AirAsia is jumping into the telecom business in Thailand with the aim of revolutionising the industry under the tagline “Now Everyone Can Talk”.
Tom Kruesophon (right) and AirAsia chief Tony Fernandes shake hands after signing the agreement to set up Tune Talk Thailand.
Asia’s largest low-cost airline signed a 49:51 joint-venture deal last week with a group of Thai investors to establish Tune Talk Thailand Co.
The company, with 100 million baht in registered capital, will provide 3G wireless broadband services on behalf of TOT Plc, with the planned debut of its Tune brand on Jan 13.
Tony Fernandes, the founder and CEO of AirAsia, said his entry into the Thai mobile market was intended to create a new value-added lifestyle and low-cost communications service with “one SIM card, one flat calling rate throughout the region”.
“We have the necessary elements for success – solid distribution channel and the extensive customer base of AirAsia – to make our mobile expansion in Thailand gain a greater foothold in the region,” he said.
AirAsia expects to carry 33 million passengers on Asian routes this year, 12 million of whom are inbound and outbound passengers in Thailand. It wants 51 million passengers in the region in 2011.
Tune Talk will use the Celcom (Malaysia) network in the region.
AirAsia, known for the slogan “Now Everyone Can Fly”, has also invested in a no-frills hotel business to develop Tune hotels throughout the region.
Tune Talk will market 3G services on behalf of TOT as a so-called mobile virtual network operator (MVNO).
Mr Fernandes said he planned to apply AirAsia’s strategy to make wireless data usage more accessible.
The company plans to focus on providing no-frills voice roaming and a seamless data package in a simple, value-for-money product with attractive incentives, easy accessibility and the widest distribution reach.
“We are confident in the Thai market now that TOT has set a clear 3G business direction, and AirAsia is the first company in Thailand with strong MVNO experience,” he said.
He shrugged off any concerns over telecom legal hurdles and ambiguous regulations, saying AirAsia had had its share of experience with bureaucracy because of the nature of the airline business, which it considers the most complicated industry in the world.
He also believes his timing is perfect. With the 3G expansion plan of TOT still not clear, he sees it as a good opportunity for the company.
Tom Kruesophon, the managing director of Tune Talk Thailand, said he believed that bringing foreign operators to join TOT’s 3G plan was the only way for the state telecom enterprise to survive.
The company plans to spend 300 million baht on marketing and administration under a three-phase budget plan.
Mr Tom said its target customers were existing AirAsia flyers, tablet-computer users and an underserved segment who have never used data services.
“We expect to have 500,000 subscribers within 18 months of operation, and 1 million customers by 2012,” Mr Tom said.
Tune Talk is aiming for average revenue per user of 150-200 baht per month. About 500,000 customers are needed for profitability, he added.
Tune Talk plans to sell MVNO SIM cards on AirAsia planes. Customers can redeem Tune Talk points for free AirAsia flights as part of its promotional campaign, Mr Tom said.
Tune Talk Thailand, through TKC Co, has received an MVNO licence from the National Telecommunications Commission.
Article via Bangkok Post
