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Tag: ais

  • Thailand’s TOT and CAT won’t be merged

    Thailand’s ICT minister has insisted that there will not be a merger between the two state-owned operators TOT and CAT even as the companies are under pressure to consolidate their operations.

    Minister Uttama Savanaya has ruled out a merger on the grounds that the organizational structures of the two companies are incompatible.

    But he said the two companies will partly consolidate some of their similar core businesses to help avoid duplication of investment spending.

    Thailand’s State Enterprise Policy Commission has ordered both TOT and CAT to restructure to survive, terminating their unprofitable businesses and focusing on their core operations.

    Both are under pressure now that the nation has moved from a concession model – whereby private operators paid a share of their revenue to the state operators in exchange for use of spectrum assets – to the conventional licensing model.

    The commission has approved in-principal proposals involving consolidating the operators’ transmission, fiber, subsea cable network and internet data center operations.

    But Uttama said that other core areas of the two operators, including fixed broadband, mobility and network rental services, will remain separate.

    He noted that TOT and CAT will need to quickly adjust their organizational and business structures to ensure their survival. TOT has revealed it expects to face an operating loss of 1 billion baht in 2016.

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  • AIS to offer family safety services

    AIS to offer family safety services

    Thai operetor AIS has awarded a contract to Gemalto covering the company’s LinqUs Mobile Protection solution.

    Gemalto will provide integrated sophisticated safety-checking features for digitally connected consumers, allowing mobile users to seek real-time location information and online protection for their loved ones.

    AIS expects to use the capability to enhance customer engagement by offering services aimed at keeping subscribers safe and connected to their families. Gemalto will also provide support services to AIS.

    Gemalto partners with iMobileMagic, a provider of cloud based family location and protection products, to offer a service which will allow users to receive real-time notifications when their kids, elderly or other relatives arrive, leave, or stray away from designated areas.

    Families can expect to be able to instantly locate their loved ones or send panic alerts during emergencies. Parents will have the additional ability to put restrictions on their children’s device usage.

    This cloud-connected mobile application, which runs on a wide range of devices and wearables, can help AIS customers to stay close to their families and even pets, in a simple and cost-effective way.

    “Safety and security are the key issues on everyone’s mind these days, and Gemalto’s LinqUs Mobile Protection solution allows us to meet the rapidly changing needs of our society, with lower cost of ownership,” said Titipong Khiewpaisal, SVP for consumer marketing and sales at AIS.

    “It is easy to deploy, scalable, and even available on wearables, making it easy for our customers to stay up to date with the status of their family members, anytime and anywhere,” he said.

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  • AIS introduces self-service at contact centers

    AIS introduces self-service at contact centers

    Thailand’s AIS has upgraded its customer contact center system in a bid to provide a consistent, enhanced and personalized customer experience for its growing subscriber base.

    The new system now routes up to 70% of all customer calls to a self-service system.

    The self-service capacity allows subscribers to gain access to services such as activating their SIM card, subscribing to roaming services or selecting rewards, without dealing with long queues.

    Leveraging Avaya’s Self-Service solution, AIS’ Advanced Contact Centers (ACC) have streamlined customer care and enhanced personalized live agent support at its contact centers located in Bangkok and Korat.

    The centers currently employ 3,300 customer service employees, serving 40 million subscribers nationwide.

    Smartphone users in Thailand are expected to reach 20 million in 2016 and this is expected to soar further with the introduction of 4G commercial services this year. Demand for more sophisticated, seamless and highly reliable broadband connectivity from business is also expected to escalate as Thailand’s digital economy accelerates.

    ACC saw the digital transformation of its contact center as a critical enabler in the new economy. The new self service system will ensure a consistent customer experience for AIS’s 11 million calls it receives through its contact centers every month.

    In the past, each customer call routed to a live agent can cost between 50 to 100 baht ($1.42 to $2.84), depending on the competency level of the agent. In contrast, the new system means that each call costs only 1 baht for ACC.

    The new system also provides capabilities for ACC to identify and categorize AIS’s customer calls and the services they require before matching them with the right agents trained to help specific service requests or customer types.

