thailand's mobile market information q3 2014

Presentation by Yozzo Co.,Ltd. www.yozzo.com December 2014 V 1.5

Presentation by Yozzo Co.,Ltd. www.yozzo.com December 2014

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There are

and

Daily via mobile networks in Thailand




YearSubscribers 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%

Q3 2014 100,225,548 5.41% 12,603,332 5.34% 87,622,216 5.42%

Source: Operators | NBTC

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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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Year

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%

Q3 2014 149.58% 18.81% 130.77%

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245 205 204 200 194 211 197 195

693 586 582 582 580 621 606 594

197 164 162 160 158 158 140 138

Average Revenue Per User (Excluded Interconnection Charge)

1.00 THB = $0.0304220

Average Revenue Per User (Including Interconnection Charge)

1.00 THB = $0.0304220

311 263 256 254 190 194 187

746 643 639 648 484 454 459

254 214 210 210 157 161 151

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319 251 253 257 236 240 267 254

648 539 486 477 400 375 461 364

277 217 226 233 217 220 240 239

Mobile MOU (Minute/Month) 2007 – Q3 20141.00 THB = $0.0304220

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Revenue per/minute Q3 2013 – Q3 2014

0.50 0.48 0.45 0.49 0.47

0.47 0.45 0.44 0.45 0.55

0.31 0.33 0.31 0.29 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 Thailand’s existing 95 million 2G customers shifted to 3G in only five months.

Today AIS has 38.7 million 3G users out of 43,79 million total subscribers.

DTAC has 19.7 million 3G users out of 27.8 million customers.

True Move has 19.1 million 3G users out of 23.4 million subscribers.




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47,48%

28,22%

23,39%

0,37% 0,54%

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Source: AIS 2014

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

Subscribers Q2 2014 4,661,100 38,217,100 42,878,200

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

Net additions Q2 2014 197,300 318,400 515,700

ARPU Q3 2014 625 THB 169 THB Blended 216 THB

MOU Q3 2014 387 255 Blended 270

1.00 THB = $0.0304220

88% of total subscribers 19m using 3G devices

77 provinces 97% coverage

Mobile data grew 13% QoQ Mobile data grew 62% YoY

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Source: dtac 2014

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

Total as of Q2 2014 3,659,000 24,380,000 28,039,000

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

Net Additions Q2 2014 58,000 -245,000 -187,000

ARPU Q3 2014 ex. IC. 580 THB 141 THB Blended ex. IC. 197 THB

MOU Q3 2014 ex. IC. 265 176 Blended ex. IC. 188

16,500 3G sites. 850MHz & 2100 MHz

71% sub base ported to 3G Total subscriber base

decreased 0.9% QoQ

Smartphone penetration 41.2% Mobile data users 12.5 million.

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1.00 THB = $0.0304220




Source: True Corporation

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True

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 Q3 2014 N/A N/A N/A

ARPU Q3 2014 514 THB 61 THB 139 THB

1.00 THB = $0.0304220

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4G LTE 2100 MHz 3G+ 850, 2100 MHz 2G 1800 MHz

Voice revenue grew 4.9% QoQ especially in Northeast.

Non-voice revenue grew 6.4% QoQ

85% of total subscribers are on 3G or 4G





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3,040,483Metropolitan

2,763,535Provincial

19.75%Metropolitan

5.35%Provincial




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

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Internet Users: 26,140,473, Internet Penetration: 39.06% Internet Broadband: 5,336,194 Subscribers

Broadband Penetration Per Population: 7.96% Price/Kbps = 0.09 THB

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0

1.000.000

2.000.000

3.000.000

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Source: ISP | NBTC




Dial-up modem,

ISDN

Wireless Mobile

2G, 2.5G CDMA,

GPRS

ADSL, VDSL,

satellite, FTTH,

Cable

Wireless 3G mobile

Eg. 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 Office of Thailand Survey 2014




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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400MBIn 2013 Thai users consumed an average of

Source: Nokia Solutions and Networks (Thailand).

of mobile data per monthWhile their European peers consumed less than 200 MB per month




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1GBEnd of 2014 Thai users consumed about


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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Source: IDC Thailand

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Regulator stipulated the price ceiling for voice service at average of THB 0.99/minute since 2012. The price cap mandate stipulated for the Significant Market Power operators (SMP) AIS and DTAC.

In compliance with regulators mandates• Customer gets minimum 30 days balance for every prepaid top‐up 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 MHz17.5MHz‐Bandwidth

AIS17.5MHz

2100 MHz15MHz‐Bandwidth

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/minute.

The new IC rate of THB 0.45 per minute is applied from 1 July 2013.TOT‐3G does not enter into IC agreement with any operators

1.00 THB = $0.0304220




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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, MVNO’s, 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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thailand's mobile market information q3 2014

Mobile

operators nbtcwww

g subscribers

g users

g customers

subscribers q2

perminute q3

net additions q3

total subscribers