Winners
AIS
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By Liu Ping
39
Nine million users
migrated in five months
Migration from 2G to 3G is a big step for any operator, especially in the developing markets,
where even a modestly priced smartphone can seem luxurious to most users. Few have
handled the transition better than Thai mobile leader AIS, which deployed over 3,000 NodeBs
in Bangkok and migrated nine million users over the span of a mere five months, making it a
role model for other operators looking to embrace MBB.
Editor: Pearl [email protected]
MAR 2014
T
he 2G era in Thailand was marked by
fierce competition, with three major
players vying for 66 million users. AIS
was the undisputed mobile champ with
a 45% market share, but it was not immune to
what ails a mature 2G market.
When 3G arrived on the scene, AIS had a
chance to both profit from the early adopters
and free up bandwidth for those still using the
legacy gear. As Saran Phaloprakarn, Senior Vice
President of AIS, has stated, “Migration of 2G
users to 3G is an established strategy of AIS, to
improve user experience and brand value, enhance
competitiveness, and promote business success.”
However, he also said, “To realize fast and smooth
migration of 30 million 2G users to 3G networks
and make them accept and enjoy the new networks
is definitely no easy job.”
A four- pronged attack
AIS made great efforts on four fronts to assure a
successful 2G/3G transition.
High-performance, high-capacity UMTS
A 3G network is a white elephant if the user
finds the experience no better or even less pleasant
(due to the increased costs involved) than it would
be for 2G. From the very beginning, AIS made
certain that wherever UMTS was deployed, the
coverage was equal to that for its 2G (900MHz)
network, keeping those annoying switch backs
Rather than simply target everyone, AIS smartphone offers
went out only to valued users or potential valued users;
this enabled a balance for the operator between cost and
revenue growth.
MAR 2014
40
Winners
Over the five months it took to migrate nine million
subscribers, AIS saw its stock price surge by 60% – proof
that there really is profit to be had in mobile broadband.
to the latter at a minimum. With the help of
Huawei, AIS accurately predicted hotspot areas and
planned accordingly to ensure sufficient hardware
and software resource support, resulting in 3,000
UMTS base stations deployed in Bangkok in only
five months’ time.
To support the rapid surge of 3G users as well
as their ever-increasing demand for better user
experience, AIS also explored Huawei’s advanced
multi-dimensional solutions, including Atomcell
and LampSite, to build heterogeneous networks
(HetNets) in Bangkok’s central business districts
(CBDs) and shopping centers to effectively boost
coverage and capacity. Huawei also shared some
of its vast body of knowledge with AIS, effectively
mitigating the risks of signaling storms and other
forms of network overload.
A diverse lineup
AIS worked out two different approaches to
guide user migration. For premium users who
already had high-end smart terminals, it only took
a USSD call for them to migrate; no physical SIM
swap was necessary.
For those using feature phones, AIS worked
with its partners to offer a series of smartphones
that could meet their basic needs at a reasonable
cost, and still stimulate uptake of data services.
One thing to note is that, rather than simply
blanket everyone, AIS targeted only valued users
or potential valued users; this enabled a balance for
the operator between cost and revenue growth.
Flexible tariffs
AIS chose to offer a rich variety of flexible tariff
plans for different user groups. For demanding
41
iPhone users, AIS offered packages at 7, 15 or 27
U.S. dollars with bundled voice, text, and data. For
Samsung and HTC users, AIS also offered varieties
at 12, 20, 25 and 32 dollars, with voice and limited
or unlimited data.
Mo re ove r, A I S a l l owe d u s e r s t o p a y f o r
additional traffic beyond their packages when
need arose. Though the amounts were small, the
convenience was great. For low-end users, 10MB
might be provided for an extra 30 cents, with one
day of validity.
Another unique service offered by AIS is that it
allowed users to log in for data services via different
SIMs over smartphones, tablets, and data cards,
under one number, or five SIMs at most under one
account. Users who paid ten dollars for 300MB
traffic over the first SIM only needed to pay twelve
dollars for 1GB traffic over each of the remaining 4
SIMs.
Commercial promotion
Of course, good old-fashioned commercial
promotion is indispensable. AIS employed celebrity
endorsements, TV commercials, cooperative
promotions with restaurants, and print ads on
streets, landmarks, buses and subways, effectively
improving 3G’s brand value, stimulating user
adoption.
A working model
Over the five months it took to migrate nine
million subscribers, AIS saw its stock price surge by
60% – a clear demonstration that AIS did a great
job with its 3G plans, and proof that there really is
profit to be had in mobile broadband.
MAR 2014