Buddy Broadband Ready to Widen ‘Triple Play’ Coverage
By Srisamorn Phoosuphanusorn, Bangkok Post, Thailand
Jan. 13–Advanced Datanetwork Communications Co is spending 360 million baht to expand the coverage of its Buddy Broadband “triple play” Internet service with the aim of increasing the number of subscribers to top 60,000 this year.
Up to 300 million baht will be spent to expand broadband coverage in central business districts in Bangkok and big cities in the provinces. The remaining 60 million baht is reserved for marketing.
ADC, a joint venture between Advanced Info Service and TOT Plc, also plans to offer its three-in-one Internet protocol TV service through mobile phones and personal digital assistants (PDAs).
“Triple-play” enables users to watch Internet-based TV, order real-time video-on-demand over broadband Internet and surf the net simultaneously at a speed of up to two megabits per second.
Managing director Trairat Kaewkerd said ADC was gearing up to position Buddy Broadband as a “home multimedia hub” that would bring changes to local lifestyles.
“We have been remaking ourselves by positioning ADC as an ‘interactive and on-demand television’ operator, not cable pay-TV,” he said.
Some industry executives have expressed scepticism about Buddy Broadband’s business model and a lack of content that would appeal to consumers. They have also questioned TOT’s commitment to the venture. But Mr Trairat maintains that Internet-based broadcasting is part of the product development plan of Shin Corp, the parent of AIS.
He said ADC had been busy resolving problems related to spotty network coverage of TOT fixed-line phones, weak infrastructure, obsolete copper wires, lack of co-operation between the two parties, poor distribution channels and lack of content variety.
The company is planning to install cable to link AIS’s 1,000 mobile base stations where there is no TOT coverage. Shin Satellite’s iPSTAR will serve remote areas.
“It’s time now for ADC to step up our marketing campaigns to promote Buddy Broadband on a mass commercial scale nationwide, thanks to the growing awareness of triple-play technology among Thai people,” Mr Trairat said.
ADC is set to introduce new tariff campaigns to offer more choices for customers. It will offer plans with speeds of 256 and 512 Kbps at 500 and 600 baht per month.
It currently offers customers with TOT telephone lines only one package at 650 baht a month in exchange for watching free online TV shows and using broadband Internet services and unlimited data application downloads at a speed of 2 Mbps.
Mr Trairat said the company was in the process of doubling the number of TV programmes on offer to 20 by the end of this year, with the bulk of them being order-on-demand programmes such as online shopping and dining delivery.
Customers now are charged an additional 10-30 baht per selection of some video-on-demand content such as movies and sports, by using prepaid refill cards.
Since its launch in April last year, ADC has signed up 7,500 subscribers, far short of its sales target of 80,000 customers by the end of 2005.
“We are confident we can boost the number of households signing up for Buddy Broadband by eight-fold to 60,000 this year and double to 120,000 in 2007,” said Mr Trairat.
“The project is expected to break even within two-and-a-half years when the number of users reaches 200,000.”
ADC has registered capital of 957 million baht, with AIS holding a 51 percent stake and TOT 49 percent.
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