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Published on December 22, 2007

The new technology company plans to set up at least 10,000 machines priced at Bt52,000 and generate revenues of Bt500 million next year.

Chairman Surasak Kangkhao yesterday said Bt10 million was spent developing this technology more than one year before testing the market with 250 machines three months ago.

The MP Group sees a chance to grow in the prepaid refill market, worth at least Bt70 billion a year from 42 million mobile-phone numbers around the country.

"Ninety per cent of cellphone numbers in Thailand are with the prepaid system. We expect prepaid users to refill Bt700 million via our kiosks each year, or 1 per cent of the market," he said.

Prepaid users can refill from Bt10 to Bt50 per transaction at the machines, which are distributed by 26 dealers to retail agents that install them in community areas such as education centres, industrial estates and residential neighbourhoods.

The retailers earn a service fee of Bt2 to Bt3 per transaction and sell airtime from the three main mobile operators: Advance Info Service, (AIS), Total Access Communication (DTAC) and True Move.

True Move pays the highest airtime rate at 8 per cent per transaction, while AIS and DTAC pay 3 per cent and 3.5 per cent, respectively.

The MP Group is negotiating with the three mobile operators to collect airtime commissions at the same rate for retail agents.

In a good location, a kiosk can sell Bt3,000 of refills per day and break even in four months, Surasak said.

"The company next year will export coin-operated kiosks to other Southeast Asian countries, such as the Philippines, Indonesia and Malaysia, after they win success in Thailand," he added.

Nalin Viboonchart

 The Nation