Thailand's Mobile Market Information 2014

THAILAND’S
MOBILE
MARKET
INFORMATION Q1 2014
Presentation by Yozzo Co.,Ltd.  www.yozzo.com  April, 2014
V 1.2
PRESENTS

THAILAND DEMOGRAPHICS
www.yozzo.com
 Mobile Subscribers: 96,368,368
 Fixed Line Subscribers: 5,979,195
 Labor force: 40.19 Million
 GDP - per capita: $9,900
 1.00 THB = $0.0310366
 MEDIAN AGE: 36.2 years
 Population: 67,448,000
 Capitol: Bangkok: 9,300,000
 Population Growth Rate: 0.52%
 Rural: 66%
 Urban: 34%
 Urbanization RATE: 1.6%

MOBILE PENETRATION Q1 2014
www.yozzo.com
ONE HUNDRED AND forty four

3G SUBSCRIBERS Q1 2014
www.yozzo.com
Fifty five million+

THAILAND’S MOBILE SUBSCRIBER GROWTH: 2009 – Q1
2014
Year
Total Post-Paid Pre-Paid
Subscribers Growth rate Subscribers Growth rate Subscribers Growth rate
2009 65,952,313 1.98% 7,050,943 1.24% 58,901,370 2.07%
2010 71,726,300 2.92% 7,256,473 2.01% 64,469,827 3.03%
2011 77,449,466 1.65% 7,938,934 3.70% 69,510,532 1.42%
2012 84,001,947 3.47% 9,782,683 6.60% 75,229,728 3.07%
2013 93,848,536 3.03% 11,591,587 5.55% 82,256,949 2.38%
Q1 2014 96,368,368 2.68% 11,847,642 2.21% 84,520,726 2.75%
Source: Operators | NBTC
www.yozzo.com
www.yozzo.com

THAILAND’S MOBILE SUBSCRIBER GROWTH
TABLE: 2009 – Q1 2014
120,000,000 www.yozzo.com
100,000,000
80,000,000
60,000,000
40,000,000
20,000,000
www.yozzo.com
2009 2010 2011 2012 2013 Q1 2014
0
Post-Paid 7,050,943 7,256,473 7,938,934 9,782,683 11,654,420 11,847,642
Pre-Paid 58,901,370 64,469,827 69,510,532 75,229,728 80,808,904 84,520,726
Total 65,952,313 71,726,300 77,449,466 84,001,947 92,463,323 96,368,368

THAILAND’S MOBILE PENETRATION: 2009 – Q1
2014
www.yozzo.com
www.yozzo.com
Year Total Post-Paid Pre-Paid
2009 98.58% 10.54% 88.04%
2010 106.56% 10.78% 95.78%
2011 114.58% 11.74% 102.83%
2012 127.85% 14.71% 113.14%
2013 140.59% 17.36% 123.22%
Q1 2014 144.36% 17.75% 126.61%

MOBILE MARKET REVENUE PERCENTAGE Q1
2013 – Q4 2013
21.16% 20.18% 14.28% 15.12%
24.81% 26.19%
30.07% 31.22%
www.yozzo.com
54.03% 53.63% 55.65% 53.66%
Q1 2013 Q2 2013 Q3 2013 Q4 2013
Voice Non-Voice

MOBILE MARKET REVENUE PERCENTAGE 2010
– 2013
16.08% 13.29% 12.68% 15.12%
www.yozzo.com
68.67% 67.40% 63.85%
53.66%
15.25% 19.31% 23.47%
31.22%
2010 2011 2012 2013
Voice Non-Voice

AVERAGE REVENUE PER USER 2007 – Q1 2014
Average Revenue Per User (Excluded Interconnection Charge)
1 THB = 0.0310366 USD (April 2014)
www.yozzo.com
www.yozzo.com
www.yozzo.com
2007 2008 2009 2010 2011 2012 2013 Q1 2014
Blended 245 205 204 200 194 211 197 193
Post-
Paid
693 586 582 582 580 621 606 596
Pre-Paid 197 164 162 160 158 158 140 136
Average Revenue Per User (Including Interconnection Charge)
1 THB = 0.0310366 USD (April 2014)
2007 2008 2009 2010 2011 2012 2013
Blended 311 263 256 254 190 194 187
Post-Paid 746 643 639 648 484 454 459
Pre-Paid 254 214 210 210 157 161 151

