Good morning, everyone. Welcome to our first quarter of 2023 results conference call. First, let me introduce the management. Our CEO, Somchai Lertsutiwong.
Good morning.
Our Deputy CEO, Kantima Lerlertyuttitham.
Good morning, everyone.
Our Chief Consumer Business, Pratthana. Our Head Investor Relations and Compliance, Nattiya.
Morning,
Myself, Somruetai , will be briefing you the results and running this session. The session will begin with a short brief and then going directly into Q&A. At this time, you may also reserve to ask the question through the chat box. Please type your name and corporate name. Let me begin with the highlights. The first quarter of this year showed a further recovery of the economy, driven by continuous return of foreign tourists and international traveling. The global economy indicated a risk of recession, causing the consumer and businesses to be more vigilant to the spending. It is our core strategy that we place our focus on customer experience and profitability. The positive signs in our operations continue since last quarter of 2022, when we started restructuring the price packages.
In the first quarter, we continued restructuring price plans across all businesses while ensuring the quality and values are beyond the customer expectations. On the mobile side, the revenue rebounded year-on-year from better economic conditions, an improvement in customer purchasing power, and a recovery of tourist-related usage. The competitive environment was improved as well, with market price alignment occurring in March. Even though we see a minor drop in ARPU, a lower net add in this quarter, we are still on track with our plans on price restructuring efforts and pricing discipline in focused segments. This will require time to yield further results. AIS will continue prioritizing customer experience while continuously enhancing network and service quality to further deliver the revenue growth.
In the broadband business, we still see there is genuine demand and space to grow. We want to sell quality products with the right price, reflecting the value to uplift the ARPU. It is our aspiration to create digital experience for Thais and fulfill the needs of customers to enhance home internet usage. We constantly increase the subscribers at around 100,000 subscribers per quarter. While we see the revenue growth rate is lower in this quarter, it is due to a base effect in both subscribers and revenue. This quarter we introduced two key products, the FTTR, or gigabit level speed fiber to every room on the same network, and the first in Thailand Wi-Fi 6E, a Wi-Fi standard technology on a new 6 GHz spectrum.
As a result of superior quality and our continuous introduction of new products to enhance the value for the customers, we maintain a solid growth and a stable ARPU Q-on-Q. On the non-mobile enterprise continuously grow year-over-year, driven by vertical solutions created from our collaborations with ecosystem and partnerships. The profitability focus applies to AIS business as well, and we focus on customer segments that can generate better margins. We also expand to bring ecosystem solutions to SMEs to provide better efficiency for the customer's operations. Lastly, we continue our cost optimization initiatives to soften the utility cost impact and in the face of economic uncertainties to ensure efficient operation and deliver the return to our stakeholders. As a result, the core service revenue improved year-over-year from a rebound in mobile business, while SBT and enterprise business maintain the growth momentum.
It declined Q-on-Q from seasonality effects. For the rest of the year, we'll focus on building value in the product and service to uplift the ARPU, focusing on superior service and network quality and in customer segments that generate profitable revenue. Even though the EBITDA grew only 1% year-on-year, our operating profit grew at 4.2%. Consequently, the NPAT increased year-on-year following better operating profit with a gain in FX, but decreased Q-on-Q due to a lower FX gain. Lastly, our guidance remained unchanged, and this is still excluding 3BB impact. We believe a good momentum in revenue and the result of cost optimization initiatives to soften the cost pressures will kick in towards the subsequent quarters of the year and will help us deliver this performance. This is the end of the short brief.
We will start the Q&A session now. Please be reminded that you may reserve your name to ask the question through the chat box. Please type your name and corporate name. First we have Pisut Ngamvijitvong from Kasikorn Securities.
Yes. Hi. Can you hear me? Yes. Thanks for the call. This is Pisut from Kasikorn Securities. May I have four questions?
First, your first quarter core profit and EBITDA growth rate were below your full year growth target. You keep your guidance unchanged. My questions were, what were your unexpected factor to make your first quarter performance below your KPIs? What could be key factors to accelerate growth rates in the following quarters to achieve your guidance? My second question is about your 700 MHz deal with NT. Could you please explain the structure of the deal in detail? What will be the net impact to your P&L from the deal? When will you start to recognize the net impact, and how much value creations do you expect from this deal? My third question is regarding the NBTC limiting measures, specifically, the mobile price cap on True, which should be effective soon, if I'm not mistaken.
