AIS scales back 3G spending

Advanced Info Service (AIS) plans to scale down its third-generation (3G) Investment plan in light of the global financial crisis and the country's economic situation.

The country's largest mobile operator plans to spend only US$150 million on 3G mobile broadband services on its existing 900 Megahertz frequency by mid-2009. Approximately 200-300 3G base stations would be installed in just 10 provinces. Commercial 3G services in Bangkok would start in the fourth quarter of this year.

Earlier, AIS had set aside US$600 million for the first phase of 3G services in Bangkok and 20 major provinces. The company had allocated an additional 17 billion baht to expand its conventional 2G network capacity this year.

President Wichian Mektrakarn said the company now needed to carefully revise its investment budget as shareholders had raised doubts about the necessity of full-scale commercial 3G services in Thailand.

"In the current economic situation, interest costs for borrowing money from foreign institutions will be high," he said yesterday at ceremonies marking the 18th anniversary of the company founded by deposed prime minister Thaksin Shinawatra.

He also said that AIS would not cease further spending despite having used two-thirds of the 17-billion-baht budget on 2G investment projects.

Mr Wichian admitted that 3G data usage by AIS customers in Chiang Mai was still low, with an average of only 20 megabits per day per user.

However, he said that the Thai telecom industry had not felt any impact from the economic slowdown so far in term of revenue.

AIS yesterday introduced a new slogan "AIS Nearby You" with a new "Nong Aun Jai" logo. The 80-million-baht brand-refreshment campaign, to be carried out under a six month programme, is aimed at creating a more contemporary and youthful corporate image.

Under a change from a functional to emotion-based concept, AIS plans to focus on five pillars: network quality, service excellence, service advancement, privileges and social responsibility.

Shares of AIS (ADVANC) closed yesterday on the Stock Exchange of Thailand at 82.50 baht, up two baht, in trade worth 611 million baht.