Form 56-1 Year 2007
2.
2.1
Advanced Info Service Plc.
Nature of Business
Brief History and Key Development
Key Development before 2007
1986
Advance Info Services Public Company Limited (“the Company” or “ADVANC) was established
as a registered company on 24th April 1986, to provide leasing and computer service.
1989
Shinawatra Computer and Communications Public Company Limited, currently known as Shin
Corporation Public Company Limited (“SHIN”) became the major shareholder of AIS, holding
60% shares of the Company’s registered capital. Its business objective shifted to providing
telecommunications services.
1999
On 19th February 1999, Singtel Strategic Investments Private Limited (“SingTel”), a group
company of a Singapore-base Singapore Telecommunications Pte. Ltd., operating communications
technology and telecommunications business, became one of the shareholders. SHIN and SingTel
held 43.06% and 19.35%, respectively.
In February 1999, AIS increased its shareholding proportion from 60.00% to 99.99% in the
Advance Paging Company Limited (APG) (originally called Shinawatra Paging Company
Limited), which operated paging service business. However, APG operations came to an end due
to a significant decrease in paging service popularity, coupled with a decrease in the cost of mobile
phone which allowed customers to gain easier access to mobile phone. A joint partnership contract
was returned to TOT in June 2002. In September 2002, APG was sold to other company and
therefore separated from AIS group.
In October 1989, AIS bought shares in Advance Datanetwork Communications Co., Ltd. (ADC)
(originally called Shinawatra Datacom Company Limited) in the proportion of 67.95% and bought
49% shares in the Datanetwork Solutions Company Limited (DNS). Both companies operate
information communication service via phone network.
2001
In accordance with the resolution of the Extraordinary Shareholders’ Meeting No. 2/2001, held on
20th August 2001, the meeting approved share purchase in Shin Digital Company Limited (SDT)
from SHIN and SingTel in the proportion of 99.99 % or equivalent to a total investment cost of 540
million Baht. SDT at the time held 97.54% share in Digital Phone Company Limited (DPC), a
GSM1800 mobile phone operator as well as importer and distributor of mobile phones. AIS
provided financial support to SDT at the amount of 17,300 million Baht to pay debts to SHIN and
SingTel. AIS also arranged for an allocation of a total of 23.5 million undistributed ordinary shares
where 17 million shares were allocated to SHIN and 6.5 million to SingTel which accounted for the
total value of 10,024 million Baht for future investment.
In September 2001, AIS invested in the GSM1800 mobile phone system operated by DPC, with an
already paid registered capital of 8,556 million Baht. The investment was in the proportion of
99.99% in SDT, which at the time held a 97.54% in DPC.
In accordance with the resolution passed by the Board of Directors’ meeting No. 8/2001, held on
13th November 2001, the board approved a share purchase from Digital Phone Company Limited
(DPC) in the proportion of 98.17% or equivalent to the total investment cost of 20,300 million Baht
from SHIN Digital Company Limited (SDT). This would enable AIS to pay for the existing debt
and reduce burden of interest on revenue tax. AIS bought share from DPC on 17th December 2001,
which made AIS a direct shareholder of DPC.
2002
In accordance with the resolution passed by the Board of Directors’ meeting No. 5/2002, held on
16th July 2002, the board approved additional investment of 300 million shares in DPC, calculated
at 3,000 million Baht. As a result, in October 2002, AIS held 98.55% of the registered capital in
DPC.
In December 2002, AIS restructured its mobile phone import and distribution business of Advance
Wireless Marketing Company Limited (AWM) by transferring AWM operations to DPC, one of
Part 2 page 11
Form 56-1 Year 2007
Advanced Info Service Plc.
AIS’ subsidiaries in order to enhance effectiveness of the overall business operations. (AWM
temporarily held off its operations).
2003
AIS received AA rating for the Company’s credibility and debentures by TRIS Rating Company
Limited, moving up from the previous AA- level.
2004
AIS received an AA (tha) long-term domestic credit rating from Fitch Rating (Thailand) Company
Limited (Fitch) in recognition of its stability and F1+ (tha) short-term domestic credit rating which
reflected the Company’s strong financial status and market leadership.
AIS received a BBB+ rating from Standard & Poor’s (S&P), moving up from the BBB rating. The
level of credibility of private organization is equivalent to credibility of Thailand, reflecting AIS’
strength for being the largest mobile phone service provider in the country.
