Advanced Info Service Public Company Limited (ADVANC) Earnings Call Transcript & Summary

Good morning, everyone. Welcome to Quarter 3 Conference Call. First, let me introduce our management, our CEO, Khun Somchai.

Good morning.

Our Chief Consumer Business, Khun Pratthana.

[Foreign Language]

Our CFO, Khun Tee.

Morning.

And our Head of Investor Relations and Compliance, Khun Nattiya.

Morning.

And myself [indiscernible] will be briefing you the Q3 results and running the session. The session will begin with a short brief and going directly into Q&A. [Operator Instructions] Okay. So let me start with the overall highlight of this quarter. The climate in the third quarter that we see was the competition still remains intense. Consumer purchasing power was limited following the rising energy price and inflation. The economic recovery benefited tourist-related industries and growth remains sporadically in the affluent segment with higher purchasing power. The low-end segment was still having weak demand in the unlimited data offering, but we try to uplift ARPU with our quality gap. We attempt to remove the unlimited voice offering from the entry level package. Nonetheless, we placed more effort in encouraging 5G adoption through device bundling sales and offering more affordable 5G packages, which expanded to include selling 5G in the prepaid business. As a result, we grew 5G users to 5.5 million subscribers, a high growth of 41% Q-on-Q. On the postpaid side, also remained strong, increasing the revenue 5.1% year-on-year. This quarter, we also benefited from a new iPhone 14 launched earlier by one quarter. For the Broadband business, we expanded our service coverage to more suburb areas as well as efforts to reduce the churn rate from the strategy to offer more varieties of packages and services. This quarter ended with a net increase of 115,000 subscribers, a strong increase of 25% year-on-year. Competition-wise, operators still offer low price package plan of around THB 299 in the market, including us. However, we try to uplift the ARPU by limited selling the low price plan. Under Enterprise, we continue to grow with continuous demand for digital transformation in the businesses. We led the business driven by Cloud and also launched new platforms to help scale up. AIS 5G next-gen platform launched in the late quarter 2 was the first of its kind venue to develop 5G use cases in Thailand. And in this quarter, we also launched 5G AIS Cloud x, a smart cloud ecosystem as a result of international collaboration with Cisco to offer cloud security services for business. With the pressure from the fluctuation in the macroeconomic factors, cost of base utilities increased from 6.5% of cost of service in the last quarter towards 7.2% of cost of service in this quarter. However, we continuously executed cost optimization initiatives. On the next slide, we go into the Q3 performance. The core service revenue increased 1% year-on-year, driven by growth in Broadband and Enterprise business. A minor drop quarter-by-quarter was due to a Mobile business that was hit from the inflation that eroded purchasing power in the price-sensitive customers. Broadband and Enterprise also continued to perform well and drive our business growth. We will continue uplifting the ARPU using analytics to offer products tailored to customer needs and upsell, cross-sell mobile and content bundling packages. For Enterprise, we will continue to build the market with our capabilities in co-creating solutions with the customer, the key growth area would remain in CCIID products. EBITDA in the third quarter was at THB 22.09 billion, decreased 1.2% quarter-by-quarter from the network OpEx impact and decreased 3.5% year-on-year from higher marketing expense. Net profit was at THB 6.03 billion, decreased 5.4% year-on-year and 4.3% Q-on-Q. This was pressured by lower EBITDA in this quarter, partially offset by less unrealized foreign exchange loss and lower finance costs. And next, our guidance remains unchanged. We expect the business to grow with the seasonality trend in the fourth quarter. And this is the end of a short brief, and we will start the Q&A session.

[Operator Instructions] So the first would be Khun Wasu from Maybank.

So I have three questions. The first one is about prepaid net adds. So prior to this quarter, Advanced had seven quarters of positive net adds when it comes to prepaid subscribers. In this quarter, you lost some prepaid subscribers. What happened during the quarter? And what is your expectation of the fourth quarter in terms of the prepaid subscribers? So that's my first question. The second question is about the other service revenue or specifically nonmobile enterprise revenue. It dropped by 7% Q-on-Q. Has this revenue segment lost its growth momentum? That's my second question. The final question is about the triple TTTBB and JASIF deal. Could you give us some update on that front?