MOBILE MOU MINUTE/MONTH AND REVENUE
PER/MINUTE
Mobile MOU (Minute/Month) 2007 – Q1 2014
1 THB = 0.0310366 USD (April 2014)
www.yozzo.com
www.yozzo.com
2007 2008 2009 2010 2011 2012 2013 Q1 2014
Blended 319 251 253 257 236 240 267 268
Post-
Paid
648 539 486 477 400 375 461 464
Pre-Paid 277 217 226 233 217 220 240 241
Revenue per/minute 2013 – Q1 2014
RPM Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014
0.48 0.47 0.60 0.81 1.00
0.55 0.50 0.45 0.45 0.45
0.41 0.75 0.31 0.33 0.31

THAILAND’S WORLD RECORD IN 3G
TRANSITIONS
www.yozzo.com
In 2013 Thailand set the world record in migrating
2G subscribers to 3G, with migration taking even less
time than in Japan.
30% of Thailand’s existing 95 million 2G customers shifted to
3G in only five months.
 Today AIS has 26 million 3G users out of 42 million total
subscribers.
 DTAC has 15.9 million 3G users out of 28.2 million
customers.
 True Move has 13.6 million 3G users out of 23.1 million
subscribers.
Total 3G Subscribers: 55,5
million
3G WORLD
CHAMPION

THAILAND’S MOBILE OPERATOR MARKET
SHARES Q1 2014
1.67% 0.61%
24.26%
www.yozzo.com
44.10%
29.36%
www.yozzo.com

AIS HIGHLIGHTS
Source: AIS 2014
www.yozzo.com
AIS Postpaid Prepaid Total
Subscribers Q1 2014 4,463,800 37,898,700 42,362,500
Net additions Q1 2014 196,900 1,232,700 1,501,600
Net additions Q2 2013 121,200 426,300 547,500
Net additions Q3 2013 106,700 1,352,000 1,458,700
Net additions Q4 2013 213,200 1,522,600 1,735,800
ARPU Q1 2014 639 THB 179 THB 225 THB
MOU Q1 2014 412 283 297
1 THB = 0.0310366 USD (April 2014)
 26 m
3G subscribers
 16,800 3G
Sites
 15.8Million data
users
 62% of total subscribers
 12m using 3G devices
 77 provinces
 90% coverage
 Data users up by 1.8m Q1 2014
 Mobile data grew 20% QoQ
www.yozzo.com

DTAC HIGHLIGHTS
 15.9 million 3G
Subscribers
 9.1 Million data users
 3G Coverage: 77 provinces
 Handsets sales up 143.8%
 4G LTE Trial roll-out
 Smartphone penetration 33.9%
 Mobile data users grew 19.6%
 Mobile data revenue up 79%
Source: dtac 2014
www.yozzo.com
 Active CELL
SITES
 10,787 2G sites.
 5,190 3G-800 MHz
 8,635 3G-2100 MHz
DTAC Postpaid Prepaid Total
www.yozzo.com
Total as of Q1 2014 3,600,498 24,625,919 28,226,417
Total as of Q4 2013 3,502,235 24,440,009 27,942,244
Net Additions Q1 2014 98,263 185,910 284,173
Net Additions Q2 200,565 422,336 622,901
Net Additions Q3 111,576 127,848 239,424
Net Additions Q4 168,380 302,981 471,361
ARPU Q1 2014 640 THB 167 THB 224 THB
1 THB = 0.0310366 USD (April 2014)

TRUE HIGHLIGHTS
 NON-VOICE REVENUE
Q1 2014 Non-voice revenue increased by 4.5% QoQ, 26.8% YoY - representing 41.3% of True Mobile Group’s
service revenue
Source: True Corporation
www.yozzo.com
True Postpaid Prepaid Total
www.yozzo.com
Total as of Q1 2014 N/A N/A 23.1 million
Total as of Q4 2013 N/A N/A 22.9 million
Total as of Q3 2013 2,9 million 19,5 million 22.4 million
Net Additions 2013 N/A N/A N/A
ARPU Q1 2014 N/A N/A 129 THB
1 THB = 0.0310366 USD (April 2014)

