When True Corp CEO Supachai Chearavanont talked about his "digital convergence" policy two years ago, the media had no inkling of the fact that the policy - and its buzzwords - also covered cafe latte and pasta.

But the telecom giant, whose business encompasses everything from wireline to cellular, pay-TV and broadband-Internet services, believes everything can be mixed to succeed, if the recipe is right.

True currently has more than 20 True Life shops across Bangkok and upcountry, representing an investment of more than Bt100 million.

Papon Ratanachaikanont, assistant to the CEO, says Supachai had in mind making the True brand "concretely" represent the lifestyles of its customers two years ago, before the pair got together to brainstorm on the idea.

"We both 'clicked' on the coffee-shop business," he says, "but since we're not coffee specialists, it took us half a year to get a complete picture of what we had to do."

Papon, who is one of the key people involved in developing the True Life shops, was confident coffee was the answer, so the former Mazda Sales marketing executive hit the road to study coffee and food and beverage businesses round the world, in order to gather some insight.

He confesses, now, that he appreciates the success of Starbucks.

"But we didn't want to be a Starbucks clone. Our priority was to boost customer satisfaction with our own brand. The idea was they could get everything in our True Life shops, from a cup of coffee to wireless and wireline broadband Internet and tech gear while waiting to pay True telecom service bills."

Currently, True has more than 1 million fixed-line subscribers, more than 5 million cellular users and almost 400,000 broadband-Internet customers, and group synergy is vital if it is to survive the brutal competition in the telecom sector.

It divides the shops into two types: general and branding. While patrons can find some products and services in both, such as Internet access, kiwi juice and a phone-bill payment counter, the branding shops boast a funky design.

The main revenues come from broadband-Internet access, for which the charge is Bt40 an hour, and food and drinks for an average of Bt180 per order.

"It's doing pretty well for us," Papon says. "The revenues are not high, but the number of bill transactions is good."

A branding shop called True Urban Park in the upmarket Siam Paragon shopping mall is the top revenue earner. Opened at a cost of Bt40 million, the trendy venue generates Bt4 million a month. Its Siam Paragon location makes it a new rendezvous for affluent shoppers and the urban chic.

In front, a "flip dot" billboard displays the name True. Inside are sets of funky chairs with sound tubes above them to plug into and listen to MP3 music. If the customers don't intend to buy anything from the displays of expensive hi-tech gear, they can sip coffee, check out the flower shop or watch a huge screen on one wall featuring a live broadcast of underwater life direct from Siam Ocean World. A broadband-Internet station is also available, close to the corner for art books and music CDs.

"The shop's design is very impressive," says one shopper who dropped in at True Urban Park for the first time to check his e-mail. "It makes me think of True as a young brand."

But another first-time visitor doesn't like the atmosphere. "The place is too dim," she complains.

The first True Life and branding shop was opened last year in the backpackers' hot spot of Khao San Road. It cost Bt7 million and featured a design theme of "East Meets West".

"It's an ideal location to have our brand recognised by foreigners," says Papon. "We'll keep renovating the shop to refresh the brand."

Another shop - this one at Siam Square - serves as a meeting place for parents and students on weekends. While parents go there to wait as their kids attend tutorial schools, students drop in to read books or chat with friends.

The latest True Life shop, costing about Bt10 million, is located in The Third Place Building in Soi Thonglor. Unlike the other True Life venues, this one hosts a live music gig every Friday and Saturday night, turning it into a new oasis for music lovers. The fans of the bands can also watch the shows at home on True's homepage.

Papon says True Thonglor has a long queue of artists wanting to take centre stage. They don't get paid for the show, but they're happy to play there. At the same time, it grows in stature as a platform to launch the marketing activities of the other True companies.

"And clients can linger there all day. They don't have to worry. Our staff won't force them to buy drinks," he says.

The next True Life shop will open in a showroom for Austin minicars in the Ekamai area next February, while plans to create a Chiang Mai shop are on the drawing board.

Papon says the success of the True Life shops has attracted people who want to be franchisees.

"We've got a list of 70 applicants, but we haven't decided yet, whether to make it a franchise business."

Usanee Mongkolporn

 The Nation