for thailand telcos spread

Presentation by Yozzo Co.,Ltd. www.yozzo.com March 2015 V 1.0

Presentation by Yozzo Co.,Ltd. www.yozzo.com March 2015

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Subscribers Growth rate Subscribers Growth rate Subscribers Growth rate

2009 65,952,313 1.98% 7,050,943 1.24% 58,901,370 2.07%

2010 71,726,300 2.92% 7,256,473 2.01% 64,469,827 3.03%

2011 77,449,466 1.65% 7,938,934 3.70% 69,510,532 1.42%

2012 84,001,947 3.47% 9,782,683 6.60% 75,229,728 3.07%

2013 93,848,536 3.03% 11,591,587 5.55% 82,256,949 2.38%

2014 97,680,775 2.04% 12,852,830 3.97% 84,827,945 1.76%

Source: Operators | NBTC * Estimated information for Q4 Year 2014.

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0

20.000.000

40.000.000

60.000.000

80.000.000

100.000.000

120.000.000 www.yozzo.com



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2009 98.58% 10.54% 88.04%

2010 106.56% 10.78% 95.78%

2011 114.58% 11.74% 102.83%

2012 127.85% 14.71% 113.14%

2013 140.59% 17.36% 123.22%

2014 145.79% 19.18% 126.60%

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Source: Operators | NBTC *Estimated information for Q4 Year 2014

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Blended 245 205 204 200 194 211 197 188

Post-Paid 693 586 582 582 580 621 606 562

Pre-Paid 197 164 162 160 158 158 140 131

Average Revenue Per User (Excluded Interconnection Charge) 1.00 THB = $0.0304220

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Blended 319 251 253 257 236 240 267 246

Post-Paid 648 539 486 477 400 375 456 367

Pre-Paid 277 217 226 233 217 220 241 228

Mobile MOU (Minute/Month) 2007 Q4 20141.00 THB = $0.0304220

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Revenue per/minute Q3 2013 Q4 2014

0.48 0.45 0.49 0.44 0.43

0.45 0.44 0.45 0.43 0.44

0.33 0.31 0.29 0.30 0.29


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In 2013 Thailand set the world record in migrating 2G subscribers to 3G, with migration taking even less time than in Japan.

30% of Thailands existing 95 million 2G customers shifted to 3G in only five months.

Today AIS has 40.8 million 3G users out of 44.3 million total subscribers.

DTAC has 20.2 million 3G users out of 28 million total subscribers.

True Move claims 21.9 million 3G users out of 23.6 million total subscribers.


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TrueMove H was the first to introduce 4G LTE in Thailand with a trial service in February 2013 offering up to 100 Mbps and 50 Mbps download and upload speeds respectively. DTAC followed later as the second mobile operator to offer 4G services. AIS does not provide 4G.

Today AIS has ZERO 4G subscribers.

DTAC has 600,000 4G subscribers.

True Move claims 800,000 4G subscribers.


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46,52%

28,50%

24,26%

0,15% 0,57%

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Estimated information for Q4 Year 2014


Source: AIS 2014

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Subscribers Q4 2014 4,940,700 39,360,600 44,301,300

Subscribers Q3 2014 4,786,700 39,008,500 43,795,200

Net additions Q4 2014 154,000 352,100 506,100

Net additions Q3 2014 125,600 791,400 917,000

ARPU Q4 2014 608 THB 170 THB Blended 216 THB

MOU Q4 2014 373 256 Blended 269 Min

1.00 THB = $0.0304220

92% of total subscribers 22m using 3G devices

77 provinces 97% coverage

Non-voice grew 5% QoQ Non-voice grew 34% YoY

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Source: dtac 2015

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Total as of Q4 2014 3,850,000 24,159,000 28,008,000

Total as of Q3 2014 3,746,000 24,033,000 27,780,000

Net Additions Q4 2014 347,000 -281,000 66,000

Net Additions Q3 2014 88,000 -347,000 -259,000

ARPU Q4 2014 ex. IC. 586 THB 147 THB Blended ex. IC. 202 THB

MOU Q4 2014 ex. IC. 267 183 Blended ex. IC. 194

11,000 2G sites 11,000 3G sites 3,000 4G sites

72% of sub base ported to 3G Mobile internet grew 35%YoY 600,000 4G subscribers

Smartphone penetration 48% Mobile data users 14.1 million.

