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Total Subs.Q3 2015

2GSubscribers

3GSubscribers

4G Subscribers

MVNOs450MHz

850 MHz

900 MHz

1500 MHz

1800 MHz

2100 MHz

2300MHz

TotalMHz

37,810,700 1,915,900 35,894,800 - - - - - - 15 MHz 15 MHz - 30 MHz

270,000 270,000 (incl. MVNO subs) - 3 - 15 MHz - - 20 MHz - - 35 MHz

26,452,000 2,997,000 21,855,000 1,600,000 - - 10 MHz - - 25 MHz 15 MHz - 50 MHz

- - - - - - - 10 MHz - - - - 10 MHz

90,600 90,600 (incl MVNO subs.) - 3 10 MHz - - 35 MHz - 15 MHz 64 MHz 124 MHz

18,465,000 43,000 16,422,000 2,000,000 - - MVNO*(0 MHz)

10 MHz - 15 MHz 15 MHz - 40 MHz

* An MVNO does not own spectrum

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UPDATE 22 MARCH 2016: JAS Mobile failed to meet the deadline and payment for the second slot of the 900MHz

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450 MHzTOT

10 MHz‐Bandwidth

850 MHzCAT

15 MHz‐Bandwidth

900 MHzTRUE

10 MHz‐Bandwidth

900 MHzJAS

10 MHz‐Bandwidth

1800 MHzTRUE

15 MHz‐Bandwidth

1800 MHzAIS

15 MHz‐Bandwidth

850 MHzDTAC

10 MHz‐BTO Ends 2018BTO ends 2018

2100 MHzTOT

15 MHz‐Bandwidth

2100 MHzTRUE

15 MHz‐Bandwidth

2100 MHzAIS

15 MHz‐Bandwidth

2100 MHzDTAC

15 MHz‐Bandwidth

1800 MHzCAT

20 MHz‐Bandwidth

1800 MHzDTAC

25 MHz‐BTO

BTO ends 2018

2300 MHzTOT 4G

64 MHz‐Bandwidth

2600 MHzMCOT

48 MHz‐Bandwidth

2600 MHzPRD

24 MHz‐Bandwidth

License ends 2025

License ends 2025

License ends 2027

License ends 2027

License ends 2027

License ends 2033

License ends 2033

License ends 2030

License ends 2030

License ends 2018

850 MHzTRUE | 168 | NTT

MVNO = No Spectrum

2100 MHzMojo3G iKool i-mobileMVNOs = No Spectrum

License ends 2025

1500 MHzTOT

35 MHz‐Bandwidth

1500 MHzCHEVRON

28 MHz‐Bandwidth

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AIS is in talks with TOT – DTAC – JAS MOBILE

TOT is in talks with AIS – TRUE

JAS MOBILE is in talks with AIS – TOT – CAT TELECOM

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CAT is in talks with TRUE - DTAC