2005
In July 2005, AIS was named Best Performance company under the Technology category, Best
Investor Relations, and Best Corporate Governance Report Company by the Stock Exchange of
Thailand and Finance and Banking Magazine at the SET Award 2005.
In August 2005, AIS officially launched the Advance mPAY Company Limited, a join venture
between AIS and NTT DoCoMo Incorporation Company to provide mobile financial transaction
service.
In September 2005, AIS debentures were divided into six tranches. Payments for the Tranch No.
1/2001 is due in 2006 (AIS063A), Tranch No.3/2001 is due in 2006 (AIS06NA), Tranch No.1/2002
is due in 2009 (AIS093A), Tranch No.2/2002 is due in 2009 (AIS093B), Tranch No.3/2001 is due
in 2007 (AIS073A), and Tranch No.4/2001 is due in 2007 (AIS07OA). Therefore the meeting
approved the Company to pay the dividends in each year to the shareholders at the amount of over
40 per cent of the net profit, providing that the Company’s received credibility rating of not below
AA at least 45 days before the Board of Directors approved payment of the dividends.
In October 2005, AIS received A- rating from Standard and Poor's (S&P), moving up from the
previous BBB+ rating, which reflects the company’s strength from being the largest mobile phone
service provider in Thailand.
AIS joined together with Communications Authority of Thailand Public Company Limited to offer
a single service invoice for both domestic and international calls as well as automatic international
service for greater convenience of customers.
2006
On 23rd January 2006, major shareholding group of Shin Corporation Public Company Limited
(“SHIN”) sold shares to Cedar Holding Company Limited (“Cedar”) and Aspen Holding Company
Limited (“Aspen”). Cedar and Aspen were obliged to make a tender offer for all securities of the
Company (Voluntary Tender Offer) at 72.31 Baht per share. The resolution of SHIN’ s Board of
Directors’ meeting No.1/2006 held on 23rd January 2006, stated that SHIN would not sell the
proportion of SHIN ordinary shares as the business generate major revenue for the Company and
SHIN has continued to maintain effective operating results.
In November 2006, AIS signed an Interconnection agreement with Total Access Communications
Public Company Limited (DTAC).
Key Events in 2007
February
AIS signed an Interconnection agreement with True Move Co., Ltd.
TRIS Rating Co., Ltd., a Thai local rating agency affirmed “AA” corporate and debenture credit
rating for AIS.
Fitch Ratings Ltd., an international credit rating agency, affirmed AIS’s long-term local currency
issuer credit rating of “AA” and long-term foreign currency issuer rating of “BBB+” with rating
watch negative given regulatory and legal environment that could potentially affect the telecom
operator.
Part 2 page 12
Form 56-1 Year 2007
Advanced Info Service Plc.
AIS partnered with Google, one of the world’s largest search engines, to provide mobile internet
service.
AIS ‘Sarnrak-Kon Keng Hua Jai Krang” (Strong Heart, Great Man), a television documentary
received the Television Gold Award 2006 in the “Knowledge Promotion of Moral and Code of
Conduct” category. The award was presented by the Television Promotion Club, Chamnong
Rangsikul Foundation and Office of the National Culture Committee
March
The Board of Directors’ meeting No. 3/2007 approved the appointment of Mr. Vikrom Sriprataks,
Chief of Technology Officer (CTO), as the Chief Executive Officer (CEO), responsible for wireless
communications business, in place of Mr. Somprasong Boonyachai, who remains the Company’s
Executive Chairman. The appointment was effective on 1 July 2006.
AIN GlobalComm Co., Ltd. (AIN) officially launched its international telephone service accessed via
the 005 dialing prefix.
April
At the 2007 Annual General Meeting of Shareholders, the shareholders passed a resolution to
approve a declaration of dividend for 2,955 million shares of Baht 3.30 per share, equivalent to a total
of Baht 9,750 million. The dividend declaration was for the six-month operational period from 1 July
to 31December 2006.
AIS was a proud recipient of the 2007 Outstanding Consumer Television Advertising awards,
organized by the Consumer Protection Association. AIS was the first runner-up for the “Shaving”
advertising and the second runner-up in the Social, Art and Culture and Environmental Promotion
category for the “Always Smile” advertising.
