Loxley Mobile promises to stay in market

Loxley Mobile, owner of i-Kool brand, a mobile operator under the mobile virtual network operator (MVNO) model, insists it will keep on providing mobile service via TOT’s 3G network even though it has less than 10,000 active subscribers after eight years of operation.

“i-Kool has booked operational losses, but it was only 1 million to 9 million baht per year,” said Suroj Lamsam, president of trading conglomerate Loxley Plc, the parent company of Loxley Mobile.

MVNOs are alternatives in the mobile market that offer healthy competition, but they face tough challenges because their operations have a low profit margin.

An MVNO is a company that provides mobile services but lacks its own mobile network, renting mobile network capacity from other firms to provide service.

The i-Kool brand entered mobile service i n November 2009 by renting TOT’s 3G network capacity on the 2100-megahertz spectrum, especially for heavy data users.

Mr Suroj said the average revenue per i-Kool user is 170 baht. Most operations for i-Kool are automated systems, with only two employees working routinely today.

“We still see business opportunities in mobile service,” he said.

Mr Suroj said three international companies are interested in joining the business with Loxley Mobile as sub-licence partners.

“The three companies plan to talk to TOT, but it is too early to go into details,” he said. “There are several pain points in providing mobile services under the MVNO model as we struggle to compete with bigger rivals amid highly intense competition.”

Rungsun Channarukul, senior executive vice-president of TOT, said three MVNO operate on TOT’s 2100MHz network: White Space’s Penguin SIM, Loxley’s i-Kool and Mobile 8 Telco Thailand’s BuzzMe.

TOT also operates its own 3G service under the TOT3G brand, and there are 120,000 subscribers.

Previously TOT had five MVNOs on its 2100MHz network, but three quit the business: 365 Communication, Samart I-Mobile and M Consult Co.

Mr Rungsun said the mobile market in Thailand must have MVNOs as alternatives.

“I think 5% out of a total of 105 million subscriptions should be provided by MVNOs,” he said.

TOT is open to discussions with existing MVNOs or newcomers interested in joining the market, Mr Rungsun said.