DTAC is in talks with CAT TELECOM - AIS

TRUE is in talks with CAT TELECOM - TOT

TOT and DTAC are not talking…yet

AIS and TRUE are not talking…yet

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450 MHzTOT

10 MHz‐Bandwidth

900 MHzTRUE

10 MHz‐Bandwidth

900 MHzJAS

10 MHz‐Bandwidth

1800 MHzTRUE

15 MHz‐Bandwidth

1800 MHzAIS

15 MHz‐Bandwidth

2100 MHzTOT

15 MHz‐Bandwidth

2100 MHzTRUE

15 MHz‐Bandwidth

2100 MHzAIS

15 MHz‐Bandwidth

2100 MHzDTAC

15 MHz‐Bandwidth

1800 MHz (4G)CAT

20 MHz‐Bandwidth

1800 MHzDTAC

25 MHz‐BTO

BTO ends 2018

2300 MHzTOT 4G

64 MHz‐Bandwidth

2600 MHzMCOT

48 MHz‐Bandwidth

2600 MHzPRD

24 MHz‐Bandwidth

License ends 2025

License ends 2027

License ends 2027

License ends 2027

License ends 2033

License ends 2033

License ends 2030

License ends 2030

License ends 2018

2100 MHzMojo3G | iKool

MVNOs = No Spectrum

850 MHzTESCO, i-mobile, CTH

MVNOs = No Spectrum

2100 MHz

AISMVNO = No Spectrum

1800 MHz

DTACMVNO = No Spectrum

2300 MHzAIS

MVNO = No Spectrum

License ends 2025

1500 MHzTOT

35 MHz‐Bandwidth

1500 MHzCHEVRON

28 MHz‐Bandwidth

850 MHz (4G)CAT

15 MHz‐Bandwidth

850 MHzDTAC

10 MHz‐BTO Ends 2018BTO ends 2018

License ends 2025

850 MHz TRUE | 168 | NTT

MVNO = No Spectrum

2300 MHzMVNE/IoT/MVNOs

MVNO = No Spectrum

Possible MVNO’s 2016

Possible MVNO 2016

Possible MVNO 2016

Possible MVNO 2016

Possible MVNO’s 2016

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1800 MHzAIS

15 MHz‐Bandwidth

2100 MHzTOT

15 MHz‐Bandwidth

2100 MHzAIS

15 MHz‐Bandwidth

2300 MHzTOT 4G

64 MHz‐Bandwidth

License ends 2025

License ends 2027License ends 2033

2100 MHzAIS

MVNO = No Spectrum

2300 MHzAIS

MVNO = No Spectrum

License ends 2025

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Out of AIS's 37.8 million subscribers, 10.5 million use its 2G 900MHz services. Of those, 1 million are still in the 900MHz network and the remaining 9.5 million are on the Advanced Wireless Network (AWN) but roam with AIS's 2G network.

AIS is giving away 3G/4G smartphones to its 10.5 million 3G customers still using 2G phones and expect at least half its customers on the 900MHz network to migrate to its 3G network before end of February 2016

AIS could decide to allocate 5MHz out of the 15MHz on its new 1800MHz spectrum to serve its remaining (2G 900MHz) subscribers. AIS is also in talks to lease 2G base stations from TOT to serve its 2G customers

State telecom TOT Plc may select AIS to be its strategic partner in providing mobile broadband service on its network.

AIS will construct a mobile network for TOT, and in return be allowed to rent up to 80% of TOT's 2100MHz network until 2025.

The two parties are also in talks about potential partnerships on TOTs 2300MHz spectra

AIS plans to launch commercial 4G service on the 1800-MHz spectrum and 3G and 4G services on TOT's 2100-MHz spectrum.

"We're ready to promote adoption of 3G and 4G aggressively, but the focus remains on 3G"

Somchai Lertsutiwong, CEO AIS

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1800 MHz (4G)CAT

20 MHz‐Bandwidth

1800 MHzDTAC

25 MHz‐BTO

BTO ends 2018

License ends 2018

1800 MHz

DTACMVNO = No Spectrum

850 MHzTESCO, i-mobile, CTH

MVNOs = No Spectrum

850 MHz (4G)CAT

15 MHz‐Bandwidth

850 MHzDTAC

10 MHz‐BTO Ends 2018BTO ends 2018

License ends 2025

850 MHz TRUE | 168 | NTT

MVNO = No Spectrum

CAT Telecom has apparently been given the green light by the regulator NBTC to upgrade its existing 3G network on the 850MHz spectrum to 4G

True Move, through its subsidiary BFKT, will invest and handle the 4G network upgrade for CAT and in return be allowed to rent up to 80% of the state telecom's 850MHz network until 2025.

Col Sanpachai said CAT and True would have to modify the details of existing contracts including the network capacity use quota before seeking the CAT board's approval. CAT expect to launch the 4G service on the 850MHz network by the 3rd quarter of 2016.

However, a recent report by the State Audit Commission under the Office of the Auditor General into True/CAT’s controversial 850MHz 3G setup has identified at least THB 45,852 billion of damages as well as a number of un-accounted cell sites.

A committee had been set up to identify individuals at CAT responsible and further disciplinary action, civil lawsuits and criminal lawsuits may be taken.

Possible MVNO’s 2016

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CAT awarded its bandwidth on the 1800MHz to concession holders, including 50MHz to DTAC.

DTAC currently uses only 25MHz of that. CAT later allocated 5MHz of DTAC's idle 25MHz to the NBTC for auctioning, so DTAC now has 20MHz remaining of the idle bandwidth.

If approved by the cabinet CAT and DTAC could jointly upgrade the idle 20MHz bandwidth on the 1800MHz spectrum to provide 4G service using a deal similar to the True-BFKT-CAT model.

DTAC's failure to win a 900MHz license gives CAT more bargaining power in the partnership talks

Jasmine Mobile Broadband, new holder of a 900MHz license, has approached CAT on leasing 1,000 towers to offer cellular service.