May
Wireless Device Supply Co., Ltd. (WDS) was registered with the Ministry of Commerce as an
importer and distributor of mobile phones and related accessories. Previously this business was
undertaken by Digital Phone Co., Ltd. (DPC).
AIS announced an appointment of Mr. Somchai Lertsutiwong as Executive Vice President
Marketing, responsible for determining strategies and policy related to management of marketing
products including the pre-paid and post-paid services, international roaming service, Serenade and
individual customers.
June
The Board of Directors’ meeting No. 4/2007 approved the Company’s investment in Bridge Mobile
Pte Co., Ltd. (Singapore), which was formed through a joint force of mobile operators from 10 Asia
Pacific countries to support the international roaming service. AIS purchased 2.0 million shares in
Bridge Mobile, representing 10% of its registered capital and equivalent to US$ 2.7 million.
Standard & Poor’s (S&P), an international credit rating agency affirmed ‘A-’ corporate credit rating
for AIS but revised outlook to negative from stable given the intense competition and regulatory
uncertainties that could potentially affect the Company’s credit metrics.
GSM advance joined its business alliance with ROK TV, the UK-based mobile TV developer, in
launching ROK TV on mobile service. For the first time in Thailand, cable TV programs are
available on mobile phone.
AIS and Microsoft launched AIS Smart Office services, offering e-mail solution and enterprise
messaging solution to corporate users.
July
AIS announced new management appointments in order to enhance operational effectiveness namely
Mrs. Vilasinee Puddhikarant, as Vice President, Customer & Service Management responsible for
customer relations management or CRM; Mr. Komsan Buppanimite as Vice President, Channel
Management responsible for marketing channel, distribution, agents, Telewiz shops and pay station;
Part 2 page 13
Form 56-1 Year 2007
Advanced Info Service Plc.
Mr. Waroonthep Watcharaporn as Managing Director Advanced MPAY responsible for mPAY
financial transaction on mobile; and Mr. Surawat Shinawatra as Managing Director Advanced
Contact Center responsible for management and customer service at the Call Center.
Digital Phone Co., Ltd. (DPC) launched its house brand mobile phone called “Phone One”.
AIS One-2-Call! launched its first brail letters prepaid card for customers who are visually impaired.
Part of the proceeds was donated to the Blind Association of Thailand.
August
The Board of Directors’ Meeting No. 5/2007 passed a resolution to approve a declaration of interim
dividend for 2,957 million shares of Baht 3.00 per share to the Company’s shareholders, equivalent to
the total of Baht 8,871 million. The interim dividend was declared for the six-month operational
period from 1 January to 30 June 2007.
AIS was awarded the “Best in Corporate Governance” by The Asset Magazine at The Asset
Magazine’s Annual Corporate Governance Ranking 2007.
FinanceAsia Magazine presented a second-runner up award for the “Most Committed to a Strong
Dividend Policy in Thailand” to AIS.
Super Broadband Network Co., Ltd. (SBN) was granted a Type-3 facility-based license from the
National Telecommunications Commission (NTC) to operate facility-based telecommunication
services to the public.
September AIS officially opened its new call center at the Foundation for the Blind in Thailand under the Royal
Patronage of H.M. the Queen to offer job opportunity for the blinds and visually impaired persons as
AIS call center’s staffs.
October
AIS received the 2007 Plaque of Appreciation from the Ministry of Social Development and Human
Security for its “Sarnrak-Kon Keng Hua Jai Krang” television program as a social contribution
project that helps those who are in need.
Super Broadband Network Co., Ltd. (SBN) was granted a Type-1 license from the NTC to operate
the internet service. The Company also received a Type-2 license from NTC to operate the
international internet gateway service.
December
Super Broadband Network Co., Ltd. (SBN) was the first operator to start a VoIP trial service, through
cooperation with the Thai Chamber of Commerce University. This new service was launched under
the name “AIS Net Call”, which was available for the university students on WiFi network and set to
be officially launched in January 2008.
Part 2 page 14
Form 56-1 Year 2007
2.2
Advanced Info Service Plc
Business Overview
Advanced Info Service Public Company Limited (“The Company” or “ADVANC” or AIS) was established in
1989, and is today the largest mobile operator in Thailand with 46% share of the subscriber market share and
more than 97% nationwide coverage. AIS is a publicly listed company in the Stock Exchange of Thailand (SET)
since 1991. As of 2007, the company’s market capitalization of approximately Baht 287 billion (USD 8.6
billion) is among the top five listed companies on the SET. The company’s major shareholders are 43% Shin
Corporation Plc. and 21% SingTel Strategic Investments PTE Ltd. The remainder 36% is free-float owned by
institutional and retail investors.