  • Thailand’s big three cellcos oppose tariff caps

    Thailand’s big three cellcos oppose tariff caps

    Thailand’s three largest mobile operators – AIS, Dtac and True Move – have united to oppose current regulations capping tariffs for 3G and 4G services.

    The operators brought up their opposition a group discussion with regulator NBTC on Monday.

    Revising the regulations would encourage greater competition and stimulate the further development of mobile networks and services, the operators claimed.

    They have argued that existing caps have diminished the development of service packages, distorted price mechanisms and impeded the operation of an open and competitive market.

    Currently the NBTC caps the maximum 3G tariff at 0.82 baht ($0.02) per minute for voice service, 1.33 baht per SMS, 3.32 baht for MMS and 0.28 baht for data services. The equivalent 4G limits are 0.69 baht, 1.15 baht, 3.11 baht and 0.26 baht respectively.

    A representative for Dtac stated that other mobile markets with the same level of development as Thailand do not impose tariff caps, and noted that tariffs in Thailand are among the lowest in the ASEAN region.

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  • Thailand’s AIS launches VoWiFi

    Thailand’s AIS launches VoWiFi

    Thailand’s AIS has launched Voice over Wi-Fi (VoWiFi) services, and Taiwan’s APT has announced plans to do the same.

    AIS, Thailand’s largest mobile operator, is initially offering VoWiFi for selected iPhone models, including the iPhone 5s, 5c, 6, 6 Plus, 6s, 6s Plus and iPhone SE.

    The company will offer VoWiFi as a complementary add-on for AIS’s 4G services, offering calls at standard rates as well as the ability to send and receive SMS.

    AIS has announced plans to expand its WiFi hotspot network from 120,000 to 160,000 this year and to 200,000 by 2017. The operator is aiming to have more than 10 million 4G subscribers by the end of 2016.

    Taiwan’s APT has also announced plans to launch VoWiFi services, without announcing a timeframe.

    Comments from APT suggest that the operator will initially support selected iPhone models and the Android-based InFocus M372 with the VoWiFi service.

    Currently the operator’s 4G network covers around 94% of Taiwan, including 98% of metropolitan areas. The company passed the 4 million subscriber milestone at the end of May.

    Last week, Singtel announced that it is planning to launch VoWiFi services in August  following successful HetNet trials.

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  • Thailand will tighten call drop regulations

    Thailand will tighten call drop regulations

    Thai regulator NBTC will introduce stricter standards governing the quality of mobile signals in an effort to address a growing number of complaints related to dropped calls.

    The NBTC will amend current regulations, which require operators not to exceed a dropped call rate of 15% across all calls, to instead require operators to maintain this rate in each of Thailand’s service areas.

    The new regulations, which are expected to come into effect in September, have been implemented in response to the fact that in more busy service areas with congested traffic dropped call rates are much higher than the average.

    In addition to the new regulation, the NBTC has given five mobile operators – AIS, Dtac, True Move, CAT Telecom and TOT – 15 days to resolve their dropped call problems.

    According to the report as of May there were 994 complaints involving dropped calls from AIS, 497 from Dtac, 386 from True Move, 32 from CAT and seven from TOT. Complaints are picking up now operators are focusing on customer acquisition strategies to maximize their 4G investments.

    Indian regulator Trai is also focusing heavily on the issue of call drops.

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  • Thailand’s AIS launches prepaid broadband

    Thailand’s AIS launches prepaid broadband

    Thailand’s AIS has launched the nation’s first prepaid fixed broadband service, introducing a 15Mbps speed plan for a 500 baht ($14) monthly top-up fee.

    AIS has set a target of becoming Thailand’s second largest broadband player by 2019, citing comments from a senior executive at the company.

    The operator launched commercial fixed broadband services in April last year and had 450,000 subscribers as of December. AIS plans to increase this to 1 million by 2018 and 2 million by 2019.

    In order to achieve its growth ambitions AIS has allocated 7 billion baht to extend its fiber network to cover 24 provinces this year, and a further 10 billion baht to expand this to 40 provinces in 2017.

