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

So good morning, everyone, and welcome to our first half of 2026 AIS Investor [Audio Gap] This is like a refreshing where usually you guys will go to our office and sit in a meeting room. But here, we take you all to our AIS shop at SIAM. So this is like a central location where you will hear more story about this later. So participant in Zoom, please choose English room should you want to listen in English. And those that want to listen in Thai, please do so with the Thai room. We have translator ready online for you guys if you want to listen to any languages. And the presentation is ready, and you can download in the link to our website. So today, we have the honor of several executives who are here with us. First, our CEO, Khun Pratthana Leelapanang. And next, we have Khun Tee Seeumpornroj, our Deputy CEO and CFO. We have Khun Lertchai Kodsup, who is our Chief Mobile Business Officer. Then we have Khun Yordchai Asawathongchai, our Chief Broadband Business Officer; then Khun Phupa Akavipat, our Chief Enterprise Business Officer; and our famous Chief Retail Business Officer, Khun Prapat Siangjan. We also have Khun Nattiya, Head of Corporate Strategy and Planning with us at the back, if you guys can turn around. Myself, Somruetai, will be facilitating this session. And the agenda for today is empowering the next phase of growth. Earlier in the year, we talked about our next phase of growth where we outlined AIS 2028. So this time, our CEO and CFO will help explain what has been our progress throughout the first half of the year and that we are still aligned with our vision. So let us warm welcome our CEO onto the stage.

