International call business is worth watching. In an era of globalization, international communications are becoming increasingly important. Over the past 3-4 years, the market has encountered very intense competition, especially after the National Telecommunications Commission (NTC) granted licenses for international call services to private operators.
In 2010, operators are expected to continue to focus primarily on pricing strategies. The popularity of more user-friendly and cheaper Voice over Internet Protocol (VoIP) technology is expected to reduce international call rates even further. However, the rate of decline in international call costs may moderate due to the already low pricing now available.
Falling call rates are likely to result in a higher volume of traffic in 2010. Among other positive factors that would also facilitate this trend would be the global economic turnaround, rising tourist arrivals, market liberalization and a larger number of Thais studying abroad. Over the short-term, higher growth is expected. KASIKORN RESEARCH CENTER (KResearch) forecasts that the market value of international calls in 2010 may total around THB9-9.5 billion, almost unchanged from 2009, or a YoY increase of 0-5.6 percent, compared to the THB9 billion seen last year, when it contracted 18.2 percent from 2008.
Over the long-term, operators may find it hard to increase income. To attract a greater number of users, they may have to rely on new technology, e.g., the offering of video calls, Internet-based calling via computers for corporate customers, and other new developments. They will also likely seek to offer more destination countries for these services and boost network efficiency to attract more expatriate users.
Looking ahead, conglomerates with established international business operations are expected to increasingly switch to SIP (Session Initiation Protocol) phone in lieu of their current reliance on conventional international call service providers. Emphasis should thus be placed on maintaining large corporate customers, and attracting more SME and retail users. Among other strategies likely to be employed would be special call rates for corporate customers, budget call rates during low-traffic periods, and the offering of value-added services, e.g., balance inquiries.
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