021, to operate two satellites namely THAICOM 4 (IPSTAR) and THAICOM 5.

THAICOM 4 (IPSTAR) offers a variety of the high-speed broadband satellite solutions via Internet Protocol (IP) network throughout the Asia-Pacific Region. THAICOM 4 (IPSTAR) uses beehive wave distribution technology, thus enabling efficient frequency reuse with massive bandwidth capacity of up to 45 Gbps. The technology has enabled THAICOM to cater to millions of high speed Internet users, from individual subscribers to corporate users, including Internet and telecommunication service providers.


THAICOM 5 is a conventional satellite, offering end-to-end satellite solutions to both Thai and foreign customers. As the full utilization of THAICOM 5 presently, THAICOM now is going to launch THAICOM 6 and 7 satellites in the near future.


In May 2011, THAICOM received approval from the Ministry of Information and Communication Technology (MICT) to build and launch the THAICOM 6 satellite. THAICOM 6 will meet the increasing demand for satellite services and transponders in Asia and Africa and serve as a viable replacement for existing satellites in the region which have reached their end of life. THAICOM 6 will be placed at the Company’s prime orbital slot of 78.5 degrees East and colocated with THAICOM 5 to support the robust market growth. THAICOM 6 is a three-axis stabilized type medium-size satellite with a total of 26 transponders: 18 C-band and 8 Ku-band. THAICOM expects to launch the THAICOM 6 satellite into orbit around the second quarter of the year 2013.


In December 2011, THAICOM entered into a cooperation agreement with Asia Satellite Telecommunications Co., Ltd., to preserve the 120 degrees East orbital slot and to develop and build a satellite to provide satellite services in order to improve the Company’s earnings in the future. The satellite is a mediumsize satellite with a total of 28 C-band transponders, and will serve markets in Asia and Australia. THAICOM will own up to 14 transponders and operate the satellite under the name THAICOM 7. It is expected that the THAICOM 7 satellite will be completed and launched into the 120 degrees East orbital slot in 2014.

Enhance to satellite reception dish (DTV) and Internet-related business


DTV Service Company Limited (DTV) sells Ku-band satellite reception dishes which can be directed at the THAICOM 5 satellite to receive broadcast transmissions. Customers may buy the equipment as a set (dish and box) or opt for only the IRD box. Compact in size and relatively inexpensive, the dish offers viewers an opportunity to view a wide variety of TV channels, including free-to-air and education channels.

CSLOXINFO Public Company Limited (CSL) provides Internetrelated businesses under the satellite agreement for the operation of domestic communication satellite from CAT granting it the exclusive license to provide television transponder services via satellite and internet for 22 years, expiring in 2016. CSL has major services including Internet services via Leased Circuit/Leased Line, High-speed Internet services via telephone line (ADSL), High-speed Internet services via satellite network (IPSTAR), and Internet services via telephone line (Dialup), Internet Data Center (IDC), Internet value added services, VoIP service, and Uplink/ Downlink services.

Regarding media services, THCOM has investments through Teleinfo Media Public Company Limited (TMC), a subsidiary of CSL. TMC publishes and distributes the White Pages and Yellow Pages Telephone Directory and operates call center for directory enquiries plus general and entertainment information via 1188 and 1900 222 xxx.

Shenington Investment, THAICOM’s partner in international business

THAICOM offers telephone services through its investment in Shenington Investments Pte Ltd. (SHEN), a holding company registered in Singapore. The two subsidiaries under Shenington are Mfone Company Limited, and Lao Telecommunications Company Limited.

Mfone Company Limited (Mfone) was granted a 35-year concession from the Government of Cambodia, expiring in 2028, to provide fixed-line phone service under CDMA 450 system, mobile phone under GSM 900 MHz/1800 MHz, and UMTS or 3G 2100 MHz systems, international calling and internet. Mfone also provides VoIP international calling service, an economical service pack via Internet for cellular and fixed-line phone users.

Lao Telecommunications Company Limited (LTC) is a joint venture between the Government of Lao PDR (51%) and SHEN (49%). LTC has a 25-year license, expiring in 2021, to provide comprehensive telecommunication services for Laos using the latest digital technology including fixed-line (PSTN and CDMA-200 1X 450 MHz) and mobile (GSM 900/1800 MHz and 3G networks), international calling and Internet.

Industry and Competition

Conventional Satellite

In general, each communication satellite is designed to address specific markets due to certain limitations of orbital slot, frequency coordination, regulation, and investment budget. As a result, not all satellites compete directly with each other, with the possible exception of satellites with global footprints that cover many regions. THAICOM has positioned itself as a ‘Hot Bird’ with its prime orbital slot at 78.5 degrees East, and strategically is a key player in Asia’s broadcasting industry – in terms of the number of viewers and TV channels under the satellite platform.

In 2011, THAICOM focused on both the domestic and international broadcasting markets, resulting in dramatic business growth. The total number of TV channels broadcast via the company’s conventional satellite increased from 358 in 2010 to more than 420 at the end of 2011.

In 2012, THAICOM will continue with its ‘Hot Bird’ strategy, and focus on providing end-to-end satellite TV solutions to customers. The creation of value-added services will also assist customers in their business operations. In addition, THAICOM will focus on prelaunch sales of THAICOM 6 capacity.

Broadband Satellite – IPSTAR

By the end of 1Q11 there were an estimated total of 540.69 million broadband subscribers worldwide, accounting for 2.9% growth from last quarter, or an overall year on year growth of up to 12% (www.pointtopic. com). Asia-Pacific accounted for 13% of world broadband subscribers for 1Q11, this is the 4th largest share after Southeast Asia (28.9%), Western Europe (22.5%), and North America (18.4%).

In terms of absolute numbers of broadband subscribers, Asia-Pacific has also made remarkable progress in the past few years with the number of broadband subscribers growing almost sevenfold in six years, from 27 million in 2003 to 187.3 million in 2009. For the first quarter of 2011, the number of net additional subscribers increased by 6.44 million (42.3% of total), up from last quarter’s gain of 4.68 million, with China (including Hong Kong and Macau) accounting for a majority of this increase.

On average, 70% of the population in developing countries within the region lives in rural areas. At present, satellites are primarily used for broadcasting, and particularly to provide communication links to rural and remote areas where no network infrastructure is available. A widening digital divide between urban and rural areas still exists in some countries; however, due to the region’s fast-growing population, economy and Internet penetration, service providers in countries like Malaysia, Philippines, Vietnam and Myanmar are now expanding telephony and broadband services to remote and isolated areas.

Thailand continues to show strong growth in the Internet market, with 18.3 million Internet users from a total population of 66.72 million people. This translates into a penetration rate of approximately 27.4%. Thailand ranks ninth in terms of overall number of broadband internet subscribers for countries within Asia. (Source: http:// www.internetworldstats.com)

However, the ITV’s Agreement was revoked by the Prime Minister’s Office on 7 March 2007 on the ground that ITV did not pay the shortfall fees including interest and fine. The Prime Minister’s Office also ordered ITV to transfer back the assets under BTO Agreement. Hence, ITV had to cease the operation of the UHF system television station. Then, the parties entered into dispute resolution process by arbitration.

Matchbox Co., Ltd. (MB)’s major activities centered on advertising and production services, producing advertising materials and coordinating media, including television, newspapers, radio, advertising signs and websites. MB also organized event marketing for customers to build up end-user feelings toward products and impress them with the product quality. In 2011, according to Nielsen Media Research, the total advertising expenditures in Thailand amounted to Baht 103.8 billion, slightly increased by 2.8% from 2010. This is mainly due to the slower consumption and the global economic slowdown.