Advanced Info Service (AIS), the country's largest mobile operator, expects its cash flow to improve in 2017 thanks to a sharp rise in 4G customers, who contribute a higher gross margin.
The company's earnings before interest, taxes, depreciation and amortisation is projected to increase by 44% this year, up from 39% in 2016, said Nattiya Poapongsakorn, vice-president of investor relations and compliance.
She said effective cost-control measures for the year, including a reduction in the company's handset subsidy budget, are set to boost AIS's revenue this year.
AIS expects total service revenue of 129 billion baht in 2017, a 5% increase from 123 billion in 2016. AIS saw slight revenue growth of 1.6% in 2016.
As of March, AIS had 12 million 4G subscribers, representing roughly 30% of its 40.6 million total, compared with 6 million at the end of March 2016.
AIS still has 4 million 2G users and 24.6 million 3G customers.
AIS posted service revenue of 31.4 billion baht in the first quarter of 2017, 57% of which stemmed from high-margin data services.
Average revenue per AIS 4G user is over 400 baht per month, compared with 250 a month for general users.
Ms Nattiya said the surge in AIS's 4G subscribers was because of its wide range of affordable 4G smartphones and the company's attractive promotional campaigns.
AIS will reduce its handset subsidy budget this year after struggling with subsidy costs of 10 billion baht last year.
AIS plans to spend 45 billion baht on telecom network expansion in 2017, 40 billion of which is slated for mobile networks and the remaining 5 billion for fibre-optic networks.
AIS has invested a total of 112 billion baht over the past three years, with 32.5 billion in 2014, 32.2 billion in 2015 and 47.5 billion in 2016.
Ms Nattiya said AIS aims to increase its revenue market share to 50% in 2017, up from 48% as of March.
In another development, Thailand's sole satellite service provider, Thaicom Plc, a subsidiary of InTouch Holdings -- the parent firm of AIS -- urged the government to quickly settle the updated industry fee structure governing new satellites such as Thaicom 9, which is expected to be launched into orbit in mid-2019.
"The further the delay in the implementation of the new fee structure, the greater impact on Thaicom's new satellite launch," said Vuthi Asvasermcharoen, chief financial officer of SET-listed Thaicom Plc.
He said Thaicom is under negotiations with representatives from the government on the matter, but no conclusion has been reached.
"Construction of a new satellite requires at least two years. A clear resolution on the new fee should be settled as soon as possible" said Mr Vuthi, adding that Thaicom is ready to cooperate with the government's policy.
Earlier this section of government -- then led by Deputy Prime Minister ACM Prajin Juntong -- considered revamping the business structure of the local satellite industry in order to maximise benefits from the space economy.
There are four alternative business structures for the satellite industry: a wholly state-owned formula; a shareholding structure under the terms of the 2013 Public-Private Joint Venture Act; a flexible joint venture model between the state and private sector; and a liberalised model plus a higher operating fee structure.
The move came after the cabinet in 2016 issued a resolution that Thaicom 7 and 8 must return to the old concession system instead of a licensing regime, meaning Thaicom must pay an annual concession fee of 20.5% for Thaicom 7 and 8. That rate is a sharp hike from 5.75% fee under the licensing system.
Thaicom's new satellites will fall under the new business structure.
The company operates three satellites under a concession regime: Thaicom 4 or iPSTAR, a broadband satellite; and Thaicom 5 and 6, both of which are broadcasting satellites.
But Thaicom 7 and 8 operate under a single licence from the NBTC, entailing the 5.75% rate.
Thaicom reported service revenue of 1.95 billion baht in the first quarter of 2017, down 18% year-on-year.