    Meanwhile rival Jasmine International, whose subsidiary Triple T Broadband operates landline broadband services under the 3BB brand – has retaliated by slashing the price of its 50Mbps plans to 700 baht per month, from 2,500 baht.

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  • AIS abandons plan to rent TrueMove’s 2G network

    AIS abandons plan to rent TrueMove’s 2G network

    Thailand’s AIS and TrueMove have abandoned plans to enter a mobile network rental agreement after being unable to accept mutually agreed upon terms.

    AIS no longer intends to rent TrueMove’s 900-MHz network to allow it to continue serving its 900-MHz 2G customers in the wake of the expiration of its 900-MHz license, telecoms regulator NBTC’s secretary-general told.

    The two operators had been negotiating a network rental agreement since mid-April, concentrating on network roaming on the 900-MHz spectrum and customer migration between AIS’s and TrueMove’s networks.

    The government had been encouraging AIS to rent True Move’s existing network to allow it to retain some of its existing 2G customers in order to end a dispute over an extension of AIS’s use of its 900-MHz network.

    AIS is reportedly also facing government pressure to hand over 8 million 2G customers to TrueMove to free up the 900-MHz spectrum due to be re-auctioned on May 27.

    But AIS intends to participate in the auction, and may therefore be able to secure the spectrum needed to ensure service continuity.

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  • Thailand’s AIS faces $71k fine per day

    Thailand’s AIS faces $71k fine per day

    Thailand’s National Broadcasting and Telecommunications Commission has written to AIS warning of $71,114 (2.5 million Baht) a day fines unless they complete the handover of 300,000 subscribers to TrueMove under the mobile number portability system by May 10th.

    Thai language daily Thairath reported that AIS has refused to release the subscribers due to incomplete or erroneous documentation. The story also said that AIS had no problems with Dtac all valid Dtac porting requests had been completed.

    Earlier we reported on how the government was trying to force AIS to sign an MOU with True and allow the NBTC to step in with the final say on MNP with no recourse of appeal.

    AIS did not respond to request for comment by the time of going to press.

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  • Thai government leans on AIS to surrender 8m users to True

    Thai government leans on AIS to surrender 8m users to True

    A newspaper report has accused deputy prime Minister Wissanu Krea-ngam, NBTC Secretary-General Takorn Tantasit and ICT Minister Uttama Savanayana of trying to strongarm AIS into handing over 8 million 2G customers to TrueMove in a meeting last week.

    In a report, Thai-language newspaper Manager said that the three – along with ICT Permanent Secretary Songporn Komolsuradej, AIS CEO Somchai Lertsutiwong and True CEO Supachai Chearavanont – recently held a meeting in which Takorn had drafted an MOU for the participants to sign.

    The MOU would force AIS to sign a new roaming agreement with True and scrap its current 2G roaming agreement with Dtac. Another key point was that it would also give the NBTC oversight and jurisdiction in number portability from AIS to TrueMove. The MOU allegedly stipulated that the NBTC’s judgement in this matter would be final and there would no appeal.

    The report said that Takorn kept trying to coerce the AIS CEO into signing the MOU but Somchai refused, saying he had to consult with his board first and that besides there was no need as of yet as AIS was going to bid for the 900-MHz spectrum and even if that failed, they had the 2G roaming agreement with Dtac.

    Manager quoted the MICT source as saying the NBTC-drafted MOU clearly was illegal not just under NBTC’s own laws, but under Thailand’s WTO obligations.

    Manager quoted another anonymous source in the NBTC saying that the meeting was called under the orders of the “big boss” who wants the matter to be done and dusted as soon as possible. The source also highlighted conflict of interest pointing out that Deputy Prime Minister Wissanu’s son was now working at one of AIS’ competitors.

    Wissanu’s son, Dr Witchaya Krea-ngam, is currently a specialist for government relations at True Corporation.

    The draft MOU has also been leaked online by someone calling themselves @NBTCnews on Twitter.

