DTAC delays 3G launch past Q2 2009

DTAC, the country's second-largest mobile operator, has postponed its launch of commercial third-generation (3G) services beyond the second quarter of next year, saying it wants to see stronger demand for mobile data usage.

The decision was made by new chief executive Tore Johnsen, who took the helm of DTAC on Sept 15, succeeding Sigve Brekke, who is now the CEO of Telenor Asia.

Earlier, DTAC planned to begin 3G mobile broadband service in Bangkok, Chon Buri and Phuket in the first quarter of next year. Nationwide service was to be available by mid-2009 under a five-billion-baht investment plan.

The revision comes even though DTAC has an advantage over its rivals in the race to 3G because its existing analogue 850 Megahertz frequency can be upgraded quickly to high-speed download packet access (HSDPA) technology with wider coverage capacity.

The company under Mr Brekke announced that it wanted to be the sole operator offering 3G service nationwide for at least one year. But Mr Johnsen said: "There is no need to rush into offering 3G services as long as demand for mobile data is still not there."

"We want to make sure that the Thai market is more than ready for 3G, particularly in the mobile data service area," he said yesterday at the introduction of his first promotional campaign.

DTAC will expand the 3G network on a continuous basis to cope with demand. Mr Johnsen said mobile high-speed internet or 3G was different from wireless broadband as the number of mobile data users was quite small when compared to more than one million wireless broadband subscribers.

He also said that he would make no changes in the company's organisational structure and business directions. Instead, the company will continue to focus on a strong corporate culture and teamwork, as well as improving networks and promoting 3G services.

Mr Johnsen admitted that DTAC, like other businesses, had been affected by the global financial crisis, the country's lingering economy, political problems and high oil prices."All these factors combined have reduced people's purchasing power and depressed the demand for products and services."

DTAC has already revised its revenue growth target from 10% to 5% this year. But it has maintained its new subscriber growth target, aiming to add 3-3.5 million new customers this year.

DTAC now has 18 million subscribers, 90% of whom are prepaid customers. However, Mr Johnsen said DTAC would start to see uplift again in 2009, helped by an improved economic situation, financial development and the company's aggressive marketing and promotional campaigns.

As part of the strategy, DTAC joined with KFC yesterday in offering a 'KFC Happy SIM'. The 49-baht prepaid SIM card will be available at 339 KFC branches, enabling customers to make free calls for the 1150 KFC delivery service, with special tariff rates plus free meals at KFC.