Thailand's Mobile Market Information Q4 2014

Presentation by Yozzo Co.,Ltd. www.yozzo.com March 2015 V 1.4

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

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Bangkok 2.695.519 2.996.765 5,692,284

Nakhon Ratchasima 1,294,987 1,325,530 2,620,517

Ubon Ratchathani 925,427 919,242 1,844,669

Khonkaen 884,822 905,227 1,790,049

Chiang Mai 816,620 861,664 1,678,284

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Source: NBTC Survey 2014




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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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 Thailand’s 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 1,900,000

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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SawasdeeShop 1 MVNO 30 Nov 2006 29 Nov 2019

IEC Technology Co., Ltd 1 MVNO 08 Apr 2009 07 Apr 2019

SAMART i-Mobile 1 MVNO 04 May 2009 03 May 2019

Loxley Public Company Limited 1 MVNO 18 Nov 2009 17 Nov 2019

365 Communications Co.,Ltd 1 MVNO 18 Nov 2009 17 Nov 2019

MCONZULT ASIA Co.,Ltd. MOJO3G 1 MVNO 03 Dec 2009 02 Dec 2019

Wireless Device Supply (AIS) 1 MVNO 28 Jul 2010 27 Jul 2015

Advanced Mobile Broadband Co.,Ltd (AIS) 1 MVNO 28 Jul 2010 27 Jul 2015

I Talk Plus – (Advanced Telephone & Telecommunication Co., Ltd) 1 MVNO 25 Aug 2010 24 Aug 2015

Mobile Plus Ltd (i-mobile3GX) under SAMART 1 MVNO 25 Aug 2010 24 Aug 2015

GMM Grammy Public Company Limited 1 MVNO 01 Dec 2010 30 Nov 2015

C.T. Telecom Co., Ltd 1 MVNO 01 Dec 2010 30 Nov 2015

True distribution and sales Co., Ltd. (True Mobile Group) 1 MVNO 01 Dec 2010 30 Nov 2015

a2network (Thailand) Co., Ltd (a2network Japan) 1 MVNO 01 Dec 2010 30 Nov 2015

FTTX infra (Pattaya) Co.,Ltd 1 MVNO 01 Dec 2010 30 Nov 2015

ACUMEN (Subsidiary of Jasmine International Plc) 1 MVNO 04 May 2011 03 May 2016

The following companies have obtained a TYPE 1 MVNO license in Thailand as of Q4 2014



http://www.sawasdeeshop.com/en/

http://iec.co.th/

http://www.i-mobilephone.com/

http://www.loxley.co.th/

https://www.365.co.th/

http://www.mojo3g.com/

http://www.ais.co.th/aboutais/en/

http://www.ais.co.th/aboutais/en/

http://thaitel.com/index.php?route=product/process&product_id=130

http://www.i-mobile3gx.com/

http://www.gmmgrammy.com/new2014/en/index.html

http://www.ct-telecom.co.th/en/index.php

http://www3.truecorp.co.th/home

http://www.berrymobile.jp/thailand/service/

http://www.acumen.co.th/index1.html


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Siam Advanced Networks Limited. 1 MVNO 4 May 2011 03 May 2016

Dplus Intertrade Company Limited 1 MVNO 04 May 2011 03 May 2016

Jasmine Telecom Systems PLC (Subsidiary of Jasmine International Plc) 1 MVNO 16 June 2011 15 Jun 2016

Loxley Mobile Company Limited 1 MVNO 17 June 2011 16 June 2016

Bliss-tel Public Limited Company 1 MVNO 14 Jan 2013 13 Jan 2018

IP Exchange Company Limited 1 MVNO 14 Jan 2013 13 Jan 2018

Loxley Wireless Company Limited 1 MVNO 14 Jan 2013 13 Jan 2018

M Link Asia Corporation (PCL) 1 MVNO 14 Jan 2013 13 Jan 2018

Digital Gen Co., Ltd - Subsidiary of GMM Grammy Public Company Limited 1 MVNO 14 Jan 2013 13 Jan 2018

