ICC-ASIA Co., Ltd. - The Leading GPS Monitoring Systems Provider in Thailand

$400m to be invested to upgrade network
Srisamorn Phoosuphanusorn

Somprasong: 'solution-based'

Cellular operator Advanced Info Service yesterday announced a clearer strategy to put its information technology functions under the solutions unit and telecom network functions under the operations unit.

The integration strategy is expected to at least double the company's mobile data service revenue to two billion baht and the number of regular mobile data users to one million, said president Yingluck Shinawatra.

Chairman Somprasong Boonyachai said the strategy was intended to reduce redundancies in operations, improve efficiency, offer a larger variety of integrated solutions with faster service, increase customer satisfaction and maximise the utilisation of the company's networks.

AIS will transfer the existing 300 employees involved in IT functions to the solutions unit and add almost 1,000 staff currently in charge of network functions to the operations unit.

The move reflects a global trend in the telecoms industry, in which IT and wireless businesses are no longer separated.

''With our mission to become a wireless service provider, the move is to step away from a transaction-based to a solution-based company,'' Mr Somprasong said, adding that another reorganisation scheme would be implemented this year if AIS saw any new trends being driven by market demand and customer behaviour.

The country's largest wireless operator expects non-voice revenue of seven billion baht this year, compared with five billion baht last year. The company is expected later this month to report total revenues of 90 billion baht for 2003.

Under the new structure, Arpattra Sringkarrinkul has been appointed executive vice-president for the solutions business unit, responsible for technology management and development, and technical competency development.

Wichian Mektrakarn has been appointed executive vice-president for operations, taking charge of nationwide operations and network and service operations in metropolitan areas.

Mr Wichian said he expected the unit to provide between 10 and 20 value-added services per month this year, compared with fewer than 10 previously.

The company plans to invest 14 billion baht (about $400 million) in capital expenditures this year, $100 million short of the amount it had announced earlier.

Mr Somprasong said the $400-million budget was enough for AIS to upgrade and expand its network, especially data transmission.

Mr Wichian said $350 million would be spent on upgrading the company's IT system and expanding capacity to serve another two million users.

AIS currently has more than 9,000 base stations nationwide, capable of serving up to 14 million subscribers.

AIS invested about 40 billion baht in both 2001 and 2002 when the number of mobile users more than doubled, but expectations of slower growth his year prompted it to scale down its investment.

It had 13.24 million subscribers at the end of 2003 and expects to register more 1.8 million new subscribers this year.

In the first nine months of 2003, data revenues were about one billion baht, accounting for a quarter of non-voice revenues of four billion baht, he said.

AIS shares closed yesterday at 86 baht, down 3.50 baht, in trade worth 363.14 million baht.

From Bangkok Post , Feb 13,2004