I'm pretty sure that you may follow this quite closely, as this will affect the price dynamic for the certain market segments. From your assessment, should we be concerned about the implementation of the price cap that may delay the price fixing situation or price restructuring situation that you are expecting in the market? My last question is about your proposed acquisition of 3BB and JASIF. Is your second quarter deal completion timeline still valid? Given 3BB liquidity issue, is it possible for you to renegotiate for the acquisition price? Is it possible for the NBTC to issue the set of limiting measure over Advanced from the acquisition? Should we be concerned about any regulatory risks from the new government that seem to pro-consumer than the previous government? That's all for me. Thank you.
Thank you. For number one, on the guidance KPI, I think, based on our forecast in our budgeting, you will see two things. First, our product and service is seasonal. First quarter is a starting point, and you go up, especially, will high in end of quarter four. This is a seasonal revenue forecast. Another thing is, when we don't adjust our guidance based on revenue and EBITDA, because we have the good side in term of no not much unlimited plan. However, they just start stopping since Q4 in the last year. Mainly our existing subscriber still hold existing promotion program, so they need time to change time by time.
I still have the high hope that if the economy is better and the new election come, the trend of the revenue and EBITDA should be according to our guidance. That's why we still don't change our guidance today.
Second question on the 700 MHz NT. At this point, even though the cabinet has approved NT business plan, further detail is still needed to work between AIS and NT. We have yet to be able to share the detailed structure of the deal and the impact to the P&L. I think we still need to wait for more agreement between us and NT on the deal. However, what we can share is that within the deal, there will be two parts. There is a part where NT will be renting equipment from AIS, and there's another part where AIS will be able to utilize the spectrum from NT.
In terms of the value creation, we see that within this deal, it will help AIS to support our network leadership, help us to better expand the 700 MHz into the nationwide coverage. I think when we are ready with the deals, we can provide you with further details.
On the third questions on the NBTC remedies, measures that True and DTAC may be implemented. The actual impact is remain to be seen, but I don't think it's gonna be a very big impact. The most important thing happening in the market in the past is unlimited. That's the most important one that destroy the values. That has not been governed in this particular remedy because it's extremely low. With that continue on withdrawing of unlimited plan, no plan, it will continue on helping the industry to grow healthily.
On the 3BB acquisition, I used to update that, all the deal, from NBTC approval should be finished in the second quarter. That mean end of June. Based on the NBTC board member, they have the resolution to set up the subcommittee, for subcommittee to verify our proposal also. It doesn't mean verify our proposal in term of the approve or not approve. They need to verify only on the impact on the economy, impact on the customer side, something like that, to create the measurement to control us. On the approval, I think should be no problem. They have the time frame, they start setting up subcommittee since the early April. They need they have the time frame 90 days.
If they do it quickly within not over 60 days, the time frame should be in June. If they still prolong until 90 days, maybe postpone another one month, something like this. It depends on the board of NBTC. My team still follow with NBTC today. On your question on the new government will impact this deal or not, I think it should not, because our deal is very, very clear in terms of we acquire and ask for the approval. Our deal is not like True and DTAC deal because it not relate to the resources like the frequency. Our deal still have another big player like the NT player and also the fixed broadbands.
The new entrant can come every time, no have any obligation for the other new one to do so. The question on we will renegotiate with JAS or not in this deal. This is the business deal, so I cannot answer you in the public.
Very clear.
Thank you.
Thank you very much.
Next, we have Wasu Mattanapotchanart from Maybank.
Hi. Thank you for the presentation. I have just one question on the prepaid ARPU trend. What I'm seeing is that in the fourth quarter of last year, the prepaid ARPU was flat Q- on- Q, but then it dropped 2% Q- on- Q in the first quarter, despite the rising tourist arrivals and declining inflation rate in Thailand. I think the macro backdrop is quite positive. My question is, why did the prepaid ARPU drop in the first quarter? What is the prepaid ARPU outlook from the second quarter onwards?
