Price war eats into 2Q mobile revenues

31 Aug 2005

A cut-throat price war has meant that the Thai mobile sector witnessed a 5% drop in revenues in the three months to the end of June, the first sales drop between the first and second quarter ever reported, according to Thai press reports and NewsEdge. Total mobile revenues in the period amounted to THB36.8 billion (USD876 million), down from THB38.6 billion in the first quarter, as the knock on effects of price cutting dating back to February began to take effect. According to reports, market leader DTAC had the best quarter, improving its share of subscribers and being least affected by the tariff reductions due to its relatively low proportion of users signed up to applicable tariffs. DTAC accounted for 41% of all new users added in the quarter, whilst AIS took 39% and TA Orange 19%.