Top Five Strategies for Telcos to Boost Revenues in Thailand

by Buana Sari Digital Marketer

The telecom market in Thailand is a dynamic and rapidly evolving arena. As per Mordor Intelligence, the market size is projected to grow from USD 20.74 billion in 2023 to USD 25.03 billion by 2028, with a CAGR of 3.83% during the forecast period (2023-2028). This growth is primarily fueled by the escalating demand for mobile data, the ascent of 5G technology, and the expansion of the Internet of Things (IoT) landscape.

The surge in demand for mobile data can be attributed to the widespread usage of smartphones and the increased reliance on mobile internet for activities such as video streaming, gaming, and data-intensive applications. Furthermore, the anticipated advent of 5G is poised to amplify this demand even more, considering its capability to provide significantly higher speeds and reduced latency compared to 4G.

The growth of the IoT sector is another driving force behind the telecom market's expansion. IoT devices rely on connectivity, which telecom operators can provide. Moreover, these operators can offer value-added services to IoT clients, including data analytics and enhanced security features.

Top Thailand telecom operators, including AIS, DTAC, TrueMove, CAT Telecom, and Thaicom, are proactively investing in new technologies and infrastructure to cater to the surging demand for telecom services.

In response to the changing landscape, telecom operators are reshaping their business models to sustain competitiveness. This could involve introducing novel services like mobile marketing solutions, cloud computing and cybersecurity or forging partnerships with ad techs like moLotus to deliver innovative marketing solutions to brands.

On a governmental level, Thailand aspires to become an ASEAN digital infrastructure hub and transition into a digital economy. According to the Office of the National Broadcasting and Telecommunications Commission (NBTC), the adoption of 5G could contribute up to USD 9.3 billion to the economy, or ten percent of GDP, by 2035. This aligns with Thailand's ambitious target for the telecommunication sector to add to twenty-five percent of the national GDP by 2027 via the "Thailand Industry 4.0" initiative. This transformative scheme aims to nurture digital creativity and innovation, foster new technological advancements, and promote an economy driven by digitalization.

However, amidst these opportunities, significant challenges persist within the telecom industry in Thailand. These challenges encompass intense market competition, complex regulatory frameworks, the imperative of swift adaptation to technological breakthroughs like 5G, the delicate balance of meeting price-sensitive consumer demands while ensuring profitability, and the ongoing shift from traditional services to digital experiences in consumer preferences.

In this dynamic landscape, telecom CXOs and top-level executives face the task of devising inventive telecom marketing strategies to maximize revenues. As customer preferences continue to change and technology charges ahead, telcos must pivot to remain at the forefront. This article outlines five pivotal strategies that can empower them to boost revenue streams and solidify their foothold in the dynamic Thai market.

1. Undergo Rapid Digital Transformation

A central pillar of the "Thailand 4.0" national development plan is to propel the adoption and innovation of digital and automation technologies across businesses, including telecom companies. It's imperative for Thai telcos to swiftly embrace technological advancements and digitalization across their operations and services. This shift is crucial to remain aligned with the changing business landscape, cater to emerging consumer needs, and tap into evolving opportunities.

Deloitte Thailand conducted a comprehensive Digital Transformation survey spanning 2020 to 2022, aiming to gauge attitudes toward digital transformation. The study involved in-depth interviews with C-suite level participants. The findings from 2022 revealed that digital transformation significantly impacts businesses in Thailand, including the telecom sector.

Given the Thai government's proactive stance in promoting digital transformation, adopting it becomes a strategic necessity for all telcos aiming to thrive. By harnessing technology's potential, telcos can not only modernize their services but also redefine customer experiences, setting new benchmarks for engagement.

Leading telcos have already taken noteworthy steps in integrating transformational technologies, elevating user engagement and boosting revenue streams. For instance, ZTE Corporation (0763.HK / 000063.SZ) and True Corporation, a prominent telecom-tech company in Thailand, have jointly inaugurated the True & ZTE Innovation Center at True Digital Park in Bangkok. This collaboration breathes new life into Thailand's digital transformation, offering advanced solutions that enhance both society and enterprises. This move enhances Thailand's global digital competitiveness, aligning well with the nation's digital strategy (Source: ZTE).

With 80% of telcos in Thailand already investing in digital transformation, an outstanding transformative solution for them is the moLotus mobile video customer interaction platform. Operating on GSM technology, this platform directly reaches mobile handsets without relying on specific device models or the presence of apps or data plans. moLotus empowers telcos to deliver immersive media content like videos and personalized ads, ushering in an entirely novel level of customer engagement. This innovative technology not only enriches customer interactions but also opens up fresh revenue avenues for telcos.

