SET-listed Total Access Communication Plc (DTAC) is implementing a set of survival measures in a bid to maintain its mobile revenue market share over the next three years or until its second-generation (2G) mobile concessions expire.
The country's second-largest mobile operator has existing deals with concession owner CAT Telecom to provide 2G mobile service on the 1800-megahertz spectrum and 3G service on the 850MHz spectrum. Both concessions are due to expire in 2018.
"To maintain our current 28% market share in terms of revenue over the next three years is our highest priority, until the next spectrum auctions take place," said Ariya Methasath, senior manager for investor relations.
Accelerating mobile network expansion, implementing effective marketing strategies and giving away free 3G and 4G smartphones are three focal areas for DTAC over the next three years.
Mr Ariya said DTAC set aside a three-year investment budget of 70 billion baht for an aggressive nationwide expansion of its 4G wireless network. About 20 billion baht will be spent this year on the expansion.
The company is increasing 4G bandwidth by an additional 5MHz to a total of 20MHz on its existing 1800MHz spectrum for 4G service.
The bandwidth increase will make DTAC the only mobile operator providing 4G service on 20MHz of one spectrum. This can accommodate a wider range of 4G mobile capabilities and handset prices.
DTAC is not only giving away free 4G smartphones to attract customers but also offering up to a 75% discount on high-end 4G handsets under a promotional budget of 2 billion baht.
Mr Ariya acknowledged that DTAC's failure to secure a 4G licence in the recent auctions was a critical factor in the company's stepped-up campaign.
DTAC has concrete plans to win back the 1800MHz spectrum, now used by DTAC and due to expire in 2018, on the strength of its financial health and lack of financial burdens.
The company has reduced its existing dividend payment from 80% of net profit on a quarterly basis to 50% of net profit semi-annually.
DTAC achieved service revenue of 66.2 billion baht last year, down by 3% from 2014.
The company projects flat or slightly higher service revenue this year.
Its profit margin before interest, tax, depreciation and amortisation is expected to stand at 27-31% this year, down from 31.8% last year and 34.1% in 2014.
DTAC shares closed yesterday on the SET at 32.75 baht, down one baht, in trade worth 473 million baht.