AIS operates 900 MHz GSM network, currently with GPRS and EDGE capability. AIS operation is under a 25year build-transfer-operate (BTO) contract granted by TOT Corporation Public Company Limited (TOT),
started from 1990 to 2015. Under the BTO agreement, AIS is required to build and raise capital for investment
in cellular network and transfer the network ownership to TOT. The company is entitled to the right for entire
commercial operation, including network engineering & planning, equipment procurement and installation,
network maintenance and service commercialization. In compensated to such economic use, AIS is entitled to
share its revenue from service to TOT in term of revenue share, currently, at 30% of its postpaid revenue
(excluded VAT) and 20% of its prepaid revenue (included VAT).
AIS also operates 1800 MHz GSM network through its subsidiary, Digital Phone Co., Ltd. (DPC). DPC
operates under a 16-year BTO contract from CAT Telecom Public Company Limited (CAT), started from 1997
to 2013. Under the agreement, DPC is entitled to pay revenue share to CAT, currently at the rate of 25% of its
revenue from mobile phone operation. DPC also has a network roaming agreement with AIS to enable
nationwide service to the GSM 1800 customers as well as to the GSM advance customers to provide better
network service quality for both networks.
In addition to mobile network service, AIS also invests in a 99.99% owned subsidiary, Wireless Device
Network Co., Ltd. (WDS), to run sales and distribution of handset, SIM card and refill card, previously
undertaken by DPC, another subsidiary. The handset sales and distribution business in its nature has very thin
margin; AIS operate this business as a strategic move for company to be able to influence the handset market in
term of handset models that support the Company’s new service applications. SIM card and refill card are
distributed through over 350 authorized Telewiz shops and more than ten thousands of general dealers and subdealers nationwide. In 2007, contribution revenues from this business to the Company’s total revenues
accounted for 4.50%.
AIS operates its own call center business through its subsidiary, Advanced Contact Center Co., Ltd. (ACC).
With over 2,200 well-trained call center staffs, the Company is able to provide superior service quality to its 24
million subscribers. Call center is turning into the key differentiator for the Company as its services has been
evolving from simple after-sales problem solving related to billing and service experience to undertaking more
proactive and customer-oriented approach in promoting new marketing campaigns and suggesting new products
and services to both existing and new customers.
In March 2007, the Company commercially launched its new business to provide international telephone service
under AIN GlobalComm Co., Ltd. (AIN), a wholly owned subsidiary of AIS. AIN is awarded a 20-year license
ended in 2026 from the National Telecommunications Commission (NTC), which allow them to service through
its own international gateway facility. Under the license term, AIN is entitled to pay a total regulatory fee of 7%
of its revenues; 3% of which is an annual license fee and 4% is Universal Service Obligation (USO) fee.
Another prospect growth area for AIS is mobile payment business under Advanced MPAY Co., Ltd. (AMP), a
joint venture between AIS with 69.99% and NTT DoCoMO with 30% shareholding. AMP received a license
from the Bank of Thailand to provide payment services based on the electronic cash card under “mPAY” brand.
mPAY enables AIS’s customers to conveniently and securely engage in various financial transactions via
mobile phones. Services cover many daily-life transactions including online shopping, bill payment, recharge of
prepaid phone credit as well as payment for goods and services.
Part 2 page 15
Form 56-1 Year 2007
Advanced Info Service Plc
On 23 January 2008, AIS acquired 30% stake in AMP from NTT DoCoMo. After acquisition, AIS shareholding
percentage in AMP increased to 99.99%.
Going forward, AIS is looking to expand its business into fixed lines area focusing on providing data services as
oppose to the traditional voice service. The business is expected to run through its 99.93% subsidiary, Super
Broadband Network Co., Ltd. (SBN). In 2007, SBN already obtained licenses from NTC to operate internet
(ISP), internet gateway and broadband, voice over IP, and IP television. On 17 January 2008, SBN received a
WiMAX trial license from NTC. Trial license has a period of 90 days and can be tested in specific areas.
Group structure
AIS currently invests in 12 subsidiaries, employing approximately 8,000 people. As at end of December 2007.