[Foreign Language] everyone. I hope that you from online can hear me well. Thank you very much for coming today. And for ones who stay here, arrive here, you'll probably get a slightly different feelings. For me, I'm not so sure whether you've been here before, but AIS in SIAM's square area has been continuous on developing as the whole consumers continue on developing as well. For past probably a few quarters, it has been a hard time. We have been going through the political conflict, geopolitical issues, war. We also face high rise in living cost and it still continue on. And also the sentiment has not been good. We have been reported to the market multiple times and definitely is still an uncertainties ahead is how things would play out for the second half of the year. But despite the fact that the market has been fragile, the demand continue on growing. When I talk about demand, it's actually demand for consumption, for data consumption for both mobile and broadband as well as the enterprise demand in consuming connectivities. And during this era, it's even go beyond just connectivity, go to cloud, go to AI and many more. AIS laid the plan so we can continue on create values. The important thing for us is to continue on create values. Our plan is very simple. There are 3 major components in our plan, of which we kind of put together and call it AIS pursuing for intelligent infrastructure. And these intelligent infrastructures really ripped into 3 simple areas. The first one is what we have been doing all along is [Audio Gap] networks. I often like to call it as a national digital infrastructures, this is comprising of mobile infrastructure, broadband infrastructure, [indiscernible] infrastructures into data centers and cloud infrastructures. So this is the digital infrastructure layers that we continue on expanding. The second layers, I call it intelligent platform. It's actually a platform that we are establishing to bring in more product and service for customers. That would include entertainment, smart homes, digital finance, cloud AI and many more. So that is the second layers. The third one we call our customer centricity layers, whereby later on, I will explain what we are pursuing. So those are 3 simple things that we put together and actually pursue for value creations even in the midst of fragile markets. Let me address a bit of the first one. For the first one, the infrastructure layers, we laid down mobile broadband and enterprise. We are making sure that we bring in the best-in-class, if not the best in the world, to build the infrastructures. At the end of the day, at this point in time, we serve more than half of the markets for both mobile and broadband to be exact maybe 51% to 53% of the market we are serving. We're talking about 53 million accounts or if not more. I mean, in fact -- yes, somewhere around there in combined. So that's the size and scale our network infrastructures serving. Mid of the year, we have been confirmed that this is another year, and we continue on to be proud and working hard to pursue getting this all the time that we have been awarded for another year of best mobile and broadband. So I'd like to emphasize a bit more on not the trophy, but dimensions that we continue on pursue as the best-in-class. The best mobile network, also best coverage, fastest, best mobile gaming. So this is a few examples of dimensions when we talk about best-in-class network. For broadband, continue on to be many more as well, the video experience, gaming and many more. So with that, we've given the example of how we want to pursue and making sure not only speeds that we deliver, not only the coverage we cover, but many other factors, of which we deliver the best experience for customers. So I think that's what I like to report, and we are proud that we continue on achieving that as another year. For mobile network, this is the year that we achieved the next level, we brought in the latest so-called 5G Advanced. The 5G Advanced is actually -- you can call it 5.5G in those days when we call 3.5, 4.5. This is more or less 5.5G. In industry term, it called 5G Advanced. The 5G Advanced would bring in higher upload and download speeds, for the uploads of which has now become a basic needs, not downloads alone, but uploads. The upload for 5.5G or 5G Advanced get double. The download, of course, is more as well, but about 50% faster speed in download with 5G Advanced. For many of us who don't know what 5G Advanced means, you're just thinking, it's a better 5G. Technology-wise, we combine multiple carriers, multiple spectrum. With the advance of the device technology, many phones you hold down already support 5G Advance. The iPhone, the Android, many of the model, talk about iPhone, maybe iPhone 14 up, it's all supported. So this is the first one, which is the mobile network, we continue on pursuing the best for customer. For broadband, now we already exceed 20 million homes passed as a coverage. We deliver now more than 1 