THAILAND’S FIXED LINE SUBSCRIBERS Q1 2014
Fixed Penetration % Per
www.yozzo.com
3,122,780
Metropolitan
2,856,416
Provincial
Total Fixed line Subscribers 5,979,195
20.54%
Metropolitan
5.54%
Provincial
Population
Total Fixed Penetration 8.6%
Fixed line Subscribers

INTERNET USAGE IN THAILAND
 Internet Users: 25 million,
 Internet Penetration: 39.06%
 Internet Broadband: 5,088,157 users.
 Broadband Penetration Per Population: 7.62%
 International Internet Bandwidth: 1,070,055 Mbps
 Domestic Bandwidth: 462,997 Mbps
www.yozzo.com
Source: Thai Network Information Foundation | National Statistical Office of Thailand | NBTC | NECTEC
www.yozzo.com
90% of the 18-24 year olds access the internet daily via mobile phone.
Only 5.5 million of the 22 million Thai households own computers

BROADBAND INTERNET SUBSCRIBERS 2010 -
Q1 2014
www.yozzo.com
6,000,000
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
0
www.yozzo.com
2010 2011 2012 2013 Q1 2014
Source: ISP | NBTC

THAILAND: IN HOME SMARTPHONE INTERNET
CONNECTION
90%
80%
70%
60%
50%
40%
30%
20%
10%
Source: Google “Our Mobile Planet”
www.yozzo.com
Age Group
0%
18-24 25-34 35-44 45-54
WiFi Wireless LAN at home UMTS/3G/4G/LTE
www.yozzo.com

MEDIA CONSUMPTION IN MINUTES/DEVICE
The average user in thailand consumes 7.4 hours of media per day
Source: Millward-Brown AdReaction-2014
www.yozzo.com
176
96
95
78
Tablet
Television
Laptop
Mobile
Excl. SMS/Calls
7.4 HOURS
#1 MOBILE
Thai consumers spends 2 hours
and 56 minutes or 38% of his/her
daily media routine via their
mobile device.
minutes
minutes
minutes
minutes
www.yozzo.com

MOBILE INTERNET USAGE IN THAILAND VS. TV
Source: Nielsen Thailand Study 2013
www.yozzo.com
49%
36%
Time spent on the internet via mobile
phones accounted for 49 percent of
all media use, edging out time spent
watching TV at 36 percent
www.yozzo.com

www.yozzo.com
We ARE
SOCIAL
SOCIAL MEDIA
Source: Facebook | Zocialinc | Twitter | Hootsuite
www.yozzo.com
Facebook
Thailand has the 3rd biggest Facebook population in the world
with 26 million Thai users.
16 million access Facebook through their mobile device.
Twitter
1.73 million Thai users tweeted throughout 2013 more than 1.7
billion tweets.
Instagram
Thailand has become a destination for Instagram photographers,
in part as a result of an increase in smartphones in Thailand’s
urban centers.
Instagram saw a 546.52% growth of user in Thailand in 2013 up
from 240,000 users in 2012 to 1,551,649 in 2013.
52,06% (807,789) are inactive users vs. 743,860 active user.
1011010101101
0101101111011
10011011011000

DATA CONSUMPTION
Average data usage per 3G subscribers
in Thailand is 3 GB per/month
3GB 10011011011000
www.yozzo.com
1011010101101
0101101111011

YOUTUBE MOBILE TRAFFIC THAILAND
Source: YouTube/Google 2013
www.yozzo.com
Traffic on YouTube via
mobile
devices has jumped more
than
six-fold over the past two
years.
2011
Traffic via mobile device
11%
2013
Traffic via mobile device
41
% Thailand has the 2nd highest
amount of YouTube views in
Asia
1. Japan
2. Thailand
www.yozzo.com 3. India

