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OPINION: Customers Hold Key to Victory in Thai Telecommunications Battle.
Byline: Peter Walter
Oct. 3--It seems like only yesterday that Thailand's mobile telecom industry was a profitable place to be. Two operators virtually dominated the market, handset margins hovered above 50 percent, call rates were much higher, and subscribers were largely post-paid customers who generated average monthly revenue of more than 1,000 baht.
What a difference a year or two can make. While subscriber growth has exceeded expectations with more than one million new customers each month, increased competition and market penetration are changing the economics of the business.
Even before the entry of TA Orange earlier this year, call rates and handset prices started coming down, as AIS and DTAC vied for their share of new subscriber growth. Since TA Orange's launch, promotional battles have become even more intense in the struggle to win new customers. The planned entry of two additional operators in the near future will only intensify pricing pressure and customer switching, or churn.
Increased mobile penetration means that new customers represent ...
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Source: HighBeam Research, OPINION: Customers Hold Key to Victory in Thai Telecommunications...