Details of subsidiaries are as follows:
Company
Digital Phone Co., Ltd. (DPC)
Type of business
Network operator of 1800 MHz GSM
% of
holding
98.55%
Advanced Data Network
Communications Co., Ltd. (ADC)
Service provider of online data
communication service via telephone
landlines in Bangkok and metropolitan area.
51.00%
Advanced Contact Center Co., Ltd.
(ACC)
Data Network Solutions Co., Ltd.
(DNS)
Service provider of call center service
99.99%
Service provider of online data
communication service via telephone
landlines in provincial area.
49.00%
Data Line Thai Co., Ltd. (DLT)
Internet service provider, currently under the
process of closing its operation
65.00%
Mobile From Advance Co., Ltd.
(MFA)
Advanced MPAY Co., Ltd. (AMP)
Currently not in operation
99.99%
Service provider of payment business via
mobile phone
69.99%*
Advanced Magic Card Co., Ltd.
(AMC)
AIN GlobalComm Co., Ltd. (AIN)
Distributor of cash card
99.99%
International telephone service/gateway
provider
99.99%
Super Broadband Network Co., Ltd.
(SBN)
Service provider of internet (ISP), internet
gateway and broadband, voice over IP, and IP
television.
Importer and distributor of handset and
accessories
99.93%
Currently not in operation.
99.93%
Wireless Device Supply Co., Ltd.
(WDS)
Advanced Wireless Network Co., Ltd.
(AWN)
99.99%
* On 23 January 2008, AIS acquired 30% stake in AMP from NTT DoCoMo. After acquisition, AIS
shareholding percentage in AMP increased to 99.99%.
Part 2 page 16
Form 56-1 Year 2007
Advanced Info Service Plc
INVESTMENT STRUCTURE OF SHIN GROUP (As of 4 February 2008)
Shin Corporation Plc. 1), 2)
98.55%
52.92%
41.28%
42.71%
Advanced Info Service Plc. 2)
ITV Plc. 2)
Shin Satellite Plc. 2)
Digital Phone Co., Ltd.
51%
60.00%
100%
99.99%
99.99%
99.99%
99.93%
49.00%
99.93%
99.99%
Cambodia Shinawatra Co., Ltd.
Artware Media Co., Ltd.
99.99%
Payment Solution Co., Ltd.
Media Connex Co., Ltd.
CS LoxInfo Plc. 2)
Advanced Datanetwork Communications Co., Ltd.
49.00%
99.99%
99.99%
Shenington Investments Pte Ltd. 1)
Wireless Device Supply Co., Ltd.
39.89%
51.00%
I.T. Applications and Services Co., Ltd.
99.99%
Shin Broadband Internet (Thailand) Co., Ltd.
99.99%
99.99%
Advanced Contact Center Co., Ltd.
99.14%
99.86%
Advanced MPay Co., Ltd.
AD Venture Co., Ltd.
99.99%
Super Broadband Network Co., Ltd.
99.99%
Advanced Wireless Network Co., Ltd.
60.00%
Hunsa Dot Com Co., Ltd.
Sodamag Corp Co., Ltd.
Watta Classifieds Co., Ltd.
Mobile from Advance Co., Ltd.
71.85%
N.T.U. (Thailand) Ltd.
IPSTAR Australia Pty Ltd.
1)
Shineedotcom Co., Ltd.
99.99%
Data Network Solutions Co., Ltd.
Matchbox Co., Ltd.
Loxley Information Services Co., Ltd.
99.99%
AIN GlobalComm Co., Ltd.
99.96%
IPSTAR Co., Ltd.
100%
Advanced Magic Card Co., Ltd.
Lao Telecommunications Co., Ltd.
Teleinfo Media Plc.
99.99%
100%
IPSTAR New Zealand Ltd.
100%
IPSTAR DO BRASIL 3)
70.00%
Star Nucleus Co., Ltd.
70.00%
Spacecode LLC
100%
IPSTAR International Pte. Ltd.
100%
IPSTAR Global Services Ltd.
1) Holding Company
2) Listed Company on the Stock Exchange of Thailand
3) On process of set up and register the Company
Remark – Data Line Thai Co., Ltd. ,which is a subsidiary of Advanced Info Service PLC, registered of its cessation with the MOC on 29 November 2007, currently on process of liquidation.