So for the first one, regarding prepaid net adds in quality. We are very much focused on shifting out or canceling out the low plan unlimited whereby it is adding a lot of subscribers, but definitely, it's not sustainable. So with that, so some customers are not taking that plan as a second SIM or third SIM. So we kind of get rid of those numbers. So you see the net adds has been negative on that particular prong. Moving ahead for quarter 4, we have seen kind of the stabilities and maybe a bit more adds from the tourist industry coming back to the countries. So the competition is still strong in quarter 4, but we do expect that may be a little further shrink in prepaid, a little bit.

On other service revenue, which is the Nonmobile Enterprise segment, basically, the revenue from quarter-to-quarter could be ups and down seasonally depending on the projects that we closed up. Previous quarter, we had two of the big projects closed in the quarter. And therefore, this quarter, you may see a slight dip in terms of the enterprise. But overall, we continue to see very strong demand. After we had collaboration with Microsoft since last year, we continued to execute very well in terms of selling Cloud products. And we continue to see very strong demand, particularly in the large Enterprise segment. So that will continue. Last question on TTTBB update. Basically, this is a very important issue for AIS. As you all know, that we proposed a change in the fee -- rental fee structure with JASIF, which hasn't been approved by the JASIF unitholders. The company will take very cautious consideration onto this, and we will update after we have the clear decision on this.

I have two follow-up questions. The first one is on the prepaid subscribers. You mentioned that shifting out or canceling out lower tier unlimited data plans, I'm assuming that the price has to be very low for you to cut them out. So what's the price threshold that you try to cancel the prepaid SIM cards in terms of ARPU, what was the price ratio? That's the first question. And the second question, on the nonmobile enterprise revenue. Do you still expect double-digit growth for 2023?

For the first one, you start to see the level of THB 150 has been -- will be faded out. Even though the market tried to address that we don't think it is reasonable to maintain that particular overly low price.

That means THB 150 is no longer in the market as of today?

There will be the slightly different just on that in terms of implementation. You start to see THB 150 value, we've gone down drastically.

On Enterprise growth, at this point, we're still planning for next year business plan. But based on the trajectory likely that we will still expect a double-digit growth in the Enterprise segment.

Next, Khun Weerapat from CLSA.

Weerapat from CLSA. I have two questions. The first question is about a follow-up question regarding to Khun Pratthana response about net addition of prepaid segment in the fourth quarter. Do you mean that AIS will continue to report net loss for prepaid in the fourth quarter given that you expect positive momentum from tourist segment, but you will continue to cancel out those low price plans in the fourth quarter? Do I understand correctly? And my second question is about 5G subscribers. As of third quarter, AIS had 5.5 million 5G subscribers or about 12% of total subscribers. But we still see the lower blended ARPU. So do you still believe that for 5G subscription plan, it still contribute 10% to 15% uplift in the ARPU when compared with the normal 4G plan?

For the first one, it's a lot to do with the very last 1.5 months of the tourism. If the tourism industry are coming back stronger. So we could potentially see something slightly different from what I explained earlier. But with the normal situation, I think the potential net negative for prepaid may come. Also, it's a part and parcel of the grassroot market economy as well. So that's the first one. . The second one is the 5G subscribers or 5G plan subscriptions of 5.5 million. Yes, it is give a positive uplift of the ARPU roughly around 15% to 18%. The reason why you see a bit of dilution in ARPU because there are mix of different type of subscriptions, inclusive of broadband mobile combined subscription that weighed down a bit of ARPU over there. But if you sum into detail, yes, 5G give us an uplift of the ARPU.

Next, we have Khun Piyush, HSBC.

Thanks for the presentation and the opportunity. Three questions for me, please. Can you update us on your kind of interpretation and assessment of remedies, which are imposed on DTAC to kind of merger proposal and how it impacts AIS competitive positioning and outlook? Secondly, can you talk a little bit more about the price competition, which is happening in both mobile, home broadband, the outlook for the same. Mobile ARPUs are actually all-time low now, right? I was looking at trends from all the way back to 2012, right? So yes, some more color on the competition would be helpful. And you have been -- thirdly, like you have mentioned, again, 5G ARPU uplift is 10% to 15%. Can you quantify what is the ARPU decline quarter-on-quarter and year-on-year, excluding 5G subscribers because that would have been even kind of much substantial. Like what is the underlying 4G ARPU now?

