Data Service Provider Eyes Market Leader's Grip on Broadband in Thailand
Posted on: Wednesday, 10 November 2004, 21:00 CST
Nov. 11--United Communication Industry Plc, a leading corporate high-speed data service provider, has shifted its focus to broadband services as its core business.
The move comes as current market leader True Corporation announced plans to expand via a deal with affiliate UBC, the local pay-television provider, and boldly predicted that the local market would grow by 400 percent next year.
As part of a five-year plan that aims to launch a new line of business that it hopes will account for 50 percent of total revenue next year, Ucom, the parent firm of mobile phone operator DTAC also plans to apply for new licences to operate broadband Internet services with the National Telecommunications Commission.
"The move also paves the way for our flagship DTAC business to create broadband demand for mobile data communications usage and new 3G investment," said Ucom president and chief executive officer Boonchai Bencharongkul.
Mr Boonchai said that UIH, a joint venture between Ucom and CAT Telecom, would be the main vehicle for boosting broadband services in the market segment.
UBT, a subsidiary of Ucom, yesterday formed a partnership with TOT Corporation and Internet Solution Provider Co to provide next-generation broadband services and ADSL 2 plus technology, enabling users to download applications and content at a peak transmission speed of 24 megabytes per second.
The BB Life service, also in partnership with content providers such as RS Promotion and INN, would enable users to put video conferencing, video streaming, music videos and digital radio on their devices. Customers can sign up for the service at 990 baht per month and pay between 2,000 and 3,000 baht for a modem to access unlimited data application downloads and Internet services at a transmission speed of one megabyte per second, about 18 times faster than for normal broadband Internet service.
"We aim to have at least 20,000 people sign up with BB Life service by the end of this year," Mr Boonchai said.
He admitted that broadband business operators in Thailand are unlikely to thrive unless the number of users reaches one million. However, he said the company targeted a 30-35 percent share in the future market which is currently dominated by fixed-line operator True Corporation, with a market share of around 90 percent.
Mr Boonchai said Ucom had invested up to 300 million baht in broadband network installations this year as its first phase to focus on broadband services alone.
Offering broadband broadcasting and voice-over-IP service is the goal for the second phase, once the company receives a new licence from the NTC.
Meanwhile, current broadband market leader True Corporation is looking into the possibility of expanding its broadband services nationwide through subsidiary Asia Multimedia, the optical fibre operator for United Broadcasting, the pay-TV operator, after projecting 400 percent growth of the broadband industry next year.
Phaibul Sirivanich, director for consumer services of True, said the number of broadband users in Thailand is expected to jump to 800,000 next year, compared with 200,000 this year. The penetration rate for broadband Internet in Thailand is a mere 0.3 percent, compared with 15 percent in Europe and 50 percent in Korea.
True, in collaboration with eight financial institutions, is offering home financial services, aimed at some 200,000 existing stock investors.
The eight are Allianz C.P., Citibank, Freewill Solutions, InfoQuest, K-Asset, Kasikornbank, Silkspan and Visa International.
The home financial services, which are being demonstrated from today until Sunday at the Set in the City Fair at the Queen Sirikit National Convention Centre, encompass financial services, financial news, stocks, home loans, wealth management, personal loans, online payments, auto payments and insurance.
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C, KPCPF,
Source: Bangkok Post
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