Sector Report - asiawealth.co.th · Council (NRC) endorsed a report by an NRC committee on consumer...
Transcript of Sector Report - asiawealth.co.th · Council (NRC) endorsed a report by an NRC committee on consumer...
8 January 2015
Sector Report
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Telco Sector
Voice revenue to be charged per-second, negative for operators
NBTC ordered every telco to apply per-second basis starting 1 Mar 15
The National Broadcasting and Telecommunications Commission (NBTC) invited
ADVANC, DTAC, and TRUE to an urgent meeting on 7 Jan 15 after the National Reform
Council (NRC) endorsed a report by an NRC committee on consumer protection reform,
which proposed mobile phone fees be charged on a per-second basis instead of per-
minute basis. This change will go into effect 1 Mar 15 to let telcos have time to adjust their
products. In addition, the NBTC ordered telcos to provide web services for their
subscribers to check how many minutes they have used. In other words, there will be per-
second mobile service packages launched by each operator and consumers can either
switch from per-minute packages to the new per-second packages or can keep using their
old packages. For other complicated contracts, we will get a clearer picture at the
beginning of March. This does not apply to international roaming due to rules and
regulations which vary country-by-country.
There will be some negative effects, but less than what was mentioned in the news
We think this issue would negatively affect every operator, but the impact should be limited
due to:
1. Proportion of voice revenue is decreasing as customers are switching from voice
to non-voice services. Voice revenue per user has decreased by double-digits
YoY. The key driver is data service, so there should be significant effect only in
the first 1-2 years.
2. Several mobile packages, especially for post-paid subscribers, have a fixed
number of minutes that can be used. ADVANC has the lowest percentage of post-
paid subscribers, so it is at a disadvantage. In rural areas, subscribers may face
obstacles or not know how to switch to the per-second package, so this hurdle
should lessen the negative effects.
► NBTC and mobile operators will apply per-second voice service charges
from 1 Mar 15, instead of per-minute.
► This will be negative to all mobile operators, but loss in revenues should be
less than the Bt40-50bn mentioned in the press. For example, telcos are
able to adjust prices up to compensate voice revenue loss from applying
per-second basis.
Thailand Research Department
Mr. Narudon Rusme, CFA
No.29737 Tel: 02 680 5056
8 January 2015
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3. If voice revenue decreases too much, we think mobile operators will increase airtime
charges either directly or indirectly. Therefore, the loss should be less than what is
officially expected (Bt40-50bn).
After the NBTC’s meeting, we asked NBTC commissioner Pravit Leesatapornwongsa about
the total loss for operators mentioned in several newspapers and found that the Bt40-50bn
is the ceiling for the loss calculated on maximum per-minute charge or Bt1.5/minute which is
much more than real rates (no more than Bt1/minute). We think the loss should be less than
what is mentioned in the news. We will review our valuations for related shares again (current
2015 target prices for ADVANC and DTAC are Bt253 and Bt115, respectively).
Other issues: 1800 and 900 MHz spectra auction is still at risk since CAT and TOT are
able to take this issue to the administrative court
Although the auction seems to be a go, the commissioner viewed some risks, as CAT
Telecom and TOT may file a complaint with the Administrative Court to halt the spectrum
auction. He said there should be an authorized party to allow the auction and this should be
the National Council for Peace and Order (NCPO).
We think that the NCPO is determined to push the spectrum allocation according to its digital
economy policy and should prefer an auction of spectra that are expired and going to expire
and let CAT and TOT join the auction. Therefore, we expect the auction to happen in July as
planned. There is a risk that the 900 MHz auction will be delayed, but this should not be so
long since officials have understood that a delay could cause some drawback to the economy
as seen in the past.