    Earlier the issue of number portability had descended into a fierce war with True launching an aggressive campaign and paperless MNP request system that Dtac and AIS refused to acknowledge as legally binding. The NBTC ordered Dtac and AIS to accept the paperless porting requests, to which the two telcos stood their ground saying they would obey the law.

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  • TOT allows AIS to trial use of 2.1-GHz spectrum

    TOT allows AIS to trial use of 2.1-GHz spectrum

    Thai state-owned operator TOT has granted former concession holder AIS permission to provide a trial mobile service over the 2100-MHz spectrum band.

    TOT has not yet permitted AIS to commercially use the spectrum but will allow the private operator to conduct technical testing ahead of the signing of a planned partnership deal.

    But regulator NBTC is looking into the decision to allow the trial using 15 MHz of the 2100-MHz band after receiving an informal complaint complaining that this should not be allowed as they have yet to finalize the terms of the partnership.

    The operators are currently negotiating a deal to provide a joint 3G service over TOT’s 2100-MHz spectrum.

    AIS had been using the spectrum as part of its earlier build-operate-transfer concession agreement with the state-owned company.

    AIS subsidiary AWN currently provides wireless broadband over 15MHz of its own 2100-MHz spectrum and 15MHz of 1800-MHz spectrum, both acquired at auction under the new licensing regime. But the operator is keen to acquire access to more spectrum to meet rising data demand.

    In addition, AIS has reportedly reached an agreement with rival Dtac to roam the remaining AIS 900-MHz 2G subscribers to Dtac’s 1800-MHz network upon the switch-off of the 900-MHz service.

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  • Thailand’s AIS facing 2G switch-off

    Thailand’s AIS facing 2G switch-off

    Subscribers to Thai operator AIS’ 900-MHz 2G service could face having their services disconnected by midnight tonight amid an ongoing dispute over spectrum usage.

    AIS still has around 400,000 2G subscribers left on its 900-MHz 2G network, but spectrum AIS had been using for the service has been reallocated at auction to True Move H Universal Communication.

    True’s 900-MHz license is due to take effect from today, leaving the fate of the remaining subscribers hanging in the balance. According to the report, AIS is expected to announce that its 2G subscribers will not face any disruption as a result of the reallocation, even though the rules stipulate that AIS will have to switch off its 900-MHz service after the spectrum changes hands.

    The NBTC recently held meetings with AIS, state-owned TOT and True over ways to prevent disruption to the remaining customers. But the companies were reportedly unable to reach a mutual agreement.

    True had offered to let AIS use its 900-MHz spectrum in exchange for a usage fee, but AIS has insisted on using the 900-MHz spectrum from the other winner of 900-MHz spectrum, Jas Mobile Broadband. The NBTC has rejected this proposal.

    Meanwhile the regulator has ordered that the applications of around 800,000 2G subscribers of AIS and rival Dtac be port their mobile number to True’s network be expedited.

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  • Premium SMS Scam in Thailand by Foreign Content Providers

    Premium SMS Scam in Thailand by Foreign Content Providers

    Scammers create SMS competitions or trivia scams to trick you into paying extremely high call or text rates when replying to an unsolicited text message on your mobile or smart phone. Over the last few months mobile operators in Thailand managed to close some sms gateways from frauduleus foreign content providers like Mexcomm.

    A Malaysian company, with offices in Thailand who’s tricking mobile users offering free gifts and promises to win numerous prizes. All fake. True Move together with AIS and DTAC are doing everything they can and even created mobile scam teams to reveal the companies behind these marketing techniques. Shortcode 4741777 was used by one of them, to trick unwilling clients and let them pay high mobile fees. Mobile operators have shut down the companies shortcode and is on the look for other companies who’r running similar marketing campaigns.

    According to their website, Mexcomm has won several mobile content prizes. You can question this, as most of the events were sponsored direct or indirectly by the company over the last decade.

