CAT expects new 4G service to help it earn Bt3 bn in 2017

Corporate December 19, 2016 01:00


CAT TELECOM projects revenue of Bt3 billion from its mobile telecommunications business next year, mainly driven by its recently launched fourth-generation wireless broadband service.

CAT’s mobile-phone business earns money from two channels: its own “My” brand 3G service and its share of the revenue earned by its five MVNO (mobile virtual network operator) partners.

My recently launched a 4G service through a partnership with True Corp. This made the state agency the fourth 4G service provider in the country.

Viroj Tocharoenvanith, CAT’s senior executive vice president for wireless business, said that of total forecast revenue in the new year, Bt2.6 billion would be generated by My 3G and 4G services, up from Bt1.6 billion this year. The remaining Bt400 million will be contributed by MVNO partners, up from Bt160 million this year.

CAT’s My brand targets a total of 2 million subscribers next year, 2 per cent of the overall market, up from 1.7 million users or a 1.7-per-cent market share this year.

My currently posts average monthly revenue per prepaid user of Bt80, while its post-paid service brings in Bt420 a month. Of its total subscriber base, 90 per cent are prepaid users.

Viroj said CAT aimed for its 4G service to boost its average revenue per user to Bt480 a month for post-paid service and Bt100 for prepaid.

“We have positioned My as a price-competitive mobile-phone service. We believe we can compete with other operators,” Viroj said.

In addition, CAT will tap the corporate segment by offering them bundled packages of airtime and subsidised mobile devices.

Next year CAT will spend Bt280 million on My marketing campaigns and another Bt100 million on handset promotional packages, aiming to have at least 2 million subscribers by the end of 2017. This year CAT’s marketing budget was only Bt100 million.

The state agency says it has more than 100,000 channels where customers can top up prepaid accounts, including 7-Eleven convenience stores, Boon Term prepaid refill booths, and online. 

CAT is expected to acquire two more MVNO partners soon.