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1.00 THB = $0.0304220


Source: True Corporation

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True

Total as of Q4 2014 N/A N/A 23,600,000

Total as of Q3 2014 3,672,000 19,767,000 23,440,000

Total as of Q2 2014 3,452,000 19,743,000 23,195,000

Net Additions Q4 2014 N/A N/A N/A

ARPU Q4 2014 N/A N/A 144 THB

1.00 THB = $0.0304220

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4G LTE 2100MHz Trial 3G on 850, 2100 MHz 2G 1800 MHz

Revenue increased 24.0% YoY. Mobile Internet rose to 82.3%

of non-voice revenue

93% of total subscribers are on 3G or 4G.


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2,971,326 2,715,712

19.30%5.26%

Metropolitan Provincial Area

Metropolitan Provincial Area


Source: NBTC *Estimated information for Q4 Year 2014

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5,687,038

97,680,775

Fixed

Mobile


Dial-up modem,

ISDN

Wireless Mobile

2G, CDMA, GPRS

ADSL, VDSL,

Satellite, FTTH

Wireless 3G mobile

WCDMA, EV-DO-

7,126,400 3,4% 8.9% 45% 40.3% 2.4%

1,502,900 3.0% 3.4% 56% 35.6% 2%

2,458,000 3.4% 8.5% 42.7% 42.7% 2.7%

1,064,800 2.6% 9.3% 49.4% 37.9% 0.8%

1,253,100 4.1% 13% 37% 43.4% 2.6%

847.500 3.6% 13.4% 38.8% 40.1% 4.1%

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Source: National Statistical Oce of Thailand Survey 2014


Source: Thai Network Information Foundation | National Statistical Oce of Thailand | NBTC | NECTEC

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Internet Users: 26,140,473, Internet Penetration: 39.06% Internet Broadband: 5,687,038 Subscribers

Broadband Penetration per Population: 8.20% Broadband Penetration per Household: 27.36% Price/Kbps = 0.10 THB

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3.204.499

3.822.354

4.351.909

4.930.419

5.491.095

0

1.000.000

2.000.000

3.000.000

4.000.000

5.000.000

6.000.000 www.yozzo.com

Source: ISP | NBTC


Source: Millward-Brown AdReaction-2014

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Tablet

Television

Laptop

MobileExcl. SMS/Calls

Thai consumers spends 3.1 hours of his/her daily media routine via their mobile device. (Excl. SMS/Voice)

#1 MOBILE

minutes

minutes

minutes

minutes

The average user in thailand consumes 7.4 hours of media per day

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Thailand has the 3rd. largest Facebook population in the world with 30 million users and Bangkok has more Facebook users than any other city in the world. 93% of Thai Internet users access Facebook every week, compared to 47% globally, and 19 million, access Facebook through their mobile device.

4.5 million Twitter accounts and 1.7 million Instagrammers.

81% of smartphone users in Thailand have downloaded and use mobile chat apps for daily communication.

1011010101101010110111101110011011011000

We ARE

SOCIAL

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LINE users in Thailand (Oct. 2014)

Top 5 Social Network usage Facebook 93% Line 87% Google+ 34.5% Instagram 34% Twitter 16.1%

Source: ETDA/MICT | LINE | Facebook | 2014


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Source: Nokia Solutions and Networks (Thailand).

of mobile data per month


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10110101011010101101111011100110110110003GB

Average video consumption for mobile video users is 3 GB per/month

Thailand's smartphones users are avid video watcherswith 53% watching video at least once a day


Source: YouTube/Google

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Traffic on YouTube via mobile devices has jumped more than six-fold over the past two years.

