5G to bolster mobile service revenues in Thailand to $12.1 billion by 2026

5G Thailand mobile service
Image by Tong Patong | Bigstockphoto

On the back of increasing 5G subscriptions and mobile data consumption, GlobalData forecasts the overall mobile service income in Thailand to rise at a compound annual growth rate (CAGR) of 6.3% from $8.9 billion in 2021 to $12.1 billion in 2026.

Mobile data service revenue, in particular, is anticipated to increase at a solid CAGR of 10.3% from 2021 to 2026.

“The average monthly mobile data usage is expected to increase drastically from 12.5GB per month in 2021 to around 23.9GB per month in 2026, driven by the growing consumption of high-bandwidth online entertainment and social media content over smartphones,” said Aasif Iqbal, Telecom Analyst, GlobalData.

By 2025, 5G subscriptions will outnumber 4G subscriptions and account for 81.4% of the total mobile subscription market share in 2026, owing to network expansion by all major operators, including AIS, TOT, Dtac, and True, as well as an increase in the number of 5G enabled handsets on the market.

AIS will continue to lead the mobile services market in Thailand in terms of subscriptions by 2021, according to Iqbal. The company will continue to lead both prepaid and postpaid segments through 2026, aided by a strong presence in both markets.

Furthermore, the company is focusing on 5G network expansion and maintaining 4G service quality. To establish 5G leadership, enhance 4G quality, and invest in digital and enterprise service platforms, it has planned to spend THB25 billion ($0.8 billion) – THB30 billion ($1 billion) on capital expenditures.

This month, AIS announced a collaboration with Tata Consultancy Services to provide TCS’ IoT smart manufacturing capabilities, which will be marketed across Thailand’s major industries including manufacturing, logistics, transportation, property, and smart cities.

“With the pandemic easing, major mobile operators are now focusing on 5G in-building expansion to capture demand from corporates and the public,” said Sayam Tiewtranon, Managing Director of Turnkey Communication Services (TKC), a provider of telecom and ICT (information and communications technology) solutions and services.

5G’s potential to boost Thailand’s global competitiveness has been highlighted at a recent seminar, with authorities and experts predicting that 5G technology will help grow the value of 5G-driven business and services to THB 650 billion ($1.9 billion) and 130,000 jobs by 2030.

Related article: Thailand regulator (NBTC) raises USD3.2 billion from 5G auction

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