    How this scam works

    An unsolicited text message may invite you to enter a competition for a great prize—for example, a smart phone or tablet or gift vouchers for a well-known retailer. You will be required to send a text message back. You may also receive an email or encounter a pop-up window online asking you to enter your mobile number in order to claim a prize you’ve supposedly won. Sometimes these come in the guise of a ‘customer survey’ in which you are prompted to provide your mobile number.

    Alternatively the message may invite you to take part in a trivia contest with a great prize on offer if you answer a certain number of questions correctly. The first lot of questions will be very easy – scammers do this intentionally to encourage you to keep playing. However, the last one or two questions that you need to answer to claim your ‘prize’ could be very difficult or impossible to answer correctly and may even require you to guess a random number.

    The scammers make money by charging extremely high rates for the text messages you send, and any further messages they send to you. These charges will not be made clear to you, and could be as high as $4 for each message sent and/or received. You may also be automatically subscribed to ongoing charges. You will not discover these charges until you see your next itemised phone bill.

    Warning signs

    • You receive a text message, which may look like an advertisement, offering you the chance to win a great prize by sending a return text to enter a competition.
    • A text message tells you that you could win a great prize by participating in a trivia competition over SMS. The first message may even contain a very easy question to tempt you.
    • The text message (or advertisement) does not contain all the terms and conditions, or an ‘opt out’ to stop receiving more messages.

    Protect yourself

    • Do not respond to text messages or missed calls that come from numbers you don’t recognise.
    • Look out for SMS and MMS numbers that start with 19 or phone numbers beginning with 190. These are charged at a premium rate, even sometimes for receiving a message, and can be very expensive.
    • Contact your mobile phone service provider to ask about the number—they will know if it comes from a premium rate service. Ask your telephone company to put a bar on premium rate services (190 numbers) to and from your phone.
    • If you did not want to participate and you receive more messages, contact your mobile phone service provider and explain that the charges are being made without your permission.
    • Do not provide your mobile number to websites or in response to unsolicited emails claiming you can win a prize without very carefully checking the terms and conditions. If there are no terms and conditions or they seem to be hidden from plain view, don’t risk it.
    • Read all terms and conditions of any offer very carefully. Claims of ‘free’ or ‘very cheap’ offers often have hidden costs. Before you sign up to a subscription service check that there is an option to ‘unsubscribe’.

    Retail News will hold a close watch and will monitor this more the next few weeks and months.

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  • 4G auctions set to generate B1.3tn

    4G auctions set to generate B1.3tn

    A woman walks past telecom and cable lines along Phahon Yothin road. The 4G auction is expected to spur huge investment in telecom lines. PATTARAPONG CHATPATTARASILL

    The imminent fourth generation (4G) spectrum auctions could stimulate direct and indirect investment valued at 1.3 trillion baht over the next five years.

    The development will also transform Thailand into an internet-empowered economy and add impetus to the country becoming an Asean digital infrastructure hub by 2020, said Takorn Tantasith, secretary-general of the National Broadcasting and Telecommunications Commission (NBTC).

    The private sector, meanwhile, believes that having faster high-speed mobile network technology will promote the country’s e-commerce.

    The NBTC expects to receive at least 73 billion baht from the 4G spectrum auctions of four licences in November. The revenue will pass directly to state coffers, Mr Takorn said at a seminar entitled ‘4G: the turning point of the country’.

    The winning bidders of the 4G auctions must roll out networks worth a combined 160 billion baht in 2016.

    An additional 260 billion baht will come from telecom-related businesses and employment in 2017, plus another 300 billion baht in 2018.

    Based on an internal estimate, Mr Takorn said all direct and indirect investment stemming from the 4G auctions would reach 1.3 trillion bay by 2020, in line with a study by the economics faculty of Chiang Mai University.

    “Thailand can no longer afford to lose this opportunity for the sake of our country and our people,” he said.

    There are 104 million mobile subscribers in Thailand, only 4 million of whom are 2G users.

    Worawoot Aunjai, chief executive of Central Online Plc, said having a 4G infrastructure would directly benefit the local e-commerce and online trading industry. It will also encourage small and medium-sized enterprises to grab a bigger slice of the e-commerce market.

