Total Access Communication Plc (DTAC) has unveiled details of a massive strategic shake-up designed to improve performance.
The plans entails a refocus of its investment in 3G and 4G network coverage, expanding its marketing footprint across the country and enhancing the effectiveness of interdisciplinary team working, said Lars-Ake Norling, who became chief executive on April 1.
"We want to transform our operating model by simplifying our management and marketing structures, monetising mobile internet traffic and becoming more efficient in the way data are delivered — efforts designed to improve our revenue," he said. "We are aiming to become a leading mobile internet service provider with strong 3G network coverage."
The country's largest mobile operator wants 60% of its 28.4 million mobile subscribers to use the internet on their phones by the end of this year, up from 50% last year.
Up to 85% of DTAC mobile subscribers will access the internet over the next few years, said Mr Norling.
About 40% of DTAC's revenue comes from data services. Thais spend an average of three hours per day on mobile internet, longer than the amount of time they spend watching TV, he said.
"We have seen a crazy increase in mobile data traffic in Thailand, with high potential for the market over the next few years," said Mr Norling.
About 52% of mobile users in Thailand own a smartphone, with about 10% of smartphones having 4G capability.
The International Telecommunication Union forecasts 3 billion people will be online by year-end. However, 4 billion are still offline.
DTAC is confronting the challenges of both internal and external threats including the downward trend in its operating performance and the sudden resignation of its four chief marketing executives.
Despite a decline in revenue last year, DTAC is beginning to see signs of recovery, bolstered by the strong growth of data revenue, Mr Norling said.
DTAC has increased spending on its 3G and 4G network coverage expansion this year from 14 billion to 20 billion baht as its first step to turn round its operating performance.
"We want to expand our 3G network to reach 95% of population coverage by the end of this year, up from 85% now," Mr Norling said.
DTAC had 28.4 million mobile subscribers as of March 31. Of the total, 16 million were 3G customers and 1 million 4G users.
Mr Norling said DTAC expected its revenue to grow at a low single-digit rate, about the same as last year, due to the country's sluggish economy and weak consumption.
However, the impact of the economic downturn on the telecommunications industry is less than in other sectors.