gigabit. I think it's a few gigabits. Commercially, we made available of 2 gigabits packages for customer. We continue on making sure that the infrastructure of broadband has been top quality. And if there were a downtime, it would be for each of the customer to be fixed within 24 hours. So that's the basic broadband on expanding. With AIS Fibre plus 3BB, we continue to achieve more for customer. The enterprise infrastructure has been expanding a lot as well. So I'd like to bring in the first one of the enterprise infrastructures of which I talked about it for a bit of time earlier. This infrastructure in the enterprise is newly established in Thailand. I call it sovereign cloud, sovereign AI infrastructures. For any enterprise, especially for the government state enterprise and in large company, at the end of the day, we all would need data residencies. We all would need local processing. You will continue on to see how things rise. But for AIS, we went on prepare and get it ready as an enterprise infrastructures. I call it sovereign cloud, sovereign AI. The CloudX product that we have been launching is already sovereign in countries, means that the whole cloud with the hyperscale stacks is in Thailand. The whole processing in Thailand is all under the control of Thailand legislations. It's also under control of the whole operator in Thailand. And the data and the processing will never leave Thailand. So this is the infrastructure as we prepare and get ready for the growing of the demand. Not only that, the connectivities between data centers cloud get connected to hyper connectivities. The cloud network will get connected with super high speed, if not a terabyte speeds, not only just in Thailand connect among each other, but also connecting to outside Thailand, especially to go down south to Singapore, go up north to China and many more. The way we get connected and we as the infrastructure provider, making sure that cloud network connectivity is ready to expand. More than that, with the fast pacing of technology, important information and upcoming quantum computing, it's actually give a lot of opportunity, but also a question whether or not the current encryptions would hold the securities. For the next few years, you will hear that quantum can decrypt -- quantum computing can decrypt the current encryptions that everyone use in a matter of what, maybe an hour or less, instead of 100 years that we used to claim that our encryption will take the normal computer, many, many years to decrypt. We have established so-called quantum-safe transportation connectivity network. Between data centers, between enterprise and cloud, we get -- could get connect through quantum-safe network. And if not mistaken, it's probably the first one around in Thailand for sure and maybe in the region as well. So we get it ready in the way to serve the customer who have in demand and upcoming demand with the data security encryptions. For the large network, for consumer and everyone, the network itself, especially on the consumer side, will be upgraded and enhanced with the protections. This protection we call Safe Network, include the protections of voice call, which could be a scam call. It includes the SMS of which it could be a scam SMS. It also protect the websites of which it could be a scam web. And these safe network will be automatically work 24/7, automatically protect customer. The second half of this year will bring up all of this for customer. We do hope the infrastructures we have get enhanced and at the end, protect customer. With the network we have, it's huge. We brought in -- I think many of us have heard about it. You think about it as AI automatic network, whereby it try to fix itself, monitor itself. We brought up the level of autonomous network. I think at the regional level, we probably keep leading autonomous network. What it means is, it's self monitoring, automatically handle the issue as many as possible, handle customer inquiry, complaint, handling the network issues, fixing it as it goes. At the current level, we are about 3.2 going to 4.0 level of autonomous network. And this is to ensure that the availability and quality of network is at best as possible. This is underlying the network infrastructures that we are building all along. With all together, with the network infrastructure, the first layers, I'm talking about, we're thankful and proud that we are selected as a part of a strategic partnership to build the smart city in Muang Thong Thani. In Muang Thong Thani, a bit northern part of Thailand, they host more than 200,000 residents. And each month have more than 1 million people passing by and stay there as well. So a huge properties with many people with fundamental network infrastructure, as I mentioned, we're proud that we're part of Muang Thong Thani to help build so-called smart city for the futures. I have a short video maybe to play for ones who have not seen it, and I'd like to illustrate it in the video. [Presentation]

