Samart eyes DTRS to gain new revenue
SET-listed Samart Digital (formerly Samart I Mobile), a subsidiary of Samart Corporation, announced yesterday the soft launch of digital trunked radio service, a new flagship business aimed at generating a revenue stream of 50 million baht a month starting this year.
The revenue is expected to increase to 200 million baht a month by 2020.
The digital trunked radio system (DTRS) provides private network communication for state units and industrial sectors via the most reliable two-way radio network designed for mission-critical activities with full features.
The move follows the group’s turnaround plan after Samart Digital exited the mobile handsets and service business last year under the mobile virtual network operator model after years of losses.
Watchai Wilailuck, chief executive of Samart Corporation, said Samart Digital signed a partnership agreement with CAT Telecom in August 2017 to provide nationwide DTRS services, offering one-to-many communication and group calls via CAT’s 800MHz spectrum.
“The official launch is scheduled for June this year,” Mr Watchai said.
Samart is committed to spending 3 billion baht on installing antenna solutions for DTRS using CAT’s 1,000 telecom towers by 2020.
Samart Digital also sells DTRS devices through its marketing channels in a price range of 20,000-60,000 baht per unit, depending on features and requirements. The firm also plans to customise features to meet customer demands.
The tariff package has been set at 800 baht per month per device. Based on the agreed revenue-sharing model, Samart and CAT Telecom will receive 500 and 300 baht, respectively.
CAT Telecom will provide spectrum and telecom assets for the service.
Mr Watchai said Samart aims to acquire 100,000 users of DTRS by the end of this year to ensure a monthly stream of 50 million baht after revenue sharing.
Samart Digital expects to secure some 400,000 users by 2020, boosting revenue to 200 million baht per month.
The company will increase its digital trunked base stations to 1,000 by the end of this year, 18 months ahead of the schedule set by the agreement with CAT Telecom.
Compared with analogue, DTRS can transmit a better signal and offers consistent voice quality. The medium is also more spectrum-efficient and interoperable. It supports integration of data and voice, enhanced encrypted voice and advanced applications.