Traffic via mobile device

11%

Traffic via mobile device

43% Thailand has the 2nd highestamount of YouTube views in Asia

1. Japan2. Thailand3. India

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50% of Thailands YouTube viewers browse the internet while watching TV, with 22:00 (10pm) as the peak viewing time.


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Source: IDC Thailand

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Source: Nokia Solutions and Networks (Thailand).

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After March 1, 2015 - all airtime call packages must be billed on per-second basis. The average charge for 2G service must not exceed 0.99/per minute. For 3G on the 2.1 GHz

spectrum, the price must not exceed 0.84/per minute,

In compliance with regulators mandates Customer gets minimum 30 days balance for every prepaid topup value. The value can be accumulated for 365 days.

NBTC announced the mandate for network infrastructure sharing among operatorsi.e. tower, land, site facilities, etc. in April 2013.

The action is subjected to availability of network capacity.

1.00 THB = $0.0304220


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2G 2.5 2.7

3G 3.5 3.9 LTE

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NBTCRegulator

900 MHz17.5MHzBandwidth

AIS17.5MHz

2100 MHz15MHzBandwidth

MVNO15MHz


AIS15MHz

DTAC15MHz

True15MHz


DPC12.5MHz

True12.5MHz

DTAC50MHz


DTAC10MHz

True15MHz

BTO contract ends 2015

MVNO Wholesale contracts

Auctioned license

Auctioned license

Auctioned license

Ended 2013

Ended 2013

Ends 2018

BTO contract ends 2018

Wholesale - Resell

License ends 2015

License ends 2025

License ends 2027

License ends 2025

License BTO contract

Ends 2018

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TOT/CAT NBTC

Till 2013-2018 15-years

TOT/CAT Operator

20-30% revenue share 5.25% of revenue (Type 3 License)

*BTO is Build Transfer Operate contract. Note: Operators have to pay a numbering fee at Bt2/number/month to the regulator


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BTO contract regulatory fee = Revenue share + Access chargeCeased since 2007

5.25% = 1.5%Paid to Regulator

+ 3.75%Paid to Regulator

Upfront license bidding cost THB 13.5 - 14.6 Billion for 2x15 MHz.

1.00 THB = $0.0304220


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Interconnection charge (IC) or terminationcharge is a bilateral agreement charge levied bynetwork operators on other service providers to recover the costs of the interconnection facilities provided by the network operators.

AIS, DTAC and TRUE agree to pay IC rate at THB 1.00/min.

The new IC rate of THB 0.45 per minute is applied from 1 July 2013.TOT3G does not enter into IC agreement with any operators

1.00 THB = $0.0304220

The regulator has pledged to introduce a lower mobile termination rate than the current 0.45 baht ($0.014) per minute to help operators comply with the per-second billing new policy.


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National roaming happens when one operator allow its customers to originate/receive traffic using network of other operators.National Roaming ensures that customers have seamless connection experience.

Subscriber uses 2G handsets. Subscriber makes/receives a call outside of 3G coverage

Provide network capacity to support trafficoriginated/received from customer of 3G Operator.

Subjected to 30% revenue sharing to TOT/CAT

Provide roaming service Pay roaming charge


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Yozzo is a Telecom Consulting firm, specializing in Information and Communications Technology (ICT).

We assist public and private sector clients in their decision making through market insights, experience and technical skills. Our clients includes: Governments, Telecom Regulators, Telecom operators, MVNOs, Mobile device manufacturers, Retailers, Software & Service providers, Media and Broadcasting companies.

We approach consultancy engagements from a commercial perspective, with the aim of adding significant value to your business by identifying and pursuing: growth opportunities, create products, services, and businesses that improve the efficiency, productivity, and profitability of your business.


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