LINE USERS IN THAILAND
Growth of LINE users in Thailand
LINE users today in Thailand Q1 2014
24 Million
Source: LINE Corporation
www.yozzo.com
4Q 2012 1Q 2013 2Q 2013
10,5 million 15 million 18 million
Thailand is only second to Japan (50m) when it comes to most LINE users in the world

TOP THAI DOWNLOADS GOOGLE PLAY, APP
STORE, NOKIA OVI
Source: Apple |Google Play | Nokia Ovi | Distimo
www.yozzo.com
Top Free Android
1. LINE
2. Facebook
3. LINE COOKIE RUN
4. Facebook Messenger
5. Camera360 Ultimate
Top Paid Android
1. Poweramp Full Version
2. OfficeSuite Pro 7
3. Minecraft - Pocket Edition
4. Swype Keyboard
5. Nova Launcher Prime
Top Free iPhone
1. LINE COOKIE RUN
2. BeeTalk
3. LINE Go!Go!Go!
4. LINE
5. Facebook Messenger
Top Paid iPhone
1. Camera360 - HelloCamera
2. VDownload
3. Afterlight
4. Real Whistle
5. Infinity Blade III
Top Free Nokia
1. LINE
2. Facebook
3. Subway Surfers Tips
4. YouTube ค้นหา
5. Ice Age Village
Top Paid Nokia
1. Monkey
2. Holy Fight. Tiger vs Dragon
3. iNeed For Speed Shift
4. Maldives. Dream
5. SimCity Deluxe

MOBILE OPERATING SYSTEM MARKET SHARE
www.yozzo.com
Android…
iOS 19%
other 8%
Android remains the dominant
smart device operating system in
the Thai market.
During the last three years, Android has
increased its lead in the smartphone market
from 32% in 2011 to 73% end of 2013.
It is expected that Android will increase its
market share to 78% in 2014, due to churning
Blackberry users but also due the increasing
inflow of low priced Android devices, which
saw a 400% uptake in 17 northeastern
provinces last year. The average entry
smartphone price is 2,500 THB.
www.yozzo.com

THAILAND’S MOBILE HANDSET MARKET
SHARES
www.yozzo.com
*Note Retail only - Not including shipment by mobile operators
Source: Business+, Sep 2013
Samsung
59.69%
Nokia
20.00%
imobile
9.39%
Apple
4.29%
Sony
2.35%
Oppo
2.24%
LG
2.04%
www.yozzo.com

MOBILE DEVICES SOLD IN THAILAND
www.yozzo.com
23.24 million mobile handsets sold in Thailand 2013, 9,67 million of those were smartphones.
23.24
Source: IDC Thailand million
www.yozzo.com

MOBILE DEVICE GROWTH
Source: IDC Thailand
www.yozzo.com
The Thai handsets market saw 6.3 million units shipped in Q4 2013, up 4 percent Y-on-Y.
Smartphones shipments 3.08 million are now neck and neck with feature phones 3.22 million, driven by a 63.6% increase in the
number of smartphones shipped.
63.6% www.yozzo.com

MOBILE DEVICE GROWTH SEGMENT
www.yozzo.com
Northeast
Thailand is the
fastest-growing
smart phone
region.
In 2013 sales increased 3 times
compared to 2012, exceeding the
momentum in both the central
and western regions.
The low-end segment will
account for 60% of the total
smartphone market this year, up
from 50% last year.
Source: IDC Thailand
www.yozzo.com

RECENT KEY REGULATIONS
www.yozzo.com
 Regulator stipulated the price ceiling for voice service at average of THB 0.99/minute since 2012.
 The price cap mandate stipulated for the Significant Market Power operators (SMP) AIS and DTAC.
 In compliance with regulators mandates
• Customer gets minimum 30 days balance for every prepaid top‐up value.
• The value can be accumulated for 365 days.
 NBTC announced the mandate for network infrastructure sharing among operators
i.e. tower, land, site facilities, etc. in April 2013.
 The action is subjected to availability of network capacity.
Price cap
Prepaid
Validity
Infrastructur
e sharing
1 THB = 0.0310366 USD (April 2014)

