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True Online aims to top 10% growth: B2bn spending raises broadband outlook
Dec 18, 2009 (Bangkok Post - McClatchy-Tribune Information Services via COMTEX) --
True Online, the internet arm of True Corp, expects to beat its broadband revenue growth target of 10 percent this year.
The roll-out of new promotions, combined with a 2-billion-baht network improvement programme and a rebounding economy, have buoyed the firm's outlook, said Non Ingkutanon, deputy director for wireline broadband service.
True Online is expected to contribute more than half of the group's total earnings this year, helped by a sharp increase in the number of subscribers using two or more products under its convergence strategy.
True Online plans to spend between 3 billion and 3.5 billion baht on expanding its broadband coverage and capacity over the next two years. The spending should sustain the company's double-digit growth in 2010.
Mr Non said the company projected to earn 6 billion baht in revenue from broadband this year, including 200 million from WiFi, up from 5 billion last year.
True Online, also encompassing business data, online game and convergence services, would earn a total of 25 billion baht in revenue this year, he said.
Mr Non said broadband subscribers totalled 700,000 as of September 2009 -- of whom 35,000 were corporate users -- giving the company a 38 percent market share. WiFi customers totalled 200,000 at the end of October.
"Our broadband revenue grew by 11.7 percent as of September, delivering results beyond expectations in a shorter timeframe than planned," said Mr Non.
"We had only 14,000 new broadband customers in the first six months, compared with 18,000 in the third quarter alone."
Seventy five percent of its broadband customers signed up for 3-megabit tariff package for 599 baht a month.
WiFi traffic usage of customers using iPhones and BlackBerry phones was double the average monthly usage.
Mr Non said the company planned to expand services more into provincial markets next year after penetrating six provinces upcountry: Chiang Mai, Hat Yai, Pattaya, Khon Kaen, Phuket and Nakhon Ratchasima.
"We expect to maintain our broadband revenue growth at 10 percent next year, with WiFi remaining its strong growth of 100 percent," he said, adding that the number of WiFi users and traffic would explode once 3G mobile broadband materialises.
True is waiving the fee until Jan 21, 2010, for the first 1,000 broadband subscribers to sign up for its 4-megabit WiFi service through http://www.truewifi.net.
The company currently has 17,000 WiFi hotspots nationwide.
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