Update: There is news this morning (8 Jan) mentioned that the ICT minister also supports the
spectra auction and the NBTC will prepare the proposal to be submitted to the Digital Economy
Committee. (from Bangkokbiznews)
8 January 2015
CG Report
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ADVANC BTS GRAMMY MCOT PTT SC SSI TMBAOT CIMBT HANA MINT PTTEP SCB SSSC TNITYASIMAR CK HEMRAJ NKI PTTGC SCC SVI TOPBAFS CPF ICC NOBLE QH SCSMG SYMC TRCBANPU CPN INTUCH PAP RATCH SE-ED TCAP TRUEBAY CSL IRPC PG ROBINS SIM THAI TTWBBL DRT IVL PHOL RS SIS THCOM TVOBCP DTAC KBANK PR S&J SITHAI THRE UVBECL EASTW KKP PRANDA SAMART SNC TIP VGIBKI EGCO KTB PS SAMTEL SPALI TISCO WACOALBROOK ERW LPN PSL SAT SPI TKT
2S ASP CHOW GBX JUBILE LRH NMG PPP SINGER TCP TOG UACACAP AYUD CM GC KBS LST NSI PREB SIRI TF TPC UMIAF BEC CNT GFPT KCE MACO NWR PRG SKR TFD TPCORP UMSAHC BFIT CPALL GL KGI MAJOR OCC PT SMT TFI TPIPL UPAIT BH CSC GLOW KKC MAKRO OFM PYLON SNP THANA TRT UPOICAKP BIGC DCC GOLD KSL MBK OGC QTC SPCG THANI TRU UTAMANAH BJC DELTA GSTEL KWC MBKET OISHI RASA SPPT THIP TSC VIBHAAMARIN BLA DTC GUNKUL L&E MFC PB SABINA SSF TICON TSTE VIHAMATA BMCL ECL HMPRO LANNA MFEC PDI SAMCO STANLY TIPCO TSTH VNGAP BWG EE HTC LH MODERN PE SCCC STEC TK TTA VNTAPCO CCET EIC IFEC LHBANK MTI PF SCG SUC TLUXE TTCL YUASAAPCS CENTEL ESSO INET LHK NBC PJW SEAFCO SUSCO TMILL TUF ZMICOASIA CFRESH FE ITD LIVE NCH PM SFP SYNTEC TMT TWFPASK CGS FORTH JAS LOXLEY NINE PPM SIAM TASCO TNL TYM
A ASIA CITY EASON HTECH KASET MJD PL SF SVOA TMI UOBKHAAV BAT-3K CMR EMC HYDRO KC MK POST SGP SWC TNDT UPFAEC BCH CNS EPCO IFS KCAR MOONG PRECHA SIMAT SYNEX TNPC UWCAEONTS BEAUTY CPL F&D IHL KDH MPIC PRIN SLC TBSP TOPP VAROAFC BGT CRANE FNS ILING KTC MSC Q-CON SMIT TCCC TPAC VTEAGE BLAND CSP FOCUS INOX KWH NC QLT SMK TEAM TPP WAVEAH BOL CSR FPI IRC LALIN NIPPON RCI SOLAR TGCI TR WGAI BROCK CTW FSS IRCP LEE NNCL RCL SPC TIC TTI WINAJ BSBM DEMCO GENCO IT MATCH NTV ROJNA SPG TIES TVD WORKAKR CHARAN DNA GFM JMART MATI OSK RPC SRICHA TIW TVIALUCON CHUO DRACO GJS JMT MBAX PAE SCBLIF SSC TKS TWZANAN CI EA GLOBAL JTS MDX PATO SCP STA TMC UBISARIP CIG EARTH HFT JUTHA PRINC PICO SENA SUPER TMD UEC
Score Range Number of Logo Description
90 - 100 Excellent
80 - 89 Very Good
70 - 79 Good
60 - 69 Satisfactory
50 - 59 Pass
Below 50 No logo given N/A
8 January 2015
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This report has been prepared by Asia Wealth Securities Company Limited (“AWS”). The information herein has been obtained from sources believed to be reliable and accurate, but AWS makes no representation as to the accuracy and completeness of such information. AWS does not accept any liability for any loss or damage of any kind arising out of the use of such information or opinions in this report. Before making your own independent decision to invest or enter into transaction, investors should study this report carefully and should review information relating. All rights are reserved. This report may not be reproduced, distributed or published by any person in any manner for any purpose without permission of AWS. Investment in securities has risks. Investors are advised to consider carefully before making decisions.
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