I think on the measurement of the NBTC for True and DTAC merger, it's just starting for control, True and DTAC as company in the future. However, today, True and DTAC are so different to NBTC because something still I'm not clear on the 12% of reduction of the price plan. In fact, NBTC really needs this company to levy only 12% of the existing price plan. However, they also came to NBTC should comply to the AIS also. This method is still unclear on the NBTC side, how they control the Pokphand in contract in the beginning. They need to control the incumbent or VPS operator, not related to AIS but still unclear. We just wait and see. I think only one issue or one measurement on the pricing that may relate to the AIS. The others will not relate to AIS like the separate branding and also some cannot and have to provide a VNO. I think on the 11 items, only one item is on the reduction 12% of pricing may be impact. But let's say, because I don't think NBTC will allow and accept that measurement.

So if I may follow up on this, they are expecting 12% price reduction on all kind of mobile and home broadband plans. Like what is the interpretation of that?

I don't think so. Because if I were to DTAC, I may have someone pricing to show up to NBTC that we have really low price tag according to the regulation or something. They cannot apply to offer.

For the second question, maybe down into two sub questions. The first one is price competition take down the ARPUs. In fact, it has been started as you track back in late 2019, whereby the fixed speed unlimited plan has been source of introduced. That taper down or even precious ARPU downwards very heavily. AIS has been able to source off, maintain and stabilize it at certain level, along with the launch of our 5G plan whereby it helps increase ARPU of 15% to 18% recently, even before that is 20% to the top-tier customers who migrate to 5G. But of course, the lower tier plan like 4G alone on 4G device, the ARPU has been diluted. But net-net, if you look at postpaid ARPU, taking out some of the plan I mentioned earlier as a bundling plan of broadband, we've been fairly stable in that front. But again, competition still continue on whether they can -- I mean, the market can sustain with that particular offering. I personally don't think it is because it's at the level I think that people are losing money investing with that such a very low plan.

Maybe on the last question. It's -- I think when you see ARPU continue to drop year-over-year. And we say that 5G ARPU actually higher than normal. So I think people start to think about what about -- then if we take out that 5G uplift effect, then the rest would be even worse. Actually, I think ARPU right now on average, it's, I think, hard to evaluate at the moment. Why? Because I think it -- the ARPU is being pressure or actually under, I think, three categories of SIMs. One is the SIMs that people buy with package. So I think that's a normal -- I would say, the normal SIM, right? If you look at just the ARPU and the normal SIMs, it actually stabilized this year already. But because we have the other two types of SIMs that trend in the market, one is what we call the IoT or solution SIMs. That's more of a kind of end-to-end machine-to-machine or its IoT SIMs. That SIMs have lower ARPU than normal anyway. On a per month basis, it's much lower. So I think that could be one part that kind of weighed down the average ARPU. Plus, I think over the last 2 to 3 years, FMC has become more important for the 2 or 3 operators that we are competing with. So those FMC type of SIMs, typically, we will assign a lower ARPU as well. So if you take out the two type of those effects, then what we see right now internally, ARPU will stabilize. And I think the low price plan that we talk about, we have seen this pricing level for the last 2 years anyway. It's not going lower than that. But I think what confuses people is the detail of all these type of things. So I think, going forward, we'll look at how to really show you the measurement on ARPU movement. But I think it kind of confused the market.

So can I clarify like in your second and third bucket of the SIMs, which you just mentioned, like what is the contribution of your subscribers, which you report in the second and third bucket? And how has that changed like year-on-year?

It's -- okay, we'll find a way to show you the impact. I don't have a number in my head for now.

It's grown quite -- it has quite a significant impact, though, but we'll look at the number and how we disclose to you guys and discuss this later.

Next, we have Khun Thitithep from KKPS.

Can you hear me?

Yes, go ahead.