This is a short video illustrated what we work together with Muang Thong try to achieve. So we hope for the next 2 quarters, the infrastructure in Muang Thong Thani will get up to speed, leading the industry there, providing the facilities, the fundamental need to build the smart city for Muang Thong Thani. The second layers, I call it the intelligent platform on top of the network infrastructures. I'd like to address the first few. The first one is entertainment platforms, we can call it video streaming or entertainment. Our entertainment platform has been continue on expanding. So just a few logos just illustrations of partners, contents, work together with AIS to bring the best for customer. Once again, entertainment platform are built -- is built so we can incorporate, enable multiple content as many as possible, bring it to customer in the best experience manners. I got a short video to give you an illustration of what content that we've been offering and continue on expanding. [Presentation]

It's just short illustrations of what we've been put together on the platform that we are expanding, bringing for customer. As you can see here, we bring in as many as possible, answering the needs of as multiple segments as possible for both entertainment international, local entertainment, international sport, local sport news and many more, which we believe the platform we are expanding will continue on supporting partners to bring in even more than now. Recently, we launched the latest package of which we believe it will help expand the reaches of premium content to as many as possible of Thai. We launched package name PLAY ALL. The PLAY ALL actually what it means that you can play, it's all. And everything in there with the right -- what we believe is the right price point to the right level in Thailand. And for the first time, not only AIS mobile and broadband customers can apply for it. I hope some of you are not using our competitors, but if you do, you can also apply for it. But maybe slightly different price. [indiscernible] have you been using AIS? You're using AIS. You get THB 199. So basically, for the first time, we make it available for the whole nation regardless of mobile operator or broadband operator you're using. Customers can enjoy PLAY ALL at home anywhere, include so many content, channels in one package, so-called PLAY ALL. And upcoming next month, I really like to invite everyone, maybe this is probably for the first time in Thailand in the mega size entertainment concerts. So together with probably the legendary Asanee-Wasan. He will be having a very last concert on upcoming next month. And on behalf of AIS, I'd like to extend the invitation for everyone here to watch it live for the very last concert of Asanee-Wasan on your mobile, on your broadband. I put THB 500 doesn't mean we're going to charge you. We invite you to watch it without any charge. So we like to extend the invitations. But for this one, unfortunately, we did not make available for non-AIS mobile nor broadband. So you have to have. People, so do you want to come for our team? Basically, we like to invite everyone here, the IR team will coordinate to get your numbers or broadband numbers. So we provisioned the very last concert of Asanee-Wasan, you can watch it anywhere, if you're roaming anywhere in the world as well. But for one who's not in Thailand, you probably need a SIM from Thailand for the roaming in order to watch it. So we like to invite for that and this is part of the glimpse of the platform we are expanding. And right now, it's for the first time in large-scale, on-demand concerts in real time in the large scale. Secondly, in platform that I'd like to address is expanding our financial platform, financial service platform. Clicx Bank have launched for the past 2 months, and it is now on the next steps to provide lending, and it will serve as a new facilities for Thai customer. We believe that provide financial services in collaboration with partners. In Clicx Bank, we partner with KTB OR, bring the best of intelligence and data to uplift probably the financial service. So with the telecom data, with banking data as well as the retail data, with AI analytics, we believe that we can improve the cost to serve, many of us here in the banking sector, so you know what is the cost structure. But with the data in combined, we believe we can improve that. And if you have not experienced with them, please try. It's only available for Thai, unfortunately, not for one who hold a passport. This will expand the reach of services for us on the second platform, which is the financial platform. Lastly, on the platform is cloud and AI platform. The service is not only limited to entertainment, financial, but many more could come. We established the cloud management platform, so enterprise customer can actually hop in upgrade uplift to the cloud. And this cloud once again incorporate the sovereign cloud here and also incorporate the international cloud. It actually means that the gateway to uplift to cloud and [ messages ] has been now provided and made available from AIS, so I call it cloud managed platform. So many enterprise would like to use a hybrid cloud, multiple cloud, so we are eager and ready to support the enterprise to go out there or cloud type of service like that. The last piece of our strategies or the intelligent infrastructure I mentioned about is customer centricity. The first one in customer centricity is the hyperpersonalization. It's a fancy word. It actually means that we want to make sure we take care of customers as individuals. You can call it segment of one. At this point in time, with advanced technology data, we actually could do that. Moving from segment to segment of one, moving from the product into [Audio Gap] We're now providing multiple products and services. We now want to make sure that we uplift in the sense that we understand individual preference. We hope to understand what would be a future preference and needs of each of the customer. We hope to bring in more and more product and service in combined not only by ourselves but through the partnership in the ecosystem, through the platform we are expanding. So we can bring for customer, we call it right product, right offering, right time, right message, and right channel when it comes to approaching customer. So this is the center of the whole, what I call it, customer centricity. We want to make sure that we take care of customer individually. Across our service touch point for the past quarter, we have also upgrades or uplift. Now if you want any product and service, which may not be available at that store customer visited we will immediately activate the O2O. So any product and service customer needs and is not available here, the delivery in Bangkok [ Krung ] will make it within 3 hours, get delivered. The whole Thailand, you get it in a day. So we continue on striving the best to serve customer or if you don't want to come to the store, you actually can order any time from online and from the device. So this is the service platform we continue on uplifting in the mix so-called omnichannel experience. A few last one is here is one of example that we continue on addressing the engagement size with customer, not every time they want to sell things, but we create the engagement through many channels. AIS SIAM is one of the place that we continue on, striving on engagement in various segments. Here, a lot to do with Gen Z. I want to call myself Gen Z as well. So this location, this premise is not hosting a lot of sales, but a lot to do with engagement. Content creation is upstair as well. The second floor, if you have time to go up and see, it's a place whereby you sit with friends, enjoying digital services or even games, entertainment and all that. We hope that with our advancement in network infrastructure as well as the service platform, we can bring these many of the experience to multiple groups, and this is one example here. The last one I'd like to illustrate is for the business and enterprise. We together in development is Ministry of Higher Education, Science Research and Innovations all in Thai words, [Foreign Language]. We developed and about to launch so-called Thailand AI Readiness Index [Audio Gap] centricities. We do believe that we exist because we generate value for customers, and we will continue on to create value for customers. That would be my section in brief. Thank you very much.

So next, we have Khun Tee. He will let us know on how we are creating sustainable value. So welcome Khun Tee on stage.

