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Buddy Broadband Revival


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TELECOMMUNICATIONS / INDUSTRY REGULATION, DIGITAL MULTIMEDIA

Buddy Broadband revival

BANGKOK: -- Advanced DataNetwork Communication, a joint venture between AIS and TOT Plc, is aiming to revive its digital broadband television next month with the resumption of an aggressive marketing campaign now that differences between the two partners look ready to be resolved.

The provider of the three-in-one online home infotainment on-demand TV service also announced an ambitious plan to start offering its Buddy Broadband on a ``mass commercial'' scale nationwide next year _ with network support from AIS's mobile infrastructure and Shin Satellite's iPSTAR facilities.

Buddy Broadband enables users to watch television and real-time video-on-demand while making telephone calls and surfing the Internet at a speed of two megabytes per second.

Trairat Kaewkerd, the newly appointed managing director of ADC, said the company was ready to aggressively promote the Buddy Broadband service in October now that differences over network coverage and marketing roles look set to be overcome.

Since its launch in April, ADC has signed up only 5,000 subscribers, far short of its sales target of 80,000 customers by the end of the year.

Industry executives attributed the poor response partly to the lack of interesting content for consumers to watch.

Mr Trairat admitted that ADC had encountered a number of problems since the launching, including the use of obsolete copper wire by TOT, poor network coverage on the state fixed-line phones and a lack of cooperation between the two partners.

``We (AIS and TOT) have set up a committee to discuss the problems and the disputed issues should be resolved this month,'' he said.

Mr Trairat explained that ADC had come up with a new business plan under which AIS would install copper lines on the existing mobile network facilities where there is no TOT coverage, while Shin Satellite's iPSTAR would cover service provision in remote areas.

ADC is also restructuring its organisation and business structure by appointing AIS's 1800 service provider Digital Phone Co to market Buddy Broadband to the mass market through its outlets nationwide.

Mr Trairat said a Japan-based advertising firm had expressed interest in participating with ADC in distributing Buddy Broadband through modern trade outlets such as Lotus and Home Pro.

He said AIS planned to expand its mobile network to offer the Buddy Broadband service in more than 200 condominiums in central Bangkok by the end of this year.

``We are optimistic that ADC could reach its sales target of 160,000 next year and 200,000 in 2007,'' he said.

The project is expecting to break even within four years when the number of users reaches 500,000.

ADC has registered capital of 957 million baht, with AIS holding a 51% stake and TOT 49%.

Mr Trairat said the company was in the process of increasing its variety of programmes. Currently, it offers 10 free online TV programmes with the bulk of them being video-on-demand content such as movies, educational programmes and sports.

Customers with TOT telephone lines pay 650 baht a month in exchange for watching free online TV shows and using unlimited data application downloads and domestic broadband Internet services.

Customers are charged an additional 10-30 baht per selection of some video-on-demand content such as movies, educational programmes and sports, by using the company's prepaid refill cards.

According to a Shin executive, AIS has no plans to exit the Internet-based broadcasting business, given that the unit has been designated as part of Shin Corp's business development plan.

--Bangkok Post 2005-09-26

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