Let me take that question. On the prepaid ARPU, from our viewpoint, it's going to be stabilized rather than dropping their mix of customer segmentations, and validities of SIMs. That might cause a little bit of disturbance on the percentage. Overall, we have kind of seen a positive outlook on prepaid spending and ARPU according to economy as well as the tourism.
Okay. From the second quarter onwards, the trend should be more positive than the first quarter in terms of the Q-on-Q trend. Is that a fair assumption?
It's a fair assumption.
Okay. Thank you, Kan.
Hi. We have Hussaini from UBS.
Hi. Good morning. Several questions from me. First is that, what are your observations post competitor consolidation? Have you seen any changes in the network capacity coverage of your competitor? Is it having any implications on mobile competition, either positive or negative? The second is that with the view that mobile competition is on an improving trend, what do you see or where do you see industry service revenue growth potential? Can it go to or can it hit mid-to-high single digit with all this, you know, rational competition? Finally, on your network OpEx, which have stabilized on a sequential quarter-on-quarter basis, is it the new run rate, or do we still see some pressure from the higher energy prices? Thank you.
Yes. Thanks for your question. With regards to, I think the network performance of our competition, of our competitors, post their merger, I think it's best to check with them. I don't think we are in a position to comment on their capacity in their network. On the view of whether industry service revenues will improve to the growth of high single digits, I think right now we are looking at more 3%-5%. That's from our perspective. Since we are 1/2 of the industry, I think we would expect probably service revenues to hover around that, at least for this year.
Subsequent to this, I think, it depends on how market dynamics move in subsequent years and whether there are new innovative products that come onto the market. Third, on network OpEx, whether stabilizing, we don't think there'll be a lot of changes. In terms of tariffs of electricity, I think The government has announced a slight drop in electricity tariffs. We do expect some positive upside down there. Consumption-wise, I think it'll be largely what it is.
This is very clear. Thank you. Just if I can have one follow-up. Any update on tower monetization?
On tower monetization remains the same, so we keep all the study and assessment in-house. There's no further announcement from us at this point.
Understood. Thank you very much. Very clear.
Thank you. Now Piyush Choudhary, HSBC, please.
Yeah. Hi, good morning, management, thanks for this call and the opportunity to ask question. Two questions. Firstly, in mobile, what is leading to a somewhat of higher churn rate? Quarter-on-quarter sequentially it has increased. If you can explain what is driving a decrease in prepaid subscriber base, because I would have thought, you know, given rise in tourism card sales will increase and prepaid, you know, subscribers should increase. What is driving that? That is first question. Secondly, can you elaborate on the price restructuring efforts which have been undertaken on both mobile and fiber broadband? How has been the mobile ARPU trends going in month of March and month of April? Are you seeing, you know, ARPUs, mobile ARPUs kind of inching up month-on-month? Thank you.
Let me address the those two questions. On the mobile, the net add of prepaid and churn rate is highly related to two factors. The first one is inactive customer, who are not using it, has been kind of, eliminated from the base as well along the way with the reinforcement or additional enforcement of PI. For some of those, immediately we terminate them, so you see some disturbance in number a little bit, here and there. Overall trends, we see it's very stable, in term of churns, as well as we see a positive trend, in term of spending and ARPU, if I may. The second one regarding the price restructuring, when we address the restructuring, we restructure the super low non-generated values unlimited, eliminating out from the offering.
We sort of believe that we need to focus, especially on the segment whereby we can serve and continue on generate values, for the industry and the company. That's the restructuring kicking in for the past, at least two quarter, inclusive of the recent quarter as we had the earlier con call last time.
Thanks, Kan. If I might ask, if the restructuring has been happening for the last two quarters, when should we start seeing the impact of that in terms of ARPU upliftment? Like, are these, like, existing customers are on a long-dated unlimited packs and that's why it will take more time? Like, if you can give some color when it will start happening. Also, you know, how is the mobile ARPU trend in month-on-month, like in month of March, month of April? Any, any color on the exit ARPUs for the quarter?
Each customer segment have, or each customer batches have different cycle. For example, like the postpaid, the plan has been committed to the postpaid customer for 12 months. It's all dependent group of customer, as CEO mentioned earlier. We slowly would see later on when the end of promotions, and then the new promotion kicks in or the new tariff plan kicks in for that existing customer base. You start to see the market for the new customer when we have the new plan coming out. You won't easily see the unlimited plan anymore for the low, so-called a fixed fee unlimited plan. That one has been disappear. I think that that's the thing.
