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16 Oct 2012

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3G-2.1 GHz Business to Bolster Data Services by 44% and Turnover to THB210 Billion in 2013 (Current Issue No. 2292 Full Ed.)

KResearch expects that after the auction of the 3G 2.1-GHz business licenses, new license holders, especially those having problems in providing service on their existing frequency, will accelerate plans to expand network coverage and begin offering service in Bangkok Metropolitan areas and major provinces by late 1Q13. They will also be introducing marketing promotions to convince their 2G customers to upgrade to 3G that will carry lower annual revenue-sharing concession costs.
As for the outlook on 3G 2.1-GHz business after the auction, it is expected that content providers will quickly develop new online services to meet growing consumer needs. Moreover, it will help spur telecom infrastructure investments of perhaps THB125 billion over the next three years and induce more mobile phone users to switch to 3G cellphones.

Given this, we at KResearch expect that data services will drive growth in mobile phone business during 2013. It will likely constitute 32.5 percent of the total business turnover, rising over the 25.8 percent expected for 2012. Data services alone should grow 35.6-44.0 percent to THB66-70 billion, helping spur mobile phone business during 2013 to 11.5-14.2 percent growth, representing revenue of THB210-214.9 billion, against the THB188.3 billion expected for 2012.

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