A striking illustration of moLotus's potential lies in its ability to automate and reimagine different customer processes, spanning service and payment reminders, contract renewals, customer loyalty programs, and onboarding. Seamlessly integrating into telcos' operations, moLotus propels them into the contemporary digital landscape, exceeding customer expectations and concurrently enhancing both top-line and bottom-line performance, all while curbing costs significantly.

2. Embrace Mobile Advertising

As per Statista's projections, mobile ad spend in Thailand is set to reach an impressive USD 1.1 billion by 2023, growing at a CAGR of 12.1% from 2022 to 2027. This surge in mobile ad spend stems from the increasing affinity for smartphones and the escalating use of mobile internet for accessing digital content and services.

With Thais dedicating a noteworthy four hours and forty minutes daily to their mobile devices, a remarkable avenue unfolds for telcos and advertisers to directly engage their audience on smartphones. The rapid rise in smartphone users in Thailand is a testament to this trend, with estimates crossing 59 million in 2023. Concurrently, the mobile internet's popularity is soaring, with over 90% of the population projected to have access in 2023, aided by declining mobile data costs, rendering mobile internet more accessible.

Thai telcos are at a crossroads, propelled by a compelling incentive to venture into mobile advertising as a potent revenue generator. The convergence of telecom services and mobile advertising holds the potential to not only amplify profitability but also cater to evolving consumer needs in the digital landscape.

Amidst Thailand's fiercely competitive mobile ad market, telcos must meticulously select strategies and tools for success. An array of mobile advertising platforms complicates the decision-making process, where giants like Google Ads dominate with a comprehensive array of ad formats and targeting options. Equally influential are platforms such as Facebook Ads, LINE Ads Platform, Twitter Ads, and AdMob.

Many telcos have already set foot in the mobile advertising realm. The likes of AIS, Thailand's largest mobile operator, have introduced AIS Ads, allowing businesses to finely target ads based on demographics, interests, and location. Likewise, DTAC, the second-largest operator, has ventured into mobile advertising with the dtac Ads platform.

As Thai telcos participate in the fastest growing mobile advertising revenue segment, the potential of moLotus stands as an exceptional prospect. moLotus empowers telcos to leverage their substantial subscriber base and deliver precisely tailored and engaging ads directly to mobile users, fueling substantial revenue growth. This innovative approach revolutionizes telco marketing, seamlessly connecting telcos with subscribers through hyper-personalized multimedia content, independent of the phone's model or app availability. The result? Not only revenue generation through advertising but also the enrichment of customer loyalty and brand perception.

Furthermore, platforms like AdZis cater to automated content generation, while the widely used LINE offers its ads platform, granting access to its expansive user base. These diverse examples illustrate the breadth of mobile advertising platforms available to Thai telcos. As telecom brands venture into revenue diversification and embrace the potential of mobile advertising, these platforms offer dynamic solutions to engage audiences, amplify revenue streams, and navigate the evolving digital terrain.

3. Monetize Data & Leverage Big Data Insights

The vast reservoir of data accumulated by telcos, commonly known as big data, is evolving into a valuable asset that presents unprecedented revenue opportunities. Monetizing this data involves transforming raw information into actionable insights that external parties are willing to pay for. In Thailand, telco data monetization is gaining traction as telecom operators explore innovative strategies to leverage this goldmine.

The telco data monetization market in Thailand is a growing market, and is slated to grow in the coming years. The telco data monetization market in Thailand is expected to reach USD 1.2 billion by 2027, growing at a CAGR of 20%. The key to success in this market is for telecom operators to develop innovative ways to monetize their data and to build trust with their customers.

The key challenges facing the telco data monetization market in Thailand are the lack of awareness among telcos about the benefits of data monetization, the security and privacy concerns, and the need for telecom operators to invest in new technologies.

Telcos are entering into data-sharing and knowledge-transfer agreements and partnerships with various technology platforms. This could involve collaborating with them to provide insights into consumer behavior, enabling telcos to tailor their offerings effectively. In 2022, True Corporation partnered with Google to launch a data monetization platform to access and use True's data to improve their marketing and customer targeting. In 2023, AIS launched a data-driven predictive analytics service to identify and prevent fraud.

Tools like moLotus use telecom subscriber data to craft customized campaigns. This data carries valuable insights that can boost revenues and decisions. It's used efficiently for mobile advertising and customer improvements through moLotus, boosting average revenue per user(ARPU) and strategic moves. The data insights can be shared with advertisers, helping them refine campaigns for specific audiences. Telcos can generate revenue by giving brands and advertisers access to this data while keeping customer privacy intact. Telcos can develop value-added services that utilize customer data to provide insights and personalized recommendations.