The ARPU per month, I don't think we reveal that. We have a very clear aim to make sure that we continue on improve with the values. I'd like to say that.
Got it. Thanks a lot.
Kun Adarsh from Citi, please.
Hi. Good morning. Thanks for the opportunity. Several questions, please. Firstly, on fixed broadband, is it possible to share your views on how big this market could go to? It is a fairly mature market in Thailand, yet it's still growing far faster than Indonesia or Philippines. How big a market do you think this can go to, and where do you see ARPUs as trending? Second question I had is related to Piyush's question. I understand, you don't provide ARPU guidance, but are you able to provide any color with regard to how prices have changed within the last three to six months? Have there been any price tweaks on these unlimited plans in 1Q versus 2Q this year?
Lastly, you mentioned the unlimited plans have been a problem in the past, and it's not covered by the remedy measures. How big a segment of the user base is actually exposed to these unlimited plans? Thank you.
Thanks for your questions. I'll take the fixed broadband question. Currently, the penetration of households in Thailand is roughly about 55%. If you look at other countries where I think infrastructure is pretty good and bank, and Thailand is actually a maturing country, so easily it can go up to 80%, so there's a fair amount of growth.
We think less in the fixed broadband industry, 80, 85 depends. Also the conversion from older technologies such as DOCSIS copper onto fiber. We believe there's upside. As to how prices have changed in the fixed broadband, what you note in the last two quarters is the disappearance of very low competitive price plans such as THB 299, which are actually hovering very close to cost. Really, as we expand the network to reach further outside of cities, such prices are unsustainable, which is why you see an updrift in pricing in the market.
For the second question regarding prepaid, I add a little bit colors on prepaid and postpaid. For prepaid, give you examples of past year, people saw and was available, for example, 150 THB of unlimited data at 4 Mbps, plus unlimited voice. That's one example. The second example is 200 THB per month for 8 Mbps unlimited data plus unlimited voice. That was last year. Towards the end of the year, we see this unlimited voice disappear, intentionally from us, that we don't think it is viable to provide such plan. We did exit from unlimited voice, as well as this year, for the first quarter, of that unlimited data we have a cap of the volume.
That's the prepaid example, that I may depict it over the course of 12 months. For postpaid, the low plan, such as THB 200 to 299, it was available, for example, like at 10 or 20 Mbps unlimited data that has also been capped, as a volume. I hope to give you some of the colors to start. Thanks for.
Since there seems to be a lot of questions around the competition, the improvement in the ARPU, may I add a bit here that when we talk about price restructuring, actually started from late of third quarter last year. The price improvement was quite managed in such a way that it's gradual changes. Last year, like Kantima mentioned, we did remove first the unlimited voice, and then subsequent quarters we started to put in the price cap. We also see that competitors had follow in some of the plans that we have, but they might continue to maintain to be aggressive in certain areas. We hold tight on the direction of price restructuring ongoing.
One other thing is that when we restructure the price in Thai market, because each month we continue to sell a large amount of new SIM into the market. When we restructure the price, it means that we sell new price, new customer at the new price, but we cannot force existing customer to go on to the new price. What we can do is, number one, when the existing customer, end their existing promotion, we will offer them the new price, or they will have to roll over onto whatever available in the market. If we can keep the price in the market at a new level, that will be kind of a subsequent quarter improvement in terms of the trend.
Secondly, what we can do to the existing subscriber is the CBN or basically using our call center to call out and address certain segment group based on the data analytic models. To the segment that we believe that they have the ability to that we can upsell or cross-sell in order to improve the level of ARPU. All in all, what we're saying is that we will continue on the track of price restructuring. It will take a bit some time, but we continue to address both in the new subscriber segment and also the existing segment.
Thanks. Okay, if you can clarify how big a segment would be exposed to these unlimited plans.
Probably close to about 25%.
Understood. Sorry, that is of subscriber base or revenues?
Customer base.
Understood. Thank you very much. Very clear.
Next we have Khun Thitithep from KKTS.
Hi. Can you hear me? Hello?