Good morning, everyone. It's a bit strange feeling for me to say talk something very serious at this [Audio Gap] store. Normally, we come here or I come here for launch party or football watching party or movie night. So it's a bit strange that, oh, this morning is so serious. So hopefully, the questions after this won't be that serious. Okay, let's get into this. I think as Khun [ Ju ] mentioned, now we are at the stage that we command more than 50% market share in both mobile and broadband. And I think we target to grow more aggressively on enterprise as well. So the next big agenda is how do we really make it sustainable and also create more value for the company. I think the team came up with 4 big tasks for us or for me. One is to make sure we can protect the revenue market share that we gained over the last few years. Second, we also have to optimize our internal operation as well as all the resources that we put in investment as well, make sure that we have sufficient cash flow and profit and also to pay dividend to the shareholders. We also need to create more value. I think we can't do the business the same old way anymore. So now I think like you saw what Khun Ju mentioned, we're trying to expand into a lot of new services and also try to change the customer experience so that we can create more value to them. And lastly, hopefully, we can multiply. We can grow faster than just the normal telco business growth. First one, I want to let you know that we actually focus a lot on the quality subscribers, right? We don't want just to gain subs without quality because that's going to create a problem for us later. As you see, I think we grow roughly 2% to 3% on the sub growth, but we can grow much more on revenue and partly because we do select and we try to screen quality subs. To me, that's the most important. Otherwise, you can be misled by the growth of the subs to think that we can actually grow or we gain more market share that way. But in the end, it's really the money and the revenue per subscriber that we are looking forward to gain. We can assure you that we have price discipline as a sole market leader, I think that's our job to make sure that this industry can grow productively, right? And operation will be key. We gain a lot more customers. We bring them into a network. So we need to be able to measure them, give them good service. We're going through a lot of -- later on, we'll talk integration on the broadband side. There could be some hiccups or there have been some hiccups this year. But hopefully, when the integration finished, we can actually give better service to the customer than before. Optimize, that's one of the key objectives since late of last year because we know that this year, we see the trend cost probably going to go up a lot. So we did secure a lot of equipment and devices at -- that's why with the cost inflation this year cost increase, we can still provide you with more profit, right? So that part we did plan ahead. We try to get rid of some uncertainties. We want to be able to have secure supply to make sure that there's no hiccup to our operation. Workforce optimization is a second key agenda that we're going to be working through this year, next year and the year after, right? With integration, with AI, I think there's a lot of workforce productivity increase that we can target. I know that analysts later on will ask how does that turn into numbers and all that. We can provide you some, but not everything. We can't give you all the secret sauce. Otherwise, there will be no surprise. We also manage a lot of the rental cost. I think thanks to Khun CRO, sorry, my brain is not working the most popular CRO. We did a lot of negotiation on the rental or the shops and a lot of the rental on the network side as well. So that's partly -- we optimize the cost. Even with the inflation this year, a lot of costs go up. But overall, I think we could save roughly about THB 1 billion -- actually more than that from the budget that we target to spend, right? And once we have that, then okay, we can have more money to invest, right? Integration, as mentioned on the broadband, this year, hopefully, we'll finish the toughest phase. Early this year, we moved or we migrate the IT system from 3BB over to AIS system. Most of the system, but not all, we do in phases because it's going to disrupt too much of the operation if we do it one go. We integrated some of the back end already. We moved the ERP, so the later part of this year we'll be more on the front line at the region level. And to me, that is key because if we do it well, we can unlock a lot of local resources in the region. And that way, we can provide hopefully faster service, better service. And if we do well on the network integration, we can actually expand quicker or respond to the expansion or the events that happen much faster than our competitor because we have more resources locally, right? Brand is another thing that eventually for the consumer side, we'll try to combine into one brand, so that it will be easier to build brand and it's more optimized. And I think we have a stronger and much larger ambition on the broadband than before that it's mainly on the broadband service only, right? As you saw that we increased our focus on the content, we can bring in now the Clicx, the finance side of things. So hopefully, with everything, if it comes online, then we can create more value to household. So in the end, that will be a household segment. And in terms of how we're going to create more value, the first thing is we need to create better and a different consumer experience. This shop is one of the, I would say, pilot project to see how we can turn a shop into a more lifestyle and a better way to engage with hopefully younger consumers, right? So this is one of the experiment that we're trying to do. The second thing is on the call center, right, and the apps. In the end, these 2 we need to help together to serve customers on the service transactions. We're starting to deploy some of the AI use cases at the call center, and that helps a lot on certain use cases that they don't need to go to the agent or they don't need to wait for the agent. We also experiment with the new system at Clicx. So Clicx, a lot of things are more automated. And that's why we were able to receive more calls and more contact from the consumer from day 1, without for sure, compromising the CX score. I think we are in a way to develop this call center plus app and also shops like Khun Ju mentioned, it's going to be more integrated, digitally flow seamlessly among different platforms so that we can hopefully sell more and also give them better service in shorter time frame. Last one is more or less the same angle that Khun Ju mentioned, but now we talking about having majority of customers within our group already. Next layer more icing on top so that we can generate better ARPU, higher ARPU. AIS PLAY is the biggest one that we bet on right now, right? The PLAY ALL, we try to make sure that every one or most of the Thai people can afford, right? Points, now we have a lot more people engaging with our points systems. Our competitors have also very strong point systems, and that's something we have to fight head-to-head with them as well. Clicx will be another one that can help strengthen our internal ecosystem. In a short time frame, Clicx will start giving mobile financing, the same way some of the nonbank players are giving out. I think that hopefully will help boost the sales of [indiscernible] again. And I think that way, we can bring a lot more people to the shops engaging with us. And being within our internal ecosystem for much longer. Right now, when we look at the market share, we -- a lot of people buy handsets from outside and use our network. So why not combine everything and let them buy more from the store, get more points, better service, hopefully get some funding as well, right? So that way, I think we keep everything internal, right, and more benefit can be given to the consumers. And upcoming, hopefully, we can do a good smart home or smart living platform, right, that we can launch into the household, give them more value, not just speed on broadband alone. Other things that can start to be a real use case. I think we have a lot of elderly at home. We have a lot of pets, people who love pets, right? We need constant monitoring some of the alerts and everything. Security is one of the main concern. Now a lot of [indiscernible] men going into your house, putting things in front or even taking things away, right? That part all this can be helpful, right? So I think that's the 4 ways that we try to make sure our value is sustainable. And lastly, even though we paid extra dividend early this year, some people may be worried, leverage increased quite a bit. The team just want to make sure that now we are coming back to the normal place that we're always comfortable with so that we can afford all the investment we need in the next few years, right? So now everything has come back to a very normal situation. The ROIC goes up to meet where we think it's very strong 19% and that way, we can make sure we gain or we maintain that level, but we gain more revenue, I think that's going to be the key for us. All the new business that's going to expand, more or less going to have lower margin in the beginning anyway. So I don't think we want to grow that too aggressively, but we should grow the business first, right? And lastly, I think on the dividend per share, it's growing alongside the profit growth that we had. For us, we still look at growing profit, not just maintaining it and try to grow both profit and revenue in the next few years if we can. right? But quarter-on-quarter, sometimes there's one-off, there's certain economic situation that we can't control. But over the long run, I think we want to grow both the business, optimize the cost. Hopefully, we can give more return to shareholders. And I think that's all for me.

