Dtac To Continue Cut-rate Campaign

[george]

DTAC to continue cut-rate campaign

On track to sign up 1.2m new subscribers

BANGKOK: -- DTAC plans to continue to offer low-cost tariffs, in an effort to attract value-seeking customers.

Under "Just Right II", a new campaign to be launched in September, the country's second largest mobile phone service provider will offer low-priced calling rates with acceptable quality reception.

Co-chief executive officer Sigve Brekke said the campaign would be part of DTAC's second-half strategy to focus on the trend among customers to get the best value for their money as the economy slows down.

He added the campaign also aimed to tap new opportunities arising from change in attitudes among mobile consumers which places less importance on a high quality mobile network and premium brand image, as indicated in a recent survey by ACNielsen.

No specific details of the Just Right packages were provided but Mr Brekke did indicate that it would offer cheap rates and not cut-throat prices.

DTAC plans to spend 2.5 billion baht by the end of this year to upgrade its network capacity to accommodate approximately 10 million subscribers.

Mr Brekke said DTAC was on track to achieve its target of 1.2 million new subscribers by the end of this year.

The company gained 633,000 net new subscribers out of a total of 1.946 million registered in the first half of the year.

Meanwhile, market leader Advanced Info Service (AIS) has cut its target from 1.8 million to 1.2 million new subscribers this year, after it gained 630,500 net new users in the first six months of the year. Third-ranked TA Orange is targeting for its total subscriber base to reach 4.2 million this year, after gaining 682,782 new customers in the first half.

Mr Brekke said DTAC's recent operating results had helped boost his confidence in the outlook for the company.

DTAC posted revenues of 10.5 billion baht in the second quarter, up 15% from same period last year. It had a 27.5% share of the 75 billion baht worth of service revenues for mobile phones in the first half, up two percentage points from the same period last year. This compares with a drop of seven points to 55.2% for AIS and 2.5 points to 11% for TA Orange.

"The latest figures put AIS in third place in terms of attracting new customers and generating average revenue per user, after DTAC and price-cutting rival TA Orange," Mr Brekke said.

"They have also shown that DTAC has gained more high-tier customers and is capable enough to absorb the unforeseen rock-bottom price competition and high-record churn rate factors that have occurred this year."

Mr Brekke said the strategy of balancing price-cut promotions and minutes of use was the key factor behind DTAC's better-than-expected performance.

However, he said, DTAC was still facing higher regulatory costs including concession fees, an excise tax and an access charge of 200 baht per number per month to CAT Telecom.

"Our current regulatory costs account for 36% of total revenue," he said, noting that DTAC expected to pay seven billion baht in access charges alone this year.

--Bangkok Post 2005-08-22

[AsiaWolfie]

as plans and promotions change so quickly, its almost impossible to keep an overview..... maybe one of our THAI members can check the websites of the 4-5 biggest providers, and list the current plans and promotion activities here. then this topic should be PINNED so all members can take benefit from it. and of course would need an update probably each 2 weeks or at least each month. that would be very helpful I guess..... as for me, I am often outside of LOS and so its just impossible to know all the latest promotions.....

[Captain Haddock]

Include info on how much Top-Up is needed for the subscription length, too, please.

I'm forever buying new SIMs as I don't spend enough on Talk-Time each month. Most frustrating!

[Heng]

AIS should just provide service at cost or loss until the other players go out of business... or else just buy the other players up, Standard Oil style.

[joe beets]

AIS should just provide service at cost or loss until the other players go out of business... or else just buy the other players up, Standard Oil style. 

<{POST_SNAPBACK}>

Because AIS needs tips on how to play robber baron?

jb