4. Enhance Customer Experience & Engagement

Amid the rapidly evolving landscape of the Thai telecom industry, prioritizing customer satisfaction and engagement has emerged as an important goal. An example of this commitment, AIS has introduced AIS Robot, a sophisticated chatbot adept at addressing customer inquiries regarding products and services. DTAC, on the other hand, has responded with a user-friendly self-service app enabling customers to seamlessly oversee their accounts, recharge data, and swiftly report any issues. Not to be outdone, TrueMove H has established an extensive network of round-the-clock customer service centers in key urban hubs, reaffirming their dedication to delivering unparalleled customer support.

Breakthrough advertising platforms like moLotus are leading this change, transforming how telcos engage and entice their customers. moLotus uses info from telecom customers to create interesting ads that fit their preferences. These advertisements are sent right to customers' inbox, no matter what kind of mobile device they have. This way, moLotus makes sure customers get ads they really like. For instance, telecom brands can send interesting mobile video ads that get customers excited, eventually making them brand advocates boosting revenues.

moLotus offers easy options for customers to respond, like Web Link Click, SMS, USSD, Call, mgram and more. The mobile ads platform offers several rich media formats to improve ad experience, like videos, brochures, greetings, slideshows, and showcases. By adding pictures, voices, and music, telcos can create interesting brand stories and great videos that are short, usually up to 40 seconds, meeting the customers’ declining attention span.

Another example is the LINE Ads Platform that uses the popularity of LINE, a famous messaging app in Thailand. Telcos can use this platform to show ads to their customer base who already use LINE. This helps telcos connect with them who are already interested, making their interaction with the brand even better. To make ads even better, there's AdZis, an advertising tool that makes writing ad copy, articles, and product descriptions easier. This tool helps telcos quickly create ads.

By using these innovative advertising tools, telcos are making sure customers have a great experience. They're not just providing services; they're creating exciting and personal connections with customers. This makes customers feel more connected and happier, improving the whole telecom experience.

5. Partnerships and Ecosystem Collaborations

According to Thailand telecom industry outlook 2023, fostering strategic collaborations emerges as a promising route to amplify revenue streams. Partnering with the right technological entities can serve as a catalyst for telco expansion, granting access to a wider customer base while harnessing complementary expertise and resources.

Such collaborations empower telcos to tap into their partners' customer base. By aligning with entities that cater to a similar target audience but offer distinctive products or services, telcos can extend their reach to a larger pool of potential customers. This expanded outreach significantly boosts brand visibility and enhances revenue generation through more targeted advertising.

For example, in January 2023, AIS joined forces with Adform to unveil a new programmatic advertising platform. Leveraging AIS's data, this platform empowers advertisers to precisely target their ads. Similarly, in February 2023, DTAC partnered with Amobee to introduce an innovative mobile advertising platform that employs DTAC's data to deliver more relevant ads to their intended audience.

Strategic partnerships with trusted technological platforms like moLotus yield positive impacts on Thai telcos' brand image. This enhancement directly contributes to augmented credibility, trust, and consumer confidence, culminating in heightened customer loyalty and, consequently, more robust revenue generation.

Through collaboration with mobile marketing platforms like moLotus, telcos gain access to a repository of resources, a wealth of knowledge, and advanced technical expertise. This collaborative approach can lead to streamlined operations, cost-efficiencies, and access to deep customer insights. An illustrative instance involves utilizing extensive customer data to dispatch ads directly to subscribers' mobile devices, bypassing the need for app downloads or data plans.

Additionally, Thai telecom brands can come up with new and creative ideas that appeal to people all over the country. They could do things like working together on special promotions, putting different products together, or offering unique discounts for customers who use both brands. These types of ideas can help telcos stand out from their competitors, attract new business customers, and boost their revenues. Working with platforms like moLotus also gives telecoms the chance to explore new areas or customer segments, bringing in new opportunities for revenue growth.

Conclusion

The strategies outlined above provide a comprehensive roadmap for Thai telcos aiming to increase their revenue streams. From rapid digital transformation and venturing into mobile advertising to capitalizing on data monetization and fostering strategic collaborations, these strategies present multifaceted approaches to thrive in the dynamic Thai telecom market. It requires innovation, adaptability, and a forward-looking approach.

In this fast-evolving landscape, the role of telco CXOs and top-level executives is more important than ever. They should steer their organizations towards success by embracing new technologies like moLotus and envisioning new revenue avenues.

Your proactive leadership today will determine the success story you create tomorrow!