TELECOMS

DTAC bases new postpaid tariffs on real traffic rates

SRISAMORN PHOOSUPHANUSORN

DTAC officially ushered in a new era of interconnection charges yesterday by introducing what it says is the first postpaid tariff system based on real call traffic. The second-ranked mobile operator's move puts further pressure on TOT Plc to end the access-charge system, under which the state telecom enterprise earns up to 14 billion baht annually from DTAC and third-ranked True Move.

Chief executive Sigve Brekke said he is bullish about future growth of the local mobile market. He expected to see the number of net new subscribers increase by 10 million this year, and another 10 million in 2008.

But he acknowledged that mobile operators expect to see flat growth in their average revenue per user and minutes of use due to stiff competition.

DTAC has earmarked 30 billion baht to spend on network expansion in remote areas of the country over the next three years. The investment is slated to increase the number of base stations to 10,000, up from 7,000 now.

The company plans to complete its Edge network coverage nationwide by May. It also plans to invest in a 3G network and high-speed data packet access (HSDPA) system within three years.''Even though the current environment is uncertain, we are confident of the country's economic fundamentals. We are also optimistic about strong growth in the local mobile industry,'' Mr Brekke said.

''DTAC also has no plan to delay our listing on the Thai stock market,'' he added. The company is already listed in Singapore.

DTAC yesterday introduced a new record-low postpaid promotional campaign, charging only 99 baht as a minimum monthly fee.

Customers who sign up for the package will be charged one baht per minute for calls made within DTAC's network, and two baht per minute for calls made to other networks.

The company will charge customers the maximum for the first five minutes of each call, making the calls free from the sixth minute up to one hour.

Mr Brekke said DTAC expects to have a total of 2.1 million postpaid subscribers this year out of an expected market of seven million postpaid customers. The company also expects to gain a 35% share in the prepaid market.

DTAC now has 12 million subscribers out of 38 million mobile users nationwide.

Mr Brekke also expressed confidence that the legal case on access charge disputes with TOT Plc at the court would be decided in favour of DTAC and True Move. The belief was based on the anticipated result weighed by six law firms.

Bangkok Post
Friday February 02, 2007