– Com Chat Co., Ltd., Idea Maker Co., Ltd. and Decode Co., Ltd., which are subsidiaries of Watta Classifieds Co., Ltd., registered of its cessation with the MOC on 30 November 2007, currently on process of liquidation.
Part 2 page 17
Form 56-1 Year 2007
Advanced Info Service Plc
Structures of Group of Advanced Info Service Plc.
Advanced Info Service Plc.
Service provider of Digital GSM network in the 900 MHz. frequency
4,997.46 million Baht Registered Capital and 2,958.59 million Baht Paid-up Capital
Mobile from Advance
Co., Ltd.
Advanced Datanetwork
Communications Co., Ltd.
Datanetwork Solutions
Co., Ltd.
51.00%
99.99%
Service provider of voice/
data communications via
telephone line and
broadband in Bangkok and
metropolitan areas
Currently not in operation
240 million Baht paid-up capital 957.52 million Baht paid-up capital
Advanced MPay
Co., Ltd.
99.99%*
Digital Phone Co., Ltd.
98.55%
49.00%
Service provider of voice/
data communications via
telephone line in provincial
areas
1 million Baht paid-up capital
Advanced Magic Card
Co., Ltd.
99.99%
Data Line Thai
Co., Ltd.
Advanced Contact
Center Co., Ltd.
65.00%*
99.99%
Service provider of digital
mobile phone network in 1800
MHz frequency
Service provider of call center
service
Internet service provider
14,621.86 million Baht
paid-up capital
272 million Baht paid-up capital
15 million Baht paid-up capital
Advanced Wireless
Network Co., Ltd.
99.93%
Service provider of payment
business via mobile phone
Distributor of cash card business
Currently not in operation
300 million Baht paid-up capital
250 million Baht paid-up capital
1 million Baht paid-up capital
Super Broadband
Network Co., Ltd.
99.93%
AIN GlobalComm
Co., Ltd.
99.99%
99.99%
Service provider of internet (ISP), Service provider of international Importer and distributor of
internet gateway and broadband, telephone service / gateway
handset and accessories
voice over IP, and IP television
1 million Baht paid-up capital
200 million Baht registered
capital and 100 million Baht
paid-up capital
Remark – Data Line Thai Co., Ltd. ,which is a subsidiary of Advanced Info Service Plc., registered of its cessation with the MOC on 29 November 2007, currently on process of liquidation.
– On 23 January 2008, Advanced Info Service Plc. acquired 30% stake in Advanced Mpay Co., Ltd. from NTT DoCoMo Inc. After acquisition, AIS shareholding percentage in AMP increased from 69.99% to 99.99%.
Part 2 page 18
Wireless Device Supply
Co., Ltd.
50 million Baht paid-up capital
Form 56-1 Year 2007
2.3
Advanced Info Service Plc
Revenue structure from providing service & sales income in AIS group to the third party within 3 years.
Service/Product
Operation By
% Holding
of shares as
at 31 Dec. 07
2005
Income
2006
% Size
Income
2007
% Size
Income
% Size
Mobile phone service structure
- Mobile phone services & rental
- Mobile phone sales
Advanced Info Services PCL.
84.42
75,223.00
82.27
91,991.78
84.82
Digital Phone Co., Ltd.
98.55
1,785.28
1.93
98.36
0.11
912.12
0.84
Wireless Device Supply Co., Ltd.
99.99
-
-
-
-
1.59
-
AIN Globalcomm Co., Ltd.
99.99
-
-
-
-
984.31
0.91
Digital Phone Co., Ltd.
99.99
12,067.88
13.04
15,362.54
16.80
9,554.41
8.81
Wireless Device Supply Co., Ltd.
99.99
-
-
-
-
4,164.92
3.84
91,954.38
99.39
90,683.90
99.18
107,609.13
99.22
Sub-total
Data network and broadband
service structure
78,101.22
Advanced Data Network Communication
Co., Ltd.
51.00
539.61
0.58
728.81
0.80
838.75
0.77
Data Network Solutions Co., Ltd.
49.00
16.18
0.02
7.36
0.01
1.58
-
Data Linethai Co., Ltd.
65.00
1.76
-
1.46
-
-
-
557.55
0.60
737.63
0.81
840.33
0.77
4.72
0.01
6.63
0.01
4.59
0.01
4.72
0.01
6.63
0.01
4.59
0.01
92,516.65
100.00
91,428.16
100.00
108,454.05
100.00
Sub-total
Call center Service structure
Advanced Contact Center Co., Ltd.