    “Companies without technology will find it nearly impossible to flourish in the current business environment,” he said.

    Mr Worawoot said development of the 4G infrastructure was essential to accommodate the rapidly changing needs and growth of businesses.

    He said Thailand’s retail trade via online transactions accounted for only 1% of total retail trading value, compared with 5.8% of the average global retail market and 12% in China.

    Global online trading is expected to account for some 20% of total retail trade by 2020.

    Mr Worawoot said online trading was expected to reach 8% of the total retail trade in Thailand by 2020.

    “The growth of online trading will be in line with the quality of wireless connection and affordable mobile devices,” he said, adding that 4G service will play a crucial role in driving the local e-commerce industry.

    Mr Worawoot said Central Group’s annual retail sales were expected to reach 260 billion baht this year, half of which will be conducted via mobile devices.

    Ariya Banomyong, managing director of Line Thailand, said the quality of wireless connections and telecom infrastructure could attract foreign investment from global tech companies such as Google, Facebook, Amazon and Apple.

    “This will promote Thailand as a regional digital infrastructure hub,” he added.

    Vichai Bencharongkul, honorary president of the Telecommunications Association of Thailand, said developing an internet-based economy would essentially need a high-speed telecom infrastructure, developing knowledge workers and building organisational confidence with digital practices.

    4G service is expected to ensure wireless service continuity and provide business recovery experience, thanks to the greater speed of wireless data services, said Mr Vichai.

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  • Scope of e-commerce expanding rapidly

    Scope of e-commerce expanding rapidly

    Thailand’s e-commerce sector is expected to see continued strong growth, of 30-35 per cent this year.

    More and more players are getting into the e-commerce game, such as online merchants, payment-service providers, order-fulfilment providers, tech start-ups and telecoms, and foreign interests as well, encouraged by the government’s “digital economy” initiative.

    Thai E-Commerce Association president Pawoot Pongvitayapanu said e-commerce was a very tough and competitive sector.

    “This year there is tough competition for e-commerce in Thailand. Large players will spend a lot of money to gain a share [of the market]. We recommend that small and medium-sized e-commerce businesses should focus on segmented marketing targeted at their [particular market],” he said.

    He said the rapid increase in mobile Internet users had been helping e-commerce to grow actively this year.

    As of the first quarter of this year, True Mobile had 20.7 million users of its fourth- and third-generation wireless broadband services, Total Access Communication had 14.8 million data subscribers, and Advanced Info Service (AIS) had 20.6 million data subscribers.

    According to research by eMarketer, by 2018, Thailand is projected to have nearly 27 million smartphone users, with mobile-phone penetration reaching 71 per cent, giving the Kingdom the 19th-largest smartphone-user population worldwide, ahead of Australia and Vietnam.

    This rapid increase of smartphone penetration and mobile Internet users is the key factor driving rapid growth of online shopping in Thailand.

    This has obliged all stakeholders included retailers, e-commerce businesses, e-marketplaces, e-payment providers, and logistics companies to focus more on this sector. If they do not, they will lose customers to the other online shopping sites or miss business opportunities.

    Pawoot, who is also managing director of Rakuten Tarad.com, said the company would launch a new e-commerce service next quarter as part of its strategy to grow by 40-50 per cent this year. “This year, our growth comes from an increase in merchant numbers, adjusted internal processes, focusing on the mobile channel, and conducting marketing and promotion. We have a marketing budget of more than Bt10 million.”

    Telecom online stores

    Pratthana Leelapanang, executive vice president for marketing at AIS, said sales through AIS Online Store were growing by more than 200 per cent when compared with last year. All products are telecom-related including devices, accessories, SIM cards, and premium packages and content.

    The sales goal of AIS Online Store this year is to sell 600,000 mobile phones, while the marketing goal is to be a “top of mind” store.

    Convenient payment is one of the factors in the online shop’s success. Customers can pay cash on delivery or via credit or debit cards, automated teller machines, Internet banking, or over the counter at more than 400,000 outlets nationwide such as at Tesco Lotus, FamilyMart, mPay Station and Thai Post.