900 MHzJAS

10 MHz‐Bandwidth

License ends 2030

"The upgrade should allow us to accommodate skyrocketing mobile data traffic and increase our revenue"

Col Sanpachai Huvanandana, President CAT Telecom

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2100 MHzDTAC

15 MHz‐Bandwidth

1800 MHz (4G)CAT

20 MHz‐Bandwidth

1800 MHzDTAC

25 MHz‐BTO

BTO ends 2018 License ends 2027

License ends 2018

1800 MHz

DTACMVNO = No Spectrum

850 MHzDTAC

10 MHz‐BTO Ends 2018BTO ends 2018

DTAC could become a MVNO on CAT’s 1800MHz

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Before the auctions the NBTC permitted DTAC to use 15 MHz on the 1800 MHz spectrum for 4G service, thereby increasing DTAC's 4G network bandwidth from 5 MHz on the 2100MHz to a combined 20 MHz

Being under a concession, expanding the 850MHz and 1800MHz networks, comes with a concession fee of 30% versus the 5% regulatory fee for a license. As the 850MHz and 1800MHz concessions expires in 2018, depreciation expenses will surge.

We therefore believe DTAC's primary concentration in 2016 will be on expanding its 2100MHz for nationwide coverage (currently covering Bangkok and 40 provinces) and instead boosting the 1800MHz capacity, mainly in urban areas.

DTAC said it will add 2,200 1800MHz 4G cell sites in major provinces by early 2016 and expand 4G via its 2100MHz spectrum into all provinces by midyear.

DTAC has 20MHz of idle bandwidth. If approved by the cabinet CAT and DTAC could jointly upgrade the idle 20MHz bandwidth on the 1800MHz spectrum to provide 4G service using a deal similar to the True-BFKT-CAT model.

DTAC plans to double its 4G subscriber base to 4.5 million end of 2016. Aggressive promotional campaigns and creative service bundling will be offering to attract customers.

If DTAC start to see customers churn to either True or AIS it could start a price war.

CEO, Lars Norling said DTAC would focus on digital ecosystems, mobile payments and machine-to-machine communications in 2016

Q3 2015 DTAC had a combined 23,553 3G-sites (2100MHz) and 3,446 4G-sites (1800MHz).

"You will see DTAC fight like you've never seen before"

Lars Norling, CEO DTAC

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1800 MHz (4G)CAT

20 MHz‐Bandwidth

License ends 2018

1800 MHz

JASMVNO = No Spectrum

JAS could become a MVNO on CAT’s 1800MHz

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Newcomer JAS Mobile Broadband’s 900MHz license, marks the entry of a 4th operator to the market.

Jasmine Mobile Broadband is a wholly owned subsidiary of Jasmine International Plc (JAS).

The company is targeting 2 million subscribers in its first year, rising to 5 million subscribers in 3 years, by tapping into 2 million household, who are subscribers of JAS's flagship fixed broadband Internet service operator Triple T Broadband.

The company is aiming to capture AIS's 10 million users 2G users. It will not invest in its own 2G network, but will lease the 2G networks of state telecoms to provide 2G 900MHz service and has reached a preliminary deal with CAT Telecom to lease 1,000 telecom towers to provide its service.

It has also talked with TOT for tower rents but TOT’s dispute with AIS over tower ownership has stalled the negotiation progress.

JAS has lined up THB 75 billion from a consortium of banks led by Bangkok Bank, while the equipment vendor, China's Huawei Technologies have extended THB 25 billion in financing for equipment procurement.

JAS mobile project having 15,000 4G base stations in 2016, able of accommodating 10 million subscribers.

It will use its existing network of 3BB customer-service shops to support its 4G service and say it has trained staff to operate the service

JAS will not roam with its rivals but with TOT and CAT. Jasmine Mobile said it might have to resort to a pricing strategy from time to time but will not subsidize handsets

"Jasmine Mobile could acquire 2 million subscribers next year, enough to break even. It will turn a profit in the third year where it is expected to reach 5 million subscriber"

Pete Bodharamik, CEO of Jasmine International

UPDATE 22 MARCH 2016: JAS Mobile failed to meet the deadline and payment for the second slot of the 900MHz

