Thailand's AIS acquires broadband internet provider 3BB

yong · Post by **yong** » Tue Jul 05, 2022 11:00 am

https://asia.nikkei.com/Business/Teleco ... 4&si=44594

Thailand's AIS acquires broadband internet provider 3BB
Telcom spends $908m to grab bigger market share ahead of rivals' megamerger

AIS will buy a 99.87% stake in 3BB, a leading broadband internet provider. (Source photos by Yumi Kotani and screenshot from Triple T's website)
APORNRATH PHOONPHONGPHIPHAT, Nikkei staff writerJuly 4, 2022 15:59 JST

BANGKOK -- Thailand's biggest mobile phone operator Advanced Info Service (AIS) will spend a total of 32.4 billion baht ($908 million) to acquire shares of an internet service operator and infrastructure provider to expand its customer base ahead of a huge merger planned by rivals True Corp. and Total Access Communication (DTAC).

AIS will buy a 99.87% stake in internet service provider 3BB for 19.5 billion baht.

The company will also spend 12.9 billion baht to acquire 19% of Jasmine Broadband Internet Infrastructure Fund in a bid to strengthen its fiber-optic internet services.

"This [latest] acquisition will enhance consumer access to a broader and better quality of service by improving broadband inclusion in new areas targeting the [northern parts of the country] and non-city areas," said Tee Seeumpornroj, AIS chief finance officer, in a statement on Monday.

He added that the acquisition was expected to be completed and approved by the Office of The National Broadcasting and Telecommunications Commission (NBTC) by the first quarter of 2023.

Currently, AIS has 1.9 million customers and the acquisition will increase this to 4.3 million, nearing its rival True, which has 4.7 million.

The acquisition was part of AIS's strategy to expand its customer base while focusing on 5G infrastructure buildout, a crucial part of a digital overhaul called Thailand 4.0 for Southeast Asia's second-largest economy. Wireless carriers are racing to capitalize on the country's 5G ambitions.

True and DTAC, the country's second- and third-largest internet providers by subscribers, respectively, say they are merging to secure capital and resources for the transition to 5G.

In April, shareholders of True and DTAC approved the merger, with the companies expecting the process to be completed in the third quarter of the year. Still, the outlook for the deal remains uncertain after a supervisory authority urged the telecom regulator NBTC to stop it out of interest to consumers.

While their merger awaits regulatory approval, AIS CEO Somchai Lertsutiwong vowed his company will continue to invest more, not only in internet broadband but also in telecom networks -- particularly 5G -- to maintain its dominant position in the country.

AIS says its 5G network now covers 75% of Thailand and plans to increase coverage to 85% by the end of the year.

Founded in 1986, AIS started as a computer rental business. In October 1990, it launched analog 900 MHz mobile phone services with a 20-year monopoly concession from the Telephone Organization of Thailand.

AIS posted a net profit of 6.3 billion baht in the first quarter of the year, down 4.5% from 6.6 billion baht in the same period of last year.

techietraveller84 · Post by **techietraveller84** » Tue Jul 05, 2022 12:03 pm

Thailand has been a leader in bandwidth in recent years and the best way to keep that lead is buy up the competition.