    “Online business in Thailand is rapidly increasing. According to the latest research by Google in June, a lot of people do online shopping via smartphone. Thailand has the highest ratio with 31 per cent of smartphone users doing mobile shopping. Therefore, there are huge opportunities for online business in Thailand,” Pratthana said.

    However, one of the disadvantages faced by online businesses in Thailand right now is price wars. Many players have absorbed losses after offering big discounts to attract customers to their online shops. Meanwhile, logistics costs in Thailand are still high.

    “Online shopping cannot [allow] customers to try and touch products before purchase. Credit-card use is still limited as people are concerned about security,” Pratthana said.

    Tim Verouden, senior vice president and head of digital services at DTAC, said online business was growing. DTAC’s e-commerce is not confined to its dtac.co.th online store, but is a whole ecosystem of digital commerce-related activities and platforms based on its customers’ understanding that it can make personalised and relevant offers.

    “We see our digital-channel footprint from a holistic perspective where all channels can benefit from each other. In terms of portfolio, we used to have the same portfolio of handsets, packages and offers as the other channels, but especially due to advanced customer understanding we can now offer more and more personalised products and services. And this portfolio will only continue to grow in the big-data age,” Verouden said.

    Revenue from DTAC’s online store alone grew rapidly in the first half of 2015, by more than 30 per cent year on year.

    “When you look at growth rates for e-commerce transactions we have just started, I think overall revenue through digital channels will double in the coming year, for the reasons mentioned earlier,” he said.

    “We also see that channel convergence and digital being just part of a customer journey is an important factor, and having this omni-channel mindset is essential to better understand and accommodate customer needs. We are in the top five [among] e-retailers in Thailand, which is quite remarkable for a telco company.”

    Line Pay

    Last week, Line Pay, a payment platform using the Line chat application, made its Thailand debut. Chase Chang, vice president for global business development at Line Pay, said the service would become a mobile payment platform for both online and offline with the aim to drive growth of online commerce in Thailand.

    Currently there are more than 205 million monthly active Line users worldwide. As of January, Thailand was Line’s second-largest country, following Japan’s 58 million, with more than 33 million users.

    “Line is very big and growing very fast. Line is set to be a ‘life platform’. We started from a communication [chat] platform, then we introduced vertical services such as Line TV, Line Music and others. Line Pay is the fundamental for supporting all of Line’s services as well as to support our partners,” Chang said.

    Line users can apply for Line Pay with ties to their credit or debit card for seamless payment for digital goods and services from Line Shop and other online markets.

    Next quarter, Line Thailand will launch the Line e-wallet, which is a Line Pay account that people can tie to their ATM or bank account. When they make a payment, they can choose between their credit/debit card or Line Pay e-wallet.

    Currently more than 100 merchants accept Line Pay. By the end of this year, Line Thailand aims to get that number above 300.

    Retailers go e-commerce

    E-commerce in Thailand is growing by 30-40 per cent per year, said Worawut Ounjai, chief executive officer of COL.

    Recently, COL redesigned its shopping site www.Central.co.th, which is set to be Central Group’s flagship online store. The group’s online sales account for a very small proportion of its overall annual sales of more than Bt150 billion but are expected to grow strongly, because a lot more people are turning to online shopping.

    E-commerce in Thailand currently accounts for about 0.5 per cent of the retail industry, while globally, it is more like 5.6 per cent. By 2020, it should pass 20 per cent.

    Central’s strategy is to harness its strengths, both online and offline, to increase the competitiveness of Central.co.th such as next-day delivery, flash deals, and click and collect. The company has prepared a 40,000-square-metre warehouse that can support online sales of up to Bt5 billion. For now, it offers online shopping via websites and mobile sites only.

    Recently, Central Group also announced it was opening distribution channels for small and medium-sized enterprises through Central.co.th, This is in line with the group’s policy of supporting SMEs to ensure strong and sustainable growth of the Thai economy.

    Central has partnered with Line Pay.