Yes.
Okay. I have three questions. Number one, for the fixed broadband penetration to move up from 55% to 80% or 85%, do you think that the operator needs to lower the ARPU to make the service more affordable for the lower income household? Second question is on the enterprise revenue, which grew about 7% year-on-year. Is that in line with your target? Because I, my impression is that the cloud service and the DC service is supposed to growing at a much faster rate. Third question is a bit long. It's about 3BB. Okay, 3BB default just twice within the first five months of the year.
I think your stand is that after the acquisition is over, you are not going to cost subsidize 3BB, which means the renegotiation with JASIF on the rental contract, it's possible. Don't you think that after you take over 3BB, the renegotiation would be even more difficult because everybody knows that you have a very strong balance sheet to cost subsidize 3BB, and then you have to protect your bank equity. You have to make sure that the service of 3BB is not interrupt. just would like to hear your thought on that. Thank you.
Hi. Thanks. On raising the FBB penetration from 55% to 80%, we are not approaching this on the basis of lowering prices to attract customers. From our perspective, a broadband connectivity is now a critical part of any business or anyone working from home. For good, stable, quality connection, you really need a fiber connection, pretty high speed, not low speed. It has become practically a necessity, so we think it is something that subscribers, households will need. In fact, I think even at our current offering, we think that prices are pretty accessible to most people. Of course, there's always a segment that will not adopt, that's why we say 80% penetration.
On enterprise revenue, as to why revenue in cloud is not growing as quickly as I think last year. What has happened this year is, as we have mentioned, it is a pivot to focus on profitable revenue growth. In particular, even in the sale of cloud, especially when it is not our cloud, it is a hyperscaler cloud, it depends really on whether there are adequate margins, whether we see adequate pull-through in other enterprise revenues from products that we sell, such as our EDS, such as our enterprise mobility solutions. Yes, I think you might see a slowing growth in enterprise cloud revenues, but you should see better profitability.
For the 3BB question, I will answer you to set the cap first. As before the acquisition complete, you can see JAS also have some requirement to deal with JASIF also to change some condition. This is their duty to do so before we got the acquisition. However, after we get the acquisition done, as I update to you now, we are talking in the business deal with JAS now. I still cannot tell you in the real plan to do so now.
Right. Okay. Understood. Thank you very much.
We have Ranjan from JPMorgan.
Hi. Good morning, management. Thank you for the presentation and the opportunity. A couple of questions from my side. Firstly, on the 3BB acquisition, all the amounts that they have defaulted to JASIF, if AIS was to acquire them, would this be liable to pay those defaults prior to acquisition? The second question is on 5G enterprise. If you can talk about some of the use cases that have emerged. Singtel seems to be talking about its PAaragon platform, and AIS is a partner. What has been the impact in terms of adoption of this and any impact on 5G revenues? Thank you.
Ranjan, can you state your first question again? We can't hear clearly from here.
Sorry. For the first question on 3BB, I understand that there have been a couple of defaults on obligations to JASIF. If AIS was to acquire JASIF, would they be liable to pay those amounts due pre acquisition?
Okay. Your, your first question, on 3BB, do I understand correctly that you mentioned about this, default, between 3BB and JASIF, and you ask if those default will fall into liability post-acquisition for AIS?
Yes, that's right. Yes.
Okay. I think that's why we're mentioning about renegotiation of the rental. Currently, it's still in the hands of JAS. Depending on how JAS will deal with this liquidity issue, it's also part of the deal. I think JAS is still trying to find a way on this default. Post-acquisition, I think that's something in the future. We can discuss that later after the acquisition is complete.
On the use cases for 5G, yes, AIS has adopted the Paragon platform. Right now, I think some customers are beginning to be deployed on this platform. We see interest in the market because we come later than Singtel, who originated this platform. We are a bit slower in the adoption curve, but we begin to see interest from the market. There have been other solutions such as private 5G network being explored and discussed. Encouraging signs, I will say, on the 5G in the enterprise space.
Okay. Thank you.
Next we have Khun Thorada from BLA. We'll take Kun Izzati Hakim from Macquarie.
Sorry, can you hear me?
Yes.