Okay. I have three questions. Number one, in the MD&A, you did mention that the rising in patient reduced purchasing power of the prepaid customer. Now my understanding is that you have quite a high market share in the lowest end of the customer, people who live in the rural area. So if inflation persists, should we expect to see a multi-quarter of weak revenue going forward? That's the first question. Number two, if you see the revenue breakdown between postpaid and prepaid, you do well in terms of postpaid to go, postpaid revenue and prepaid revenue a bit high and it's vice versa for DTAC, okay? I'm wondering why is that? Is it because of a marketing campaign? Or is it because of the customer base of the two firms at the point? That's the second question. The third question you ramp up marketing expense in the third quarter, which makes sense because we have reopening, right? But then it looks like overall consumption is weaker than what we expect. So when that is the case, should we estimate you to revisit the spending plan going forward in the fourth quarter? Would you scale back? Or you think it's the time to build brand.

[indiscernible] for the first one, inflation and our mass customer share in the up country. I would say it's really, the answer would be, yes, it's really related to the capability to spend for the customer. It's hard to tell. If the economy for the grassroot would be worse than this, it would be very hard to grow there. But we hope that the economy won't be that bad. So it's a lot to be -- remain to be seen, I would say. The second one, comparing DTAC recently on the growth of prepaid and the net negative on postpaid, yes, our customer base are very different. For DTAC, announced a day, I believe the strong markets that they are in, hope I speak it right, just not detailed. But the migrants markets like Myanmar worker, who recently reentered to Thailand, that's the core strength of detect they could have had that incremental from that particular reasons coming in, but not the rest. For the third one, regarding marketing expense and response on the pickup of the revenue and consumptions. So in Q3, we have a very high hope of kind of bounce back in terms of economies, but unfortunately, wasn't due to many reasons. We will still continue on making sure that we keep our strength in brand network services and other related but at the same time, balancing the right spending at the right time. That's my answers.

And next, we have Hussaini UBS.

Three questions from me. First is that, say, in the earlier remarks, it was mentioned that AIS is to an extent, moving out of low-end prepaid offerings. I just wanted to understand that has your competitors followed suit on that side as well? And if the event, what will be AIS' strategy, just question number one. . Second is I see that there is a strong postpaid subscriber addition. Just wanted to understand what is driving that? Is it driven by you getting share from your postpaid customers of your competitor? Or is it more prepaid subscribers moving onto postpaid? And finally, on the cost side, particularly the utility and energy costs. I just wanted to get your outlook onto the fourth quarter and maybe going into next year. Just wanted to understand like -- is it still on the rising side? Or has it stabilized?

For the first one, sorry, it takes time because I couldn't catch clearly what was the first one. On the first one, the low plan, which is not giving the right balance of what we provide and what customer gets. We are very focused on giving the right values, variable to the customer with the proper plan. For this one, your question is what if the competitor as they're coming on pushing that. That remains to be seen. But for us, we are very much focused on serving customers with the right offering. So I would say we really segmentize where we can serve well. On the very last and whereby the network cannot be provided at that level, then we will not be able to. But that's remain to be seen how things go up. The second one on postpaid, where we are getting them from? Basically two sides. The first one is the prepaid upgrade to postpaid, whereby they pick up the new device and they upgrade plan to postpaid. And the second one came from the new registration to postpaid that could potentially coming from the competitors, that also could potentially coming from customer augment device, buying more connectivity. So that comes from two sources, probably half and half.

Hussaini, could you repeat your last question? We didn't hear quite clearly. You asked about something about outlook on ...

So the utility and energy cost is on the rise. So just wanted to understand the outlook for fourth quarter and going forward? Is it still on the rising trend? Or has it stabilized?

Okay. I think on the pricing itself, is it still on the rising trend you think? What we try to do is we try to manage the consumption. So if you look at the pricing increase from last year, I think early on this year, the price increase was about 10% now up to 28% with the last increase of FTE. So if you compare quarter-to-quarter, definitely, if the pricing is still on the rising trend. But what we try to do is we try to curb the demand on our side. So we have initiated a few measurements -- a few measures to manage down the consumption. So let's see whether it can -- the consumption management will have enough effect to compensate for the price increase or not. But we are trying the best we can because we know that at the moment, we cannot pass on the increase in price to the consumer just yet. So we'll see. I think we also try to manage other costs to offset this as well. So hopefully, we will get a good result from this.