    “With consumers going online for shopping, merchants who are not part of the e-commerce trend will be out of the era and unable to reach a large number of customers,” Worawoot said. “At Central.co.th, customers can pay for shopping with Line Pay. By the end of this year, there will be 100,000 product items available.”

    Global e-commerce platforms

    Recently, the giant Taiwanese e-commerce company PC Home Online arrived in Thailand. It entered a joint venture with Cal-Comp Electronics (Thailand) to set up PC Home (Thailand) to provide an e-commerce platform for Thais.

    The company will launch a consumer-to-consumer (C2C) e-commerce platform in September and aims to have more than 5 million product listings within one year of operation.

    For the first three years, it will offer its service to sellers free of charge, and after that they will have to pay a fee of 1.5 per cent of a transaction value.

    Hung-Tze Jan, founder and CEO of PC Home Online and the chairman of the Taiwan Internet and E-Commerce Association, said Thailand was the best place to land in Southeast Asia because of its well-established infrastructure.

    Meanwhile Ekachai Rukachantarakul, eBay’s Southeast Asia head, said eBay was strongly committed to the evolution of commerce in Thailand, and continued to work with local SMEs. It aims to provide them with a platform through which they can deliver goods and services on an unparalleled global scale.

    Thailand, as the nation with the highest number of eBay retail exporters in Southeast Asia, with annual sales in excess of US$1 million (Bt34 million), is seeing an increasing number of success stories on eBay’s US, Australia, UK and other global marketplaces.

    An example of a successful Thai entrepreneur benefiting from eBay’s platform is Tuff. Wuttinum Sangon, owner of Tuff, uses eBay as an online marketplace to sell his Muay Thai products such as shorts, gloves and protective gear. He said eBay enabled SMEs to compete with larger companies in the global market.

    Similarly, the giant Chinese e-commerce Alibaba.com has focused on Thailand’s e-commerce market. Thailand is a really important and high-potential market for Alibaba.com, said Thomas Ho, Thailand country manager.

    Alibaba.com provides an e-commerce platform for businesses. As of March, the number of registered users in Thailand had increased by 42 per cent year on year. This was natural growth without having a local reseller, so it is possible to expect more growth in Thailand this year.

    Currently, Alibaba.com has around 570,000 registered users in Thailand, mostly buyers.

    Apart from Alibaba.com’s B2B e-commerce platform, Ho said, the company’s other businesses such as AliExpress and AliPay are under consideration for bringing to the Thai market in the future.

    Local e-marketplace

    The local e-marketplace Weloveshopping.com has adjusted its business with the aim of capturing the rapid growth of e-commerce in Thailand and in Southeast Asia and to become leader in e-marketplace segment.

    Sunsern Samaisut, chief commercial officer for the e-business group at Weloveshopping, said no one had yet dominated the e-commerce markets in Thailand and Southeast Asia, while the markets were growing rapidly. The company is confident of becoming the e-marketplace leader.

    This year, it aims to have 10,000 merchants on Weloveshopping.com, with a combined transaction value of Bt2 billion.

    The company refreshed its brand and changed its business model from earning revenue from rentals of online stores to earning commissions from transaction fees ranging from 2.9 to 13 per cent.

    “This year, we strengthened our position in Thailand with the new business model. Early next year, we plan to expand [into Southeast Asia] through two possible models, including to cooperation with local partners and takeovers of local companies,” Sunsern said.

    Fulfilment services

    Order fulfilment is crucial to the success of e-commerce businesses. Currently, there are many such services. The newest one is Thailand Post Distribution. It is a subsidiary of Thailand Post recently established to provide a total logistics solution in Thailand and Indochina with the aim to be the hub of logistics in the Indochina region by 2019.

    The service fulfils orders for medicines and medical supplies, banks and financial institutions, multinational companies, and border traders, said Warakan Srinualnad, CEO of Thailand Post Distribution.

    The company offers a total logistics solution including packing, warehousing, delivery, and payment services for both private

    companies and government organisations. It also utilises 10 of Thailand Post’s 16 warehouses and distribution centres throughout the country to enhance its logistical efficiency.

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