ADVANC: Challenging the Home Internet Market

Advanced Info Service Public Company Limited (ADVANC) reported a total revenue of 172,890 million baht for the year 2020, a decrease of 4.4% YoY and a net profit of 27,434 million baht, declined 13.7% from 31,190 million baht a year earlier. 

 

Mobile revenue was 118,082 million baht, dropping 6.5% compared to the same period of last year of 126,341 million baht, as the result of a loss of revenue from the traveler segment impacted by a travel restriction during Covid-19 pandemic.  

 

At present, AIS has total subscribers of 41.4 million consisting of 10.2 million postpaid subscribers and 31.2 prepaid subscribers, still remaining as Thailand’s telecom service operator with the largest market share (both revenue and number of subscribers).

 

Even though the overall FY20 performance has been triggered from a declining profit and revenue, the fixed broadband business has turned out to show significant growth.

 

AIS Fibre subscribers jumped 29% or more than 299,300 vs. overall market growth of 10-12%, bringing to total subscribers of 1.33 million as 2020 ends. While revenue from this business grew 22% YoY to 6,959 million baht.

 

Apparently, an increasing by leaps and bounds in AIS Fiber over the past few years has challenged two Thailand’s largest internet service providers; True Corporation Public Company Limited (TRUE) and Triple T Broadband Public Company Limited (3BB), a subsidiary of Jasmine International Public Company Limited (JAS).  

 

Despite AIS being new for this industry, its customer base has expanded rapidly. Therefore there is a charge for AIS to snatch the throne from TRUE and 3BB. 

 

Well…In the case of TRUE customers, it might be difficult to grab their attraction because of TRUE’s strategy of selling a combined home broadband internet and mobile data package. However, TRUE has to bear in mind that nowadays customer loyalty is decreasing, they could run away anytime they encounter a better offer.

 

On the other hand, acquiring 3BB/JAS’s customers is much easier due to the lack of mobile data services. Previously, 3BB/JAS has entered into business collaboration with Total Access Communication Public Company Limited (DTAC), but there is not any progress until now.