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 Total Access Communication Public Company Limited or ¡°DTAC¡± is one of the leading telecommunication services providers in Thailand, founded in August 1989. It provides services with 800 MHz and 1800 MHz frequency bands under a concession granted by the CAT Telecom Public Company Limited (¡°CAT¡±). As of March 7, 2005, the Company's
registered capital was 5,350,010,260 baht in which 4,744,161,260 was issued and fully paid.
To promote the development of telecommunication services in Thailand, the private sector was allowed to participate in the telecommunication market under concessions on a Build-Transfer-Operate (¡°BTO¡±) basis with two state enterprises, which has been incorporated as TOT Corporation Public Company Limited (¡°TOT¡±) and know as TOT Public Company Limited and CAT Telecom Public Company Limited (¡°CAT¡±).
Under the BTO arrangement, the private operators, as concession holders, are required to build network infrastructure and transfer the assets to the state agencies granting the concessions. The operators thereafter have an exclusive right to use the assets during the term of the concession and operate cellular network to provide services on a revenues sharing basis with the state agencies awarding the concessions (in our case ¡®CAT¡¯) in return for the exclusive right to the use of the allocated frequency band.
DTAC is one of the two largest service providers in Thai market, operating cellular services under the DTAC brand. As of the end of December 2004, DTAC had 7,786,165 customers on our network which accounted for market share of approximately 29%.
The wireless penetration rate in Thailand has increased significantly from 5% in 2000 to 43% in 2004. Despite a slower rate of growth, wireless telecommunication continues to develop. At the end of 2004, there were approximately 27 million mobile customers, representing a 23% increase year on year, compared to 119% and 26% 2002 and 2003, respectively.
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When a telecom operator plans to introduce a new service, it should carefully consider many issues: the operator should invest in buying and implementing a system required for the new service; the operator should prepare the service promotion plan after launching; the operator should consistently operate and maintain the system, and care about the customers. Regarding these issues, the operator needs considerable amount of money and resources for a new system.
Especially when the operator lacks the experience in operation of similar service and is hard to bear a heavy investment, it needs a helper to share such burden, and so does DTAC before introducing Ring Back Tone (RBT) service. |
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Application Service Provider (ASP) is a service provider who operates and manages networks, systems and services for the telecom carrier, and shares the revenues generated from them with the carrier. Among different business models, ASP model is a completely new way to operate businesses and services. Since the ASP model can drastically lower the costs of services, many carriers or operators especially who start up a new business without enough money or knowledge can benefit from it.
As an ASP, UANGEL entered partnership with DTAC to offer RBT service. That is, UANGEL does not simply supply a turn-key based solution; we took charge of system development, service consulting and operation, customer care, and system/service maintenance. DTAC therefore introduced the new service without initial investment and additional operation costs while the ASP (UANGEL) developed and implemented the service and has continuously been operating and managing the service until now. Instead, the ASP gets some portion of the service revenue for those services.
In this ASP business model on a revenue sharing basis, the roles of the customer and the ASP are effectively divided and thus, the business can go on smoothly. Moreover, the customer and the ASP can have mutually reliable partnership because they share costs and risks together for the same business. |
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Since 2000, UANGEL has been running various ASP businesses for domestic and overseas telecom carriers. With its advanced technology and rich experiences in similar businesses, UANGEL stably provides quality RBT service to DTAC subscribers. DTAC can get UANGEL¡¯s technical assistance whenever they need it, and can easily and rapidly implement additional functions and services.
The number of RBT service subscribers exceeded 1,000,000 as of December, 2005, and is constantly increasing up to now. |
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