Thank you. So while we are waiting to set up the stage for Q&A session, we have seat 6 here. So our team will manage this. So priority will be given for the people in this room. [Operator Instructions] We have first one from Khun [indiscernible].

[Interpreted] I have 3 questions, so I am combining them. The first one on the B2B market. As I understand, we have the wars and I understand that, that is out of control. But I would like to ask you that a lot of people said B2B market has a little bit of hope. And in other countries as well, the revenue contribution, especially in China. But the real challenge in the Thai market, as you showed the slide, you have so many products, and they are enough. But the real challenge that prevented our growth, if we took away the macro conditions that we can control? And how do you want to address the challenge?

[Interpreted] Well, we cannot do away with the macro challenges because we actually face 2 challenges. The most important is the change in the buyers' behaviors. And that is because things are costlier. If you look at the IT costs, the machine, the ramps, they're more expensive week by week. And if buyers have THB 100 and they are going for an amount of goods. But after a week, they cannot get that amount anymore because the supply is limited. So the prices do not have the persistency, so behaviors tend to change because people don't want to buy anymore. They will go for renting. And from CapEx to OpEx. And when they want to get the approval, the process will be lengthy and everything will delay from this week to next month and to the month after. And on the technologies and supplies that we own, there's no issue. As Ju explained that we have the cloud, we have all the strength but the ways people consume them have changed. That's a major change that we have to adapt to. And it is going to rebound in Q3, it is coming back, but that doesn't mean the buyers changed their behaviors back, but the market has accommodated the change with the way we forecast and manage, the market have changed and B2B behaviors have become more predictable.

[Interpreted] So without these challenges on the rise of the costs and the delay, why is the gap of our price and other countries?