99.99
Sub-total
Grand Total
Remark : 1) The Company has invested and held 99.99 % shares of Wireless Device Supply Co., Ltd in June 2007.
2) AIN Globalcomm Co., Ltd. has been started its operation since December 2006 and also changed its name from AIS International Network Co., Ltd. in March 2007.
3) Data Linethai Co., Ltd. is in the liquidation process.
Part 2 page 19
Form 56-1 Year 2007
2.4
Advanced Info Service Plc
Business direction (3-5 years plan)
AIS has adopted a concept to be a Total Telecom Service provider, expanding from previously providing mainly
pure mobile telephone services. Our services have expanded to include: international gateway, international
internet gateway, data services via a fixed line and broadband for consumers. These are the businesses that AIS
has been awarded licenses for from the National Telecommunication Commission (NTC) and will be the key
focus areas for AIS in the next few years.
AIN GlobalComm Co., Ltd. (AIN) gradually introduced international gateway services to AIS subscribers in
2007. The full impact will be evident in 2008. The Super Broadband Network Co., Ltd. (SBN) will integrate its
data-focused fixed line network and the internet international gateway to offer data transmission services to
enterprise customers. The majority of SBN implementation will occur during 2008-9.
In the next 3-5 years, AIS will tap into the growing high-speed data communications market not only for mobile
but also for laptops and personal computers. In the short term, voice communications will be maturing rapidly,
especially in urban areas. On the other hand, data communications by consumers are in the early stages. Mobile
data usage makes up 11% of service revenues while broadband connections, offered by fixed line ADSL
services, are in only about 1 million out of 16 million households. AIS plans to exploit wireless technologies to
capture the data business opportunities. Depending on the maturity of technologies and regulatory limits, 3G
and WiMAX are likely to be adopted as the main technologies.
As most countries around the world, including South East Asian countries, have launched 3G service or issued
3G licenses, AIS expects 3G licenses to be awarded in Thailand in the near future. To AIS, moving to 3G will:
a) stimulate further data revenue growth, b) capture opportunities in residential broadband and c) to help support
the business continuity for the next 20 years.
AIS Broadband services
Wire
Wireless
Mobile
3G
Stationary
Datafocused
fixed line
WiMAX
3G will serve mobile users as well as stationary users (broadband in homes).
Currently, AIS is able to offer data speeds of more than100kbps (average user speed) because it introduced
nation-wide EDGE services (Enhanced Data Rate for GSM Evolution) in early 2007. Customer experience has
improved substantially since data speed increased three times from the level provided by the GPRS (General
Packet Radio Service).
Part 2 page 20
Form 56-1 Year 2007
Advanced Info Service Plc
Better experiences have led to high growth in data usage. AIS expects higher speeds from 3G service (around
200kbps) to sustain high data revenue growth in the longer term. Furthermore, AIS is likely to offer a high
speed service (around 1Mbps) utilizing HSPA (High Speed Packet Access) technology in major cities. At this
level of speed, the HSPA service will be competitive with other fixed broadband services (such as ADSL)
offered to laptops and PCs in homes. The advantage of HSPA is that its coverage is significantly larger than the
fixed line service areas.
The 3G license will ensure business continuity for AIS. Currently, AIS’ contract with TOT to offer mobile
service will end in 2015. The length of the 3G license is likely to be 20 years as are the other three licenses
currently held by AIS.
WiMAX (Worldwide interoperability for Microwave Access) will allow for high speed data connections under
its wide coverage cell sites. WiMAX can be used to offer service directly to stationary consumers using wireless
connections or act as a transmission to link mobile cell sites with the mobile network. AIS can potentially build
the WiMAX network based on its wide-spread transmission network and mobile cell sites. In the consumer
market, WiMAX will allow AIS to wirelessly access homes to provide broadband service without investing in
building fixed connections to homes. Fixed connections to homes might not be allowed by regulators and would
be more expensive than the wireless options. Moreover, WiMAX might be exploited as a wireless transmission
among network facilities to allow faster and more flexible network installation. However, the technology has
not been proven in a business environment. AIS will continue to monitor the progress and evaluate options to
utilize this technology against other options.
Part 2 page 21