Uncertain climate may

By Kwanchai Rungfapaisarn
The Nation
Published on November 13, 2008

RS Digital anticipates a growth slowdown in its business next year, based on economic and political instability and a delay in introducing its thirdgenera¬tion (3G) mobile broadband technology.

Senior executive vice president Yanyong Akrajindanon said his company expected its digital business, both online and mobile phones, to grow 40 per cent to Bt350 million this year, with about Bt275 million of that from mobiles.

"We're quite satisfied with our performance this year amid the poor economic situa¬tion. The financial crisis and political uncertainty have not affected the company's per¬formance over the past couple of months," said Yanyong.

"However, we expect next year's revenue from our digital business to increase more slowly, about 30 per cent. Our target of Bt450 million will be influenced negatively by the economic and political insta¬bility, which will lead to a sus¬pension of new investment on the part of mobilephone net¬work operators."

Yanyong said the govern¬ment was not promoting new broadband technologies or other initiatives to drive the growth of Thailand's online industry.

"We often ask network operators when they will intro¬duce 3G technology, so we can develop our digital content to incorporate the new mobilephone technology," he said.

Yanyong said most mobilephone network operators needed new investment capital to initiate 3G technology but that local banks and other financial institutes were now being more cautious about granting loans to the business sector.

The new 3G technology enables cellular operators to beam bandwidth content like live video to 3Gphone users. Cellular operators are still waiting for the National Telecommunications Commission to grant 2.1gigahertz spectrum licences to develop 3G service.

Vice president Paul Manatthaworn said the company had developed digital content for mobiles capable of using the new 3G technology, including the launch of music and video content that was similar to CD quality.

The company expects the contribution of a ringback tone service to increase the revenue contribution of its mobile business to 60 per cent this year, from 50 per cent before. The other 40 per cent will come from other mobile content, such as a full songdownloading service.

Paul predicts the company's Zheza digital community, launched in April 2007, will grow four or fivefold. New features, including Shopping Mall and Zheza Pet sections and new games, will be added. The community now attracts more than 1.5 million visitors a month.

{literal}

{/literal}

{literal} {/literal}

Uncertain climate may

RS Digital anticipates a growth slowdown in its business next year, based on economic and political instability and a delay in introducing its thirdgenera¬tion (3G) mobile broadband technology.

OTHER BUSINESS

Top Stories