Mobile Providers Agree on Budget SIMs

By Srisamorn Phoosuphanusorn, Bangkok Post, Thailand

Mar. 19–The country’s four mobile-phone operators — AIS, DTAC, True Move and Hutch — have agreed to offer the first batch of 100,000 “Commerce” SIM cards for free in early April.

The cards, which will be called Blue Flag SIM cards, would be distributed by the Commerce Ministry.

Market leader AIS would have to contribute 40,000 cards, with second-ranked DTAC 30,000 cards, third-ranked True Move 20,000 and Hutch 10,000.

The operators would charge customers 50 satang a minute from 6 am to 6 pm for all customers. Calls made after the period would be charged at two baht a minute for customers using the cards of AIS and DTAC, and 1.50 baht a minute for customers of True Move and Hutch.

Sigve Brekke, the chief executive of DTAC, said the operators were scheduled to meet with the commerce minister today for final approval.

They would also submit a letter to the National Telecommunications Commission (NTC) for approval in order to avoid any accusations of price-dumping.

Operators are required to subsidise 50 baht for each SIM free offering.

Mr Brekke admitted that the 100,000 free SIM cards would be insignificant compared to the total 52 million mobile phone users.

But he said operators could not provide all customers with free low-tariff SIM cards as the ministry requested unless the government pushes the two state telecom enterprises, TOT Plc and CAT Telecom, to reduce the revenue-sharing payments they collect from private firms.

“Every 10 percent reduction in revenue-sharing would mean a 10 percent decrease in tariff costs by operators,” said Mr Brekke.

DTAC and Kasikornbank yesterday introduced ATM SIM cards, which allow users to conduct financial transactions and check their account balances over mobile phones.

The mobile operator and the bank expect to attract one million subscribers each by the end of this year.

Even with soaring goods prices and living costs, Mr Brekke said DTAC expected to see revenues increase by 5-10 percent this year, compared with 3 percent last year.

He said rising farm prices had boosted incomes of people living upcountry, where DTAC has 60 percent of total subscribers.

The company expects to have 3.5 million new subscribers out of an expected total of 10 million new customers this year. The country’s penetration rate of mobile phones is expected to reach 95 percent this year.

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