THAILAND’S MOBILE TECHNOLOGY ROADMAP
2G 2.5 2.7
3G 3.5 3.9 LTE
www.yozzo.com
2G GSM
<10 Kbps
2.5G GPRS
20-40 Kbps
2.75G EDGE
120 Kbps
384 Kbps
3.5G HSDPA
7.2 Mbps
3.9G HSPA+
21 Mbps
100 Mbps
www.yozzo.com

THAILAND’S TELECOM STRUCTURE
www.yozzo.com
NBTC
Regulator
900 MHz
17.5MHz‐Bandwidth
AIS
17.5MHz
2100 MHz
15MHz‐Bandwidth
MVNO
15MHz
2100 MHz
45MHz‐Bandwidth
AIS
15MHz
DTAC
15MHz
True
15MHz
1800 MHz
75MHz‐Bandwidth
DPC
12.5MHz
True
12.5MHz
DTAC
50MHz
850 MHz
25MHz‐Bandwidth
DTAC
10MHz
True
15MHz
BTO contract ends 2015
MVNO Wholesale contracts
Auctioned license
Auctioned license
Auctioned license
Ends 2013
Ends 2013
BTO contract ends 2018
Wholesale - Resell
Ends 2018
License ends 2015
License ends 2025
License ends 2027
License
License ends 2025
BTO contract
Ends 2018
www.yozzo.com

BTO CONTRACT VS. LICENSE
www.yozzo.com
BTO* LICENSE
Grantor TOT/CAT NBTC
Period Till 2013-2018 15-years
Asset ownership TOT/CAT Operator
Fee 20-30% revenue share 5.25% of revenue
(Type 3 License)
*BTO is Build Transfer Operate contract. Note: Operators have to pay a numbering fee at Bt2/number/month to the regulator

BTO CONTRACT VS. LICENSE FEE STRUCTURE
www.yozzo.com
BTO contract regulatory fee = Revenue share + Access charge
Ceased since 2007
Fee structure BTO contract
Fee structure license system
TYPE 3
LICENSE
FEE
ANNUAL LICENSE
FEE
USO FEE
5.25% = 1.5%
Paid to Regulator
+ 3.75%
Upfront license bidding cost THB 13.5 - 14.6 Billion for 2Pxai1d 5to MReHguzla.tor
1 THB = 0.0310366 USD (April 2014)

INTERCONNECTION CHARGE
Interconnection charge
AIS, DTAC and TRUE agree to pay IC rate at THB 1.00/minute.
www.yozzo.com
Interconnection charge (IC) or termination
charge is a bilateral agreement charge levied by
network operators on other service providers to
recover the costs of the interconnection facilities
provided by the network operators.
AIS
DTAC True
THB 1 per minute
THB 0.45 per minute
The new IC rate of THB 0.45 per minute is applied from 1 July 2013.
TOT‐3G does not enter into IC agreement with any operators
2007
2013
(IC)

NATIONAL ROAMING
Provide roaming service Pay roaming charge
www.yozzo.com
National roaming happens when one operator allow its customers to originate/receive traffic using network of other operators.
National Roaming ensures that customers have seamless connection experience.
3G OPERATOR
LICENSE BASED
• Subscriber uses 2G handsets.
• Subscriber makes/receives a call outside of 3G coverage
2G OPERATOR
BTO CONTRACT
• Provide network capacity to support traffic
originated/received from customer of 3G Operator.
• Subjected to 30% revenue sharing to TOT/CAT

ABOUT THE AUTHOR
www.yozzo.com
Yozzo is a Telecom Consulting firm, specializing in Information and Communications Technology (ICT).
What we do
We assist public and private sector clients in their decision making through market insights,
experience and technical skills. Our clients includes: Governments, Telecom Regulators, Telecom
operators, MVNO’s, Mobile device manufacturers, Retailers, Software & Service providers, Media and
Broadcasting companies.
How we do it
We approach consultancy engagements from a commercial perspective, with the aim of adding
significant value to your business by identifying and pursuing: growth opportunities, create products,
services, and businesses that improve the efficiency, productivity, and profitability of your business.

Thank you!
www.yozzo.com

Thailand's Mobile Market Information 2014

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