SB Telecom (Subsidiary of Softbank Telecom Corp Japan) 1 MVNO 13 Mar 2013 12 Mar 2018

Tesco Mobile UK 1 MVNO 2 Aug 2013 01 Aug 2018

GW.Biz 1 MVNO 20 Dec 2013 19 Dec 2018

EDC Network Asia 1 MVNO 11 Apr 2014 10 Apr 2019

Data CDMA Communications Limited 1 MVNO 23 Jun 2014 22 Jun 2019

Media Knowledge Co Ltd 1 MVNO 31 Aug 2014 30 Aug 2019

Mobile LTE limited company 1 MVNO 09 Dec 2014 08 Dec 2019

King Telecoms 1 MVNO 18 Dec 2014 17 Dec 2019

The following companies have obtained a TYPE 1 MVNO license in Thailand as of Q4 2014



http://www.san.co.th/

http://www.dplus.co.th/2012/

http://www.jts.co.th/

http://www.loxley.co.th/business.html/Technology Business/Technology Business/Technology Business:Companies:Loxley Mobile Co., Ltd.

http://www.blisstel.co.th/

http://www.loxleywireless.co.th/

http://www.mlink.co.th/index.html

http://www.gmmgrammy.com/

http://tm.softbank.jp/english/

http://www.tescomobile.com/

http://www.gw-biz.com/

http://www.king-telecom.com/Index.php/site/about



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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 Office of Thailand Survey 2014




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: 5,687,038 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

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2.000.000

3.000.000

4.000.000

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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.• Bangkok has more Facebook users than any other city in the world with 14 million. • 93% of Thai Internet users access Facebook every week, compared to 47% globally. • 19 million, access Facebook through their mobile device.

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LINE users in Thailand (Oct. 2014)

• Facebook 93%• Line 87%• Google+ 34.5%• Instagram 34%• Twitter 16.1%

Source: ETDA/MICT | LINE | Facebook | 2014

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.




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Source: Nokia Solutions and Networks (Thailand).

I need

more data




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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 Thailand’s 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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During the last three years, Android has increased its lead in the smartphone market from 32% in 2011 to 73% end of 2014.

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iOS 15%

Other 6%




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While smartphones priced at 2,000 THB accounts for almost 20% of the total Thai smartphone market

6-12 months compared with 18 months previously




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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 voice price must not exceed 0.84/per minute

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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Indonesia: 0.32 THB/per minute

Thailand: 0.84 THB/per minute

Malaysia: 1.05 THB/per minute

Myanmar: 1.60 THB/per minute

Vietnam: 1.92 THB/per minute

Cambodia: 2.17 THB/per minute

Singapore: 2.90 THB/per minute

Laos: 3.21 THB/per minute

Brunei: 4.63 THB/per minute

Philippines: 4.72 THB/per minute

Indonesia: 0.37 THB per SMS

Vietnam: 0.48 THB per SMS

Laos: 0.64 THB per SMS

Philippines: 0.72 THB per SMS

Myanmar: 0.80 THB per SMS

Cambodia: 1.05 THB per SMS

Malaysia: 1.05 THB per SMS

Singapore: 1.18 THB per SMS

Brunei: 1.18 THB per SMS

Thailand: 1.33 THB per SMS

Laos: 0.10 THB per Mb

Singapore: 0.11 THB per Mb

Malaysia: 0.21 THB per Mb

Thailand: 0.28 THB per Mb

Cambodia: 0.60 THB per Mb

Philippines: 0.78 THB per Mb

Brunei: 1.25 THB per Mb

Vietnam: 2.30 THB per Mb

Indonesia: 4.43 THB per Mb

*Myanmar: 0.13 THB per minute

Price per minute in Thai baht (THB) Price per message in Thai baht (THB) Price per Mb in Thai baht (THB) 3G

*Myanmar does not charge per usage but in time slots




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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/min.

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

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, 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 Q4 2014

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