We have Khun Wasu for follow-up questions from Maybank.

My question is about the competition strategy in 2023. This question is for Khun Tee. So how does advance plan to capture more market share next year, assuming that DTAC and True successfully merged. I'm asking this question mainly because late last year and early this year. Khun Tee has mentioned a few times that DTAC and True merging together would be a good opportunity for Advanced to steal market share because during the first year, there will be busy with the restructuring and network integration process. And during those processes, it will leave some opportunities for Advanced to gain market share because the service quality in terms of network and after sales service could be hindered quite a bit for the new co. So I would like to know like how do you plan to capture more market share next year?

If I tell you then the competitor will also know the -- Okay. I think in -- maybe in chart maybe related to the question asked earlier as well. We will be selective in the segment that we will fight in. I think you can starting to see that we maybe stave off from the lower end of the market. And a lot of time, the lower-cost package, the people, the users from that actually use more traffic, more data from our network. So I think what we try to do is we try to trade that off with a higher value more than normal usage level type of consumers, which I think they want better quality rather than cheap price and maybe lower quality on network. So we try to be more selective and could you explain a bit more. So we prepare, I think a few strategies to be attractive to certain segments so that we can actually target them better. In the past, it may be about more broad market mainstream, but going forward, it will be more strategic, more targeted, and we pick the right segment with the right profitability. So hopefully, overall, it will bring us more profit as well.

As Khun Tee mentioned, I'd like to add a very important point when we provide product and service for the customer. After all, Internet is very essential for probably most of the customers at this point of time. The quality is the key when it comes to end-customer product and service offering. So we would be super focused on what we provide for customer. Whether True and DTAC would do good or bad is hard to tell before we haven't seen them doing it yet, but we will be very focused on delivering the quality product and service for customers and we do hope that customer will pick up us more because of these top-quality product and services.

And last set of question from Khun Arthur from Citi.

Two questions, please. Firstly, on 5G, I know this has been asked multiple times. Just to clarify this. So if you move the discussion away from ARPU and instead focus on total revenues, because I do understand if you have more ARPU on IoT and so forth, which then skews the ARPU number. But you also mentioned that competition has been relatively, I think, stable, at the same time, 5G spending is higher. So why aren't you seeing faster total mobile revenue growth, if that's the case? So if I were to interpret this, without 5G, your revenue sort of affected even more. So people are just spending less. Is that the correct way to look at this? And second question I had is with regard to Hussaini's earlier question on pricing. I understand -- Am I to understand if competitors have not yet followed on your strategy to eliminate the low price plans on the THB 150 -- at the THB 150 level?

On the 5G, if I take it correctly, whether or not why it wouldn't change the trajectory of 5G to create such a big growth, even though it kind of adding the add-on ARPU, the factor number one that we are focusing on is to bring more 5G device to the markets. The second half of this year, recently, we do expect that 5G device will come more. But because of the supply chain issue, there's still a little bit slower than what we hoped for, but it's getting slightly better over time. And next year, the rolling forecast of 5G device will be probably 2x of this year. So that's a source of coming a little bit slower. So we should have had more numbers of IoT devices in the market, but it's slightly lower. Without 5G, I would say, yes, the trajectory will be worse than this because of pure price competitions, whereby market try to offer a very low price and also low qualities, I would say. That's for 5G. The second one...

Sorry, just to clarify that. So the market is basically bifurcated, the 5G pricing has gone up, but that's been more than offset by the reduction in LTE pricing. So that's what's happening in the market?

You can say that. The -- when we look at pure price of the low end plan of THB 150, THB 200 , it is really low.

I think what -- maybe another factor is because the lower price plan has been in the market for quite some time now. So there's more people moving into that bracket. Even though I think the low-end pricing hasn't gone down, but because more people move down. Two factors driving that. One is economy. I think for the past 2 years, the economy has been bad, so people are looking for certain types of saving. . And secondly, I think we also try to push for, I think, certain numbers in certain areas. So I think that's -- that drives the larger portion of the low end. But that's why I think now we all feel that with the usage that's coming in with the low-price plan, maybe it's better off trading with the higher-ARPU consumers that use more or less kind of in a normal range. So that's what we hope that overall, it will slow down the dilution of ARPU and also hopefully give a way to ARPU rise together with the better economy next year.