[Interpreted] Well, our market structure is led by consumers for large enterprise. We don't have many of them comparing to other countries. In many other countries, the digital services, telecommunications with the mix -- different mix of the landscape. It could be 15%, 20%. But for us, we are more similar to Indonesia rather than Singapore. And large companies, listed companies, they are limited in number, and you see that structure. Another factor is that we are led by SME. They come in millions and they are [ foresight ] consumers. The market structure is like that. In the past several years, large companies use technologies as CapEx, 5, 7 years ago, they were in CapEx model. And in the cloud and AI age, this will change automatically. It will take some time, but it is necessary for large companies to move up to cloud. For the SMEs, that they didn't use a lot of technologies before. I believe they will turn to more technology. Digital technologies like basic infrastructure or software as a service, this will grow. But this will also take time in the market structure as a whole. But this will grow definitely because of the need for competitiveness and survival of the large enterprises and SMEs.

[Interpreted] Second question for Khun Woo. I've noticed for several years that through leaving content. They don't focus more -- as much more on content, but you are going on the other way around and you want to get as many network partners as possible. But your competitor is going the other way. So I try to understand through -- you're trying to improve engagement on the niche market because that will create better value. So there is some differences in your thinking. You're changing the content into the second and third layers and will this affect you adversely?

[Interpreted] I think the approach -- our approach that I have mentioned before that we have created the platform so that we can bring the best content to the customers. That's how we expand our services through ecosystem. And that may be different from self-owned content or self-produced content. I'm not sure which is right or wrong, but I'm very confident that the global content, several segments, and our customer base, the large customer base needs to be accommodated as much as possible. Today, you want to watch Hollywood movies and you're using a lot of TikTok. And we watch some soccer sports programs and now we have shorts, video short form, dramas. If you remember, we announced collaboration with partners, we have the short-form videos launched 1.5 titles per day, not per month. So the potential to create, it's huge globally. And if you look at the short-form videos, we have 3,000 already and 1.5 titles are added every day and the variety is a key to respond to the needs of our customers. And we aim to value. And that means are we doing this as a subsidy project or a business model? No, we intend to create values to expand our ecosystem so that it is viable. I think many people who intend to produce or co-create, that's great, and you can address any segments you like.

[Interpreted] Last question, I would like to ask you about it. Can you address that because there was a case like LINE BK non-collateral loans. That is not something the banks are doing anymore. And it is going to be unsecured loans. How do you plan to do it?

[Interpreted] Well, actually, I shouldn't speak about others. But in the framework, I must say from what we have seen, there are some misunderstanding in a couple of things when people commented -- people think it is just a Chinese app and there have been a lot of apps coming in giving loans. But Clicx is a commercial bank. It is part of KWO and without all of this people will understand better what is it doing. And I think this is for a smaller group of people. It is not that the entire population is doing it. And this smaller group of people initially, there are new and that is not that many. Otherwise, for nonbanks, operators, Clicx will function to look at the bank loan segment. And as one of the objectives for virtual bank, they want to serve the underserved segment. So the process is the same. And in the end, eventually this will be just a small group of people. We have several partners with several areas of data, we'll see -- we have the visibility and the models and other things will be covered by Clicx. But for us as a business partner, we see the segments where people who have good credit and have good intention like when people get excited with the growth of mobile financing in the market. And that shows that with an extent of purchasing power, they want to get these to fulfill their needs. So, initially, it's going to be a buzz, but we have to believe that we have enough people who will grasp this opportunity and make good on them.

[Interpreted] Next we have Khun Wasu from Maybank.

[Interpreted] Wasu from Maybank. Okay, I have several questions. First one on AI bundle offering. In the analyst meeting the last time, I remember you were selling chatbots and ChatGPT for consumers. Have you started on that? And what was the response?

[Interpreted] We started and we had some response, not really outstanding because most of the customers engage with the AI platforms directly before that. And about AI passport. I don't know whether that is a hot issue or not. But it gives people the premium version to another avenue created by the government. But we are committed to working with our partners to offer the best packages.

[Interpreted] Let me follow on that in the enterprise market, is that going to grow?

[Interpreted] In the enterprise segment, the demand is growing constantly to run the models. Let me explain in 2 layers. Many people may be using it when you are running local models where you train the open model in the country, which is not exactly like Gemini or ChatGPT, but the demand is growing. So when we talk about sovereign AI, sