Samart I-Mobile, the handset flagship of Samart Corporation, has renewed its strategy to provide mobile virtual network operator (MVNO) service in provincial markets instead of overseas, with a possible investment of 1 billion baht (US$28 million).
The company earlier planned to begin the MVNO service--buying minutes wholesale from the large mobile operators and retailing them to their customers--in countries where its strategic partner Telekom Malaysia offers cellular services.
Thananan Vilailuck, the president of Samart I-Mobile, said the renewal strategy aimed primarily at creating a new domestic fixed-revenue stream and strengthening the mobile content sales of its Bug services.
The company planned to negotiate with local mobile-phone operators--AIS, DTAC and True Move--to buy mobile airtime and phone numbers from them. The commercial service would begin by the end of this year.
Mr Thananan said the company would provide a cheap mobile tariff plan, bundled with its content service, targeting customers in the provincial markets.
He also said Samart I-Mobile expected to sell five million handsets for revenue of 12.5 billion baht (US$357 million) this year. Of the total, 2.7 million units would be sold locally, generating revenue of eight billion baht (US$228 million). The remaining 2.3 million units would be shipped overseas, generating revenue of 4.5 billion baht (US$128 million), with 800,000 units earmarked for Indonesia.
The company planned to expand into South America, the Middle East and Western European markets this year, with a regional office in Dubai.
Samart I-Mobile's local handset sales fell short of a five-million-unit target ,with sales of 3.7 million units last year, representing a 28 percent market share.
Mr Thananan said he foresaw no growth for the local handset market in terms of sales volume in 2009 due to the flagging economy and shrinking purchasing power, with overall sales expected to decline.
He said local handset demand was expected to hit 8.8 million units worth 33.75 billion baht (US$965 million) this year, compared with demand of 8.8 million units worth 35 billion baht (US$1 billion) in 2008.
"Handset prices ranging from 8,000 baht (US$228)to 15,000 baht (US$430)are set to be hit the hardest."
However, Mr Thananan said the company expected its market share to increase to 30-32 percent this year, helped by the strong brand, stylish designs and multi-functional features.
Samart I-Mobile plans to introduce at least 30 handset models this year, doubling last year's lineup. Most of the new models would be touch-screen phones featuring high-resolution cameras and screens.
The company yesterday introduced four i-Mobile handset models. The i-mobile TV535 and the i-mobile TV533, priced at 4,790 baht (US$137) each, have a dual SIM-card slot with television functionality. The i-mobile 322 slide phone, priced at 2,990 baht (US$85), also accommodates two SIM cards and the i-mobile Hitz103 is priced only 890 baht (US$24).
Samart I-Mobile (SIM) shares closed yesterday on the Stock Exchange of Thailand at 1.60 baht (US$0.40), up one satang, in trade worth 6.64 million baht (US$189,000).
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