On the second one regarding the competition, whether they would follow or not, we cannot tell it's actually a lot to do with their strategies or whether they want to provide the low-quality product at the end because of the network congestion and everything with a very low price plan, gaining customer, but without our quality of use. I think it's a lot to do with them. For us, as I mentioned earlier, we will be very focused on delivering a quality product for customers.

We have Khun Piyush again for follow-up questions.

Could you quantify what percentage of your customers are on unlimited data plan? And what percentage are on these low-priced plans which you're trying to kind of phase out? That's first. Secondly, can you quantify like what proportion of your total cost is energy cost? And what are the other cost inflationary pressures, which you are witnessing at the moment? And lastly, how does kind of -- what is the impact of kind of currency depreciation and this cost inflation on CapEx? And how does that impact the outlook of capital expenditure next year in 2023?

The range would be around 20% to 30%, depending on the time.

Sorry, this is for the unlimited? Sorry, I didn't hear it properly. .

Yes, sorry about that. The range would be around 30% for unlimited low plan.

30% of total customers.

Energy costs, if you look at the total cost of service, the energy cost at the third quarter was around 7% of the cost of service.

Yes. I think right now, the -- if you look at the depreciation of the network, we try to manage it so that it has neutral effect year-over-year. I think that's what we aim at. But given a big part of our CapEx expenditure is quoted in USD. So we need to manage that with the fluctuation of FX as well. I think so far, for the past year, what really driven the increase in what we call the fixed cost is the spectrum. So we acquired more spectrum in 5G. But on the network side, even though we expand it, we try to manage it so that it doesn't give us -- or cause us more pressure on cost. However over the last, I think, 18 months and we had a big rise in the FX. So that's something we need to manage over the long run as well. But on the network side, we'll try to make it neutral.

And Khun Hussaini for follow-up questions.

Just a broader question on fixed broadband, where the ARPUs in the lower-end plan, which is sub-300 is one of the lowest in ASEAN. So just wanted to understand that at THB 300, what kind of margins are you generating? Is it a profitable proposition? And what are different options are there to kind of -- to kind of provide low ARPU if broadband proposition in the market -- means given the pervasive facing network of AIS? Has it opened a room for 5G FWA as well for AIS to consider?

I don't know whether we kind of disclose the margin for this.

Let me put it this way. Fixed broadband customers require a certain level of installation in the beginning, right? So in general, it depends on how long the customer stay with us. Whether it's a low end plant or high-end plan, even though it's high-end plan, if the customer stay in the short term, the profitability would be limited. So for lower end plan, basically, we need customers to stay longer.

Yes. You can see some of those plans 24 months when it come to a low plan. It could compensate us as you know. The second one regarding the FWA, essentially, the wireless broadband in a certain extent, it can be as gap fillers to the broadband needs and many of the customers start using it. But whether or not it's in the mass scale, the cost structure of FWA at this point of time may not give us that way.

We have the last one, Khun Utkarsh. Can you please let us know the company name as well.

This is Utkarsh from [indiscernible]. Just a few questions to follow up from earlier questions as well. So firstly, in terms of the merger impact, right? So from what I understand on the ground like over the last 6 to 12 months, at least there has been some movement in DTAC who already starting to work in that direction. And keeping out conversations on subscribers and ARPUs because there are intricacies there. If I just look at the service revenue market share on the mobile side, it does seem like that you are not gaining much, rather somewhat losing versus your weaker competitor who doesn't have a 5G network offering. Why do you think that is the case? And how does that change when the merger actually proceeds? And the second question that I had was similar to the last one in terms of the bundling ARPUs. Given that you guys are moving more on the fixed side and you bundle more and more data plans. How dilutive would bundle ARPUs be versus your overall ARPUs? Those are my 2 questions.

