The New Growth Engine Saran Phaloprakarn Senior Vice President - - PowerPoint PPT Presentation

The New Growth Engine

Saran Phaloprakarn

Senior Vice President Fixed Broadband Business Management

Fixed broadband Industry

6.77 M Active Subs

Fixed Broadband 2016

Among 21.3M households

32% of FBB Internet penetration in 2016

• No. Sub & FBB Internet penetration in Thailand

Source: NBTC 2012 – 2015 Actual, Pyramid Research 2016-2021 forecast 4.46 5.07 5.69 6.23 6.77 7.69 8.53 9.25 9.90 10.47 22% 25% 28% 30% 32% 35% 39% 41% 44% 46% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% 2 4 6 8 10 2012 2013 2014 2015 2016F 2017F 2018F 2019F 2020F 2021F Sub.(Million) internet penatration

Broadband Technology in Thailand

Growth of fibre will be accelerated by the migration of customers from DOCSIS and ADSL technology

Source: Pyramid Research 2016

Market demand

Full HD / 1 Client UHD / 1 Client

6Mbps 40Mbps

The Market demand gears toward new digital content and services which require higher speed

AIS Fibre Network Coverage

To Achieve Network Coverage 6.5 M Homepass by year end Cover 4.28 M homepass in 28 provinces FTTH : 3.8 M homepass FTTB : 0.48 M homepass

Data as of oct 2016

32.5 % network utilization

Expand homepass to cover the demand in 60 provinces

15,500 Villages and 2,300 Building

3Q2016 2017

AIS Fibre Subscribers

2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16

12k

4.4 %

Market Share

195k 115k 74k 44k 26k

105k 14k 18k 30k 41k 80k

Next step Q4

1st launch in Apr-15

12k

Net Add Subs Total Subs

300k

Q4-15 Q1-16 Q2-16 Q3-16

Extremely satisfied Very satisfied Neutral Not very satisfied Dissatisfied Top 2 Box

76% 76% 80% 80% 83% 83% 80% 80%

Satisfaction towards Usage Experience

Source: AIS Fibre Satisfaction, Telephone interview (New & Existing users = 300/quarter), ACORN

Overall satisfaction towards usage experience in Q3 maintains previous quarter at 80%

Q4-15 Q1-16 Q2-16 Q3-16

Promoter (9-10) Passive (7-8) Detractor (1-6) NPS

+14% +25% +24% +26%

Net Promoter Score

Main reasons to recommend

• Fast Speed
• Connection stability
• Signal quality

Source: AIS Fibre Satisfaction, Telephone interview (New & Existing users = 600/quarter), ACORN

In Q3, 2016, overall likelihood for AIS Fibre users to recommend AIS Fibre to others maintains at NPS +26%.

AIS Fibre Goal & Strategies

One of the major player in FBB within 5 years 3Q2016 2021

3%

Channel Distribution strategy

Utilize Mobile Channels Strengthen Dealers

6 M

AIS Postpaid Subscribers

66

Authorized Dealers Cross sell to Currently

Product & Pricing strategy

Feel the exclusivity of channels and superiorservice with superfast internet speed via 100% optical fibre. Share of low rates and smoothly evenwith many user Enjoy superfast internet speed via 100% optical fibre. Seamless

• Connectivity. No Hiccups

PowerHome PowerPro

Drive Mass Migration Increase ARPU with high speed package

Match entry price of ADSL Segment base offering

TV Video Content

1) Basic ic & Popul pular r Conte ntent nts 100+ Free TV Channels VOD: Movies, Series, Cartoon 2) Exclusiv usive & Trendy ndy Conte ntent nts 3) OTT T Servic ices

Take me out Thailand & Kik Duu

• Extended version

Live Concert & Thai Series _ GMM Bravo

Coverage & Rollout Strategy

High capacity OLT

In central office

Low capacity OLT

in existing cell sites

Conventional Fixed Broadband Operator AIS Fibre, taking advantage from existing cell sites

New cables, May not be feasible to offer FTTx in small towns

Existing cables, Existing cell sites

Coverage in small town can be added on demand after pre-sale activity