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2100 MHzTOT

15 MHz‐Bandwidth

License ends 2025

2100 MHzMojo3G | iKool

MVNOs = No Spectrum

2100 MHz

AIS (or True)MVNO = No Spectrum

2300 MHzTOT 4G

64 MHz‐Bandwidth

2300 MHz

AISMVNO = No Spectrum

License ends 2025

450 MHzTOT

10 MHz‐Bandwidth

1500 MHzTOT

35 MHz‐Bandwidth

TOT could partner with a MVNE to utilize all its spectrum better

450/1500/2100/2300

TOT20% Bandwidth

2300 MHz

MVNE/IoT/MVNOsMVNO = No Spectrum

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NBTC gave TOT the green light to upgrade its existing unused 2400MHz spectrum to provide 4G service for 10 years. Saying it would help TOT create a new revenue stream to offset vanished concession revenue

AIS has approached TOT with a deal to construct a mobile network for TOT, and in return be allowed to rent up to 80% of TOT's 2100MHz network until 2025. This would effectively add TOT’s 15MHz of spectrum to AIS’ own 15MHz and allow TOT’s small handful of customers to roam onto AIS. TOT has 5,400 base stations to AIS’s 25,000 on 2100MHz.

True is interested in leasing TOT's infrastructure to provide 900MHz service. Similarly to AIS, True is also interested to be TOT's partner to offer 3G service on TOT's 2100MHz spectrum.

We expect TOT to sign an agreement with a MVNE platform provider to maximize the utilization of its spectrum resources to improve revenue via new service providers, MVNOs and Internet of Things in relation to the governments digital economy project.

"TOT will have the right to use the 2400 MHz spectrum to operate wireless broadband service until 2025 without an operating license"

Takorn Tantasith, Secretary-general NBTC

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900 MHzTRUE

10 MHz‐Bandwidth

1800 MHzTRUE

15 MHz‐Bandwidth

2100 MHzTRUE

15 MHz‐Bandwidth

License ends 2027License ends 2033License ends 2030

850 MHzCAT

15 MHz‐Bandwidth

License ends 2025

850 MHzTRUE

MVNO = No Spectrum

• TRUE will allocate 2.5MHz on its 900MHz for 2G, • 850MHz and 2100MHz will be used for 3G • 32.5MHz on the 900MHz, 1800MHz and 2100MHz will be allocated for 4G

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"True now has a 20% market share. We set a target to increase it to 34% over the next five years"

Suphachai Chearavanont , CEO of TRUE

TRUE is second only to TOT regarding most bandwidth in Thailand, and it has the best spectrum mix of high and low band between all operators. TRUE will use this opportunity to move ahead of DTAC and compete with AIS for first place. However it comes with a risk, as DTACs customers might not churn to TRUE but instead to AIS.

Winning a 900MHz license gives TRUE the opportunity to gain a quick share in the large 2G market, if it can manage to setup the 2G before the competition

True is interested in leasing TOT's infrastructure to provide 900MHz service. Similarly it is also interested to be TOT's partner to offer 3G service on TOT's 2100MHz

2100 MHzTOT

15 MHz‐Bandwidth

License ends 2025

2100 MHzTRUE or AIS

MVNO = No Spectrum

A report by the State Audit Commission under the Office of the Auditor General into True/CAT’s controversial 850MHz 3G setup could become issues for TRUE later in 2016.

As telephony moves from voice to demand of high speed data, TRUE stands very solid, not only in regards of bandwidth and spectrum mix but also able to provide solid bundle offers with the other subsidies under the TRUE umbrella.

Once its spectrum and bandwidth has been allocated to 2G, 3G and 4G - TRUE could open up for MVNOs to maximize revenue and get to its target of 34% market share faster.

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6 MVNO’S OPERATING ON CAT AND TOT 0 MVNO’S LAUNCHED ON AIS,

DTAC, AND TRUE IN 3 YEARS

900 MHzTRUE

0 MVNOs

900 MHzJAS

0 MVNOs

1800 MHzTRUE

0 MVNOs

1800 MHzAIS

0 MVNOs

2100 MHzTRUE

0 MVNOs

2100 MHzAIS

0 MVNOs

2100 MHzDTAC

0 MVNOs

Must provide 10% capacity to MVNO

Must provide 10% capacity to MVNO

Must provide 10% capacity to MVNO

Must provide 10% capacity to MVNO

Must provide 10% capacity to MVNO

Must provide 10% capacity to MVNO

Must provide 10% capacity to MVNO

HOST OPERATOR HOST OPERATOR

MVNO’s MVNO’s

2100 MHzTOT

15 MHz‐Bandwidth

850 MHzCAT

15 MHz‐Bandwidth

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Despite the license terms stating the license holder has to provide min. 10% capacity to MVNOs, the operators have avoided MVNOs for more than 3 years

