Advanced Info Service (AIS) expects its revenue from non-mobile and non-fixed broadband business to account for at least 20% of total revenue in three years, up from 10% at present.
The target calls for driving sustainable growth through new S-curve business areas, including digital finance, entertainment and retail services.
AIS is the biggest mobile operator in terms of revenue market share, and its mobile and fixed broadband services contribute almost 90% of its total revenue.
The company plans to utilise artificial intelligence (AI) across the entire organisation to enhance its capabilities and operations as it becomes a “cognitive tech” company, said chief executive Somchai Lertsutiwong.
AIS celebrated its 35th anniversary yesterday, unveiling a bold new chapter as it embraces AI for economic growth and a sustainable society.
“Expanding business from now on will be much more complicated and difficult,” said Mr Somchai.
While telecom industry revenue is projected to grow by 4-5% this year, he said the industry’s operational costs are expected to grow by 10%.
The telecom business’s revenue normally grows by 2% above the country’s annual GDP figure, according to AIS. Thai GDP is expected to expand by 2-3% this year.
However, telecom operators’ total expenses and operating costs have pressured their annual earnings before interest, taxes, depreciation and amortisation.
For the overall fixed broadband business market, Mr Somchai said pricing and promotional packages would no longer be enough to sustain the business in the long term, but the operators have to provide value-added services through their service bundlings with smart devices and entertainment offers that serve the demands of consumers’ daily lives.
They also have to boost 5G service adoption to lift up revenue.
“Utilising 5G services in the mass market is a critical move for the country, and the market should have many more applications such as a super app for people’s adoption,” Mr Somchai said.
Mr Somchai said AIS has played a pivotal role in laying the foundations of Thailand’s digital infrastructure, becoming a key pillar in driving the nation’s telecom industry to global standards.
He said AIS continues its journey into a new chapter under the concept of AI for a sustainable nation, aiming to connect every sector and drive the Thai economy forward with strength and sustainability.
“AIS is now stepping into a new era with three core business pillars, including retail technology, to elevate the complete customer experience,” said Mr Somchai.
The other two pillars are an entertainment platform represented by content streaming platform AIS PLAY, and an upcoming virtual banking service that has been developed with the company’s partners, he said.