Hi. My first question, sorry to go back on competition. You mentioned about market pricing alignment, in March. I'm wondering, what is the development from March until May? Has it been stable or has competition improved further?
Okay. Let me address this one. When we talk about alignment, it's more internal alignment, how we manage across customer portfolios. We continue to put forward the propositions. We have seen so far, it has been on the right track, towards April and May.
Thank you. My second question is on overall costs. I understand that your utility costs have increased, but you managed to keep the overall costs under control, mainly from cost reduction in other areas. I'm wondering if you can share or highlight some of the cost controls that have helped you.
Yeah. I think from really, cost control across the board, starting from discretionary, controllable costs such as advertisement, marketing. Okay. I think my colleague, Nattiya Poapongsakorn will answer this question.
Our cost optimization throughout the year will be executing basically, through almost all the line items. First off, on the network side, as we know, the rising of electricity costs year-over-year will take a full year impact. We've done a number of things, such as on the rental negotiation of where our site is located. On the maintenance and the operating work, we have done some improvement in the utilization and also optimization of the process. The base station energy itself, even though the price per unit of the electricity is high. Yes. We are doing the optimization with the AI technology, in order to reduce the energy consumption on the base station. On the service side, which is still on the cost of service.
Customer service now, we are revamping our application and also the customer process. Actually, on our call center, we have already applied the AI chatbot for quite some time. We continue to forge on driving more digitalized responded to the customers. Less manual work from customer service point of view. It also includes the effort to also optimize the channel operation at the shop that we have as well as the bad debt collection improvement. That all will help us improve in terms of the part is in the cost of service, some part in the SDMA. IT optimization. As we are a very long operating company, normally there's a lot of legacy system in terms of IT.
This IT optimization or actually digitalization is not just for the effort of cost leaning, but also to improve how we can serve customer faster, better, and real-time in the future. Lastly, in terms of SDMA, besides the channel operation and bad debt collection, the marketing optimization is a big thing, and you've seen in the number of this year as well. We have managed a lot on the advertising as well as the incentive that we provide to the channels and also managing the content cost and the effectiveness of the campaign.
Can I take it that marketing will sort of be on a better cost control trend for the full year, and it's not just seasonal that we see it being a lot lower in the first quarter?
It happened in seasonal as well in terms of marketing, overall, I think of this is optimization and digitalizations. Now today is no longer being a one way out on the advertisement to the mass media. There's a lot to do with digitalization, personalization as well. You will see it all across the year. Unavoidably, they are seasonal, in term of, new product launch, the, seasonalities of the holidays, year-end and so on.
Thank you very much.
Kun Bios, HSBC, please.
Yeah. Hi. Thanks again for the opportunity. Two questions. Firstly, you know, we are seeing data usage has been rising, and you are doing this deal with NT on 700. After that, could you talk about what are your spectrum needs and when is the likely next spectrum auction, if any? Secondly, sorry, coming back again to the mobile, you know, price plan restructuring. You mentioned 25% of the subscribers are on unlimited, but 75% are on other plans, right? What price plan restructuring are you doing for that remaining 75%? If you can throw some light. Thank you.
Let me address this as the data growth and spectrum. Currently we have sufficient spectrum to support the growth of customer. The next round, if I'm not mistaken, for the spectrum, it would be 2025 that's coming to the end. Am I right?
If I may supplement that. I think the Thailand has not quite assigned the 3500 spectrum, that will become available. When it becomes available today is unknown. I don't think NBTC is in a position to comment on that. To Kun Pratthana's point that some spectrum are becoming available or expiring in 2025. In particular, I think there will be 2300 MHz which will be expiring. All these are all available for bidding.
On the spectrum itself, nah, I always communicate that spectrum is very important resources to do our business. However, based on existing situation, we have enough spectrum for long, until our business it's going on like this, nah. When year 2025, I think should not have urgent auction today because Thailand market today only two player and new entrant is very hard to come. The other operator to DTAC also not need much in terms of spectrum. Even there are the news that 3.5 GHz will be coming soon if it's available. I don't think so. It will coming up as soon as we expect, nah.