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1800MHz 80%900MHz 80%2100MHz TOT 90%2100MHz 70%

The NBTC has issued 36 MVNO licenses so far since the introduction of MVNOs in Thailand 6 years ago. However only 6 MVNOs have launched, with no one showing promising signs so far. Combined with TOT and CAT’s own customers, the MVNOs have only managed to obtain < 100,000 subscribers

MVNOs are intended to support innovation, bridge digital divide, and contribute to the growth in the ICT sector to ensure the achievement of the broader industry and national economic objectives

The reluctance and missing efforts of the telecom network operators to negotiate and launch MVNOs, represents a failure in normal market forces, which warrants intervention from the NBTC.

Currently the telecom network operators act as gatekeepers to the essential radio network access needed by MVNOs. Where we would anticipate it is the NBTC, which should retain the gatekeeper role, and prevent the operators exercising such power in the market

“2016 will see the operators bring in MVNOs on their networks as partners in their battle to gain market share and reduce network churn"

Allan Rasmussen, Managing Director Yozzo

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TOT 64 MHz

2300 MHz 2400 MHz

2300 MHz (*TDD-LTE)

In 2010 MCOT, agreed to let Playwork use the band to offer a pay-TV and wireless broadband service for 15 years. It also signed a contract with CAT Telecom to provide the network for the service. The now defunct, National Telecommunications Commission (NTC) declined to permit Playwork to test the service, since the spectrum was allocated for telecom purposes, not broadcasting.

MCOT has agreed to return its unused 60 MHz of bandwidth out of 144 MHz on the 2600 MHz spectrum. The state-run broadcaster will receive THB 100 million in compensation. NBTC told Bangkok Post the sum of THB 100 million in compensation had been calculated on the potential revenue MCOT expected to gain during the concession period.

The Public Relations Department (PRD), has taken the NBTC to the Central Administrative Court for reclaiming its spectrum for reallocation.

MCOT 48 MHzExpires in 2015

PRD

2500 MHz 2608 MHz

2600 MHz (*TDD-LTE & FDD-LTE)

2536 MHz 2584 MHz 2592 MHz

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The government has agreed with the digital economy panel's resolution to set aside other telecommunications spectra for 4G. Some portions of the 2300 MHz and 2600 MHz spectra may be options.

The ICT Ministry and TOT are studying the possibility of bringing the unused portion of TOT's 2300 MHz spectrum up for auction in order to increase the amount of bandwidth

MCOT Plc and the Public Relations Department (PRD) holds 128 MHz and 26 MHz, respectively, of the 2600 MHz spectrum. MCOT earlier allowed IBC to use the band for multichannel multipoint distribution service (MMDS) to provide a pay-TV service until 2009.

“We expect to see the utilization of these spectrums soon as Thailand moves towards enabling Internet of Things (IoT) and service related to the digital economy program"

Allan Rasmussen, Managing Director Yozzo

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Yozzo is a Telecom Consulting firm, specializing in Information and Communications Technology (ICT).

What we do

We assist public and private sector clients in their decision making through market insights, experience and technical skills. Our clients includes: Governments, Telecom Regulators, Telecom operators, MVNO’s, Device manufacturers, Software & Service providers, Media and Broadcasting companies.

How we do it

We approach consultancy engagements from a commercial perspective, with the aim of adding significant value to your business by identifying and pursuing: growth opportunities, create products, services, and businesses that improve the efficiency, productivity, and profitability of your business.

Copyright © 2016 Yozzo Co.,Ltd. All Rights Reserved.

DISCLAIMER Some statements made in this material are forward-looking statements with the relevant assumptions, which are subject to various risks and uncertainties. These include statements with respect to corporate plans, strategies and beliefs and other statements that are not historical facts. These statements can be identified by the use of forward-looking terminology such as “may”, “will”, “expect”, “anticipate”, “intend”, “estimate”, “continue” “plan” or other similar words. The statements are based on our assumptions and beliefs in light of the information currently available to us. These assumptions involve risks and uncertainties which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Please

note that the company and executives/staff do not control and cannot guarantee the relevance, timeliness, or accuracy of these statements.