Thai telcos go on “Creative Pricing Spin” & IDC warn of Thai telcos competition

IDC said it issued a warning on Thai telcos, because it says 3G will result in increased competion for the mass market. Apart from the competition, perhaps, impacting price decision, the Thai telecom regulators are also watching the pricing, with the telcos, earlier, agreeing to reduce price of their 3G service. Already, the telcos are making “Creative Spin” on that pricing reduction agreement and the telecom regulator is not happy. IDC says: The launch of new 3G data plans by all three Thai mobile operators will introduce broad changes to the competitive dynamics among mobile operators, particularly in how they deal with the mass market segment.  IDC issued this warning after a review of the price plans and potential market share of the three mobile operators after the release of their 3G service plans. IDC believes the industry is set for a slew of promotional and pricing competitive pressures in the next six months, possibly resulting in significant churn among the customer base if one of the telco operators does not keep its defenses up. “Competition will be won first by price, and then by performance,” says Neeranuch Kanokvilairat, Senior Market Analyst covering the mobile service market for IDC Thailand. She explains that for white collar workers with the available disposable income, connectivity and tech gadgets are becoming necessities and packages for unlimited data usage plan will certainly prove attractive. “This is especially true among those who are on mobile social media all day, have high consumption of mobile video traffic, as well as those who are into mobile gaming applications.” Neeranuch however stresses that the real disruption will come from the mass market segment.  “If telcos can offer a version of unlimited price plans to blue collar workers, students and younger population with lower disposable income, the  ‘mass market’ impact of 3G/data usage in the country will be significant,” she says (Source).

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