For the first one regarding the DTAC impact, maybe I addressed your second part of this in terms of the market share. If we look at DTAC right now, on Q3, you see the net negative on postpaid. So on the top front, I think we are growing versus they are shrinking. But on the prepaid side, as mentioned, some of the segments we choose not to gain. We look at it overall value rather than just the market share. So I think that's the answer. But how we move forward in terms of when the True and DTAC mergers remain to be seen, where they are focusing on. For us, again, we're focusing on the value segment serving customer with quality products.

Your second question is on the bundling ARPU. FMC is one of the strategy that we had executed. Obviously, right now, around 80% of our fixed broadband subscriber is also our mobile base. In general, we would say that customers who already -- who are existing AIS Mobile will receive roughly 10% discount on their broadband package versus the normal retail package. However, doing this, we also expect to lower overall subscriber acquisition cost whether on the broadband and on the mobile. Basically, we'll be able to retain this customer and generate incremental value per subscriber better.

Yes. Maybe just to add on, I think people try to gauge what the bundling effect would be to us. I think maybe it's tough to say when it will happen exactly. But if we try to do this, what we hope to gain this one, I think, revenue growth because we can expand to acquire more of the people who are not using AIS SIMs. However, secondly, in the end, it's of course to help us reduce churn and also lower acquisition costs, as Khun Nattiya mentioned. So hopefully, having achieved either one of those FX, in the end, it will increase the profitability. So I think that would be my focus. Maybe it's tough to say whether the overall ARPU, dilute or not dilute. But in the end, it should have positive effect to our profit.

Just on the first one, just following up. I was more referring to the revenue market share, the service revenue market trend on the subscriber one. So just in terms of differential versus DTAC, any comments there, given that you're focusing more on the profitable subs?

The profitable would be the focus. The -- when it comes to profitability, as you may notice, the competitors' profitability has been gone down very drastically. Part and parcel of that, I believe, is related to the strategy they're pursuing.

And lastly, we have Khun [indiscernible] which wrote questions in the chat box. This is from [indiscernible]. There are three questions. The first one, your postpaid revenue has been growing nicely, likely increasing your postpaid revenue market share, but your prepaid revenue has been sliding down in which you put a blame on uneven economic recovery and unhealthy competition. Just wondering that if your prepaid revenue is an industry issue, why did prepaid revenue has been reversing your prepaid revenue trend. How can you reverse this prepaid revenue trend?

I think we have discussed slightly earlier regarding the customer segment we are focusing on. Some of the segment, for example, migrants whereby the high turnover, very low plan, negative profitabilities that we may not be super focused on. We've been selective on that, and DTAC may be focusing on that up to their strategies. But I think in terms of prepaid, again, we're focusing on delivering the good product and service for the customer. The economy play important roles in general. If economy kind of pick it up, we will see that one pickup as well as the rest of tourism when more tourists come into Thailand. This is a good percent change in terms of numbers.

And second question is on the guidance for 2022. It is kept unchanged, which implies a quite wide range of fourth quarter core revenue and EBITDA guidance. After passing October operation, do you think the full year operation will be the upper or lower range of your revenue and EBITDA guidance?

Yes. I think we give guidance in a range for a reason. So please not ask us to narrow down that range.

Okay. And last question, please update, first, 700 megahertz deal with NT. Second, the spectrum and tower rental charge to NT. Third, the partnership with SCB under AISCB. And fourth, the joint investment in Hyperscale data center. And The last one, the partnership situation with Rabbit-LINE Pay.

Okay. On the NBTC first -- I'm sorry, on NT. Regarding 700 megahertz and spectrum rental, as you know, whenever dealing with the SOE, it may take some time. As we know, currently, it still sits between the NESDB and the cabinet. So we are waiting to hear updates on that. On the rest, [indiscernible] RLP and JV, actually, no significant update at this point. On the data center JV, basically, we are still moving on with good progress in terms of seeking land location. The establishment is already there. So hopefully, sometime in the early of next year, we could see the establishment.

So this is the end of the Q&A session. We don't have any further questions. So thank you, everyone, for participating, and see you again next quarter. Thank you.

Thank you.

Thank you.

Thank you.

Thank you.