They may do all multi auction in the next two, three years because they have to re-align or spectrum auction align for operator in Thailand. AIS also very willing to cede or opportunity even to True Corp for the PoT. We are also very interesting when we have the plan. I think we will talk to NBTC, try to multiband auction in the same time for the future, not short term like the past, because the past we are already lacked of the spectrum to do the business. Today, both of operator, we have enough spectrum should we plan for the future in long term.
Let me address the last one regarding the pricing one more time. The large customer base you mentioned about 75% in brief, that each individual customer have certain needs, maybe can group into a segment. They all use slightly different. Basically the most important thing for us is to provide so-called the next best offer for the each of the customer segmentations. For example, one who want to continue on using social media, video streaming, we see uprising, so we will provide them with the best offering for them to hop onto. For example, like one who have 4G and is about to go to 5G, so we offer for 5G. That continue on as the fundamental important for us to offer the right relevance for customer in, per se, to upgrade to.
Got it. Thanks a lot.
We're sorry. We going back to Kun Izzati Hakim from Macquarie.
Hi. Can you hear me?
Yes.
All right. Three questions from me. The first one is just to clarify on the subs that are exposed to the unlimited plans, 25%. Is that overall subs or just the prepaid subs? The second, do you foresee any risks in terms of populist policies that will further intervene with mobile pricing? Or you believe the Thai telco sector has been more agnostic to this development. In other words, do you foresee the election outcome as influencing any parts of the AIS business and if there is any impact? Last question from me. On the tourism side, can you just provide some color on the rough split or market share for the tourists that are coming in? How many of them are going to AIS versus your competitors?
Because they do claim that that's a strong segment for them as well. Another way to put it, how big of a tourist stop is in your prepaid segment now?
The first one regarding the unlimited plan. There are a variety of a small plan, roughly 20,000 when I mentioned about it, inclusive of postpaid and prepaid in general. I think that's the first one. The second one, I believe you mentioned about the regulatory enforcement for the merger, if I'm not mistaken. Am I getting correctly or related to the government only?
Um, not.
Can you repeat the second question one more time?
Not the merger specifically, just the election outcome and any populist policies that might intervene with mobile pricing for the whole sector, in addition to whatever that is already there. Do you foresee any impacts there?
Very difficult to comment on this, but we do not believe there would be any particular things, on, mobile tariff.
Okay.
Your third question, please.
On the tourism side, how much of the market share that is split between AIS and versus your peers?
It's hard to mention exact percentage.
Yeah.
Customer have mixed use of the international roaming who coming in, as well as the local prepaid. There are large tourists who come here and purchase local prepaid, or they even subscribe before they fly over. For example, like the Chinese tourists who have not come back yet in full, so they may purchase before they arrive. I would say if you talk about roaming, I believe this is the very strong segment coming back. Percentage may be up to the alliance that we have. AIS belong to Singtel Alliance, as well as the Bridge Alliance that we have a larger network. I do expect that would help support the growth of inbound roamers. That's on the roamer side. On the bus.
The casual travelers or the prepaid, the traveler normally inflow at this point, I think, that would be roughly about 20 million, maybe 2 million+, a month. A couple hundred of thousand has been adopted as a prepaid. It's a short life though. They stay over from few days until few weeks, and then they leave. That's also a dynamic number. I may not be able to address your question exactly at how many %, in terms of market share.
Sure. That's clear. Thank you.
I may add on the revenue portion. To our revenue, I think this is still below 2% today, right? But this is coming back pretty much close to the number of tourism coming back, which is about 40% of the pre-COVID level. When we talk about tourism segment in terms of impact to our revenue, direct impact come from two sides, both inbound and outbound. We talked about the inbound, the Chinese tourists, foreigner tourists, but there's also a big group of Thai population going out as outbound, and we do have quite strong product there. In total, this, as I mentioned, is only coming back for about 40% of the pre-COVID level. We still expect quite a long way to uplift.
All right. Clear. Thank you so much.
Last question from Hussaini, UBS.
Yes. thanks again. Just wanted to check, what is the validity or how long those unlimited 150 and 200 baht plans valid for? Just wanted to understand when those customers or subscribers will roll over to the next price plans. Thank you.
Most of them are 12 months.
Understood. Yes. Clear. Thank you.
I think we have all the questions for the session. If there's no other questions, we'd like to thank you everyone for participating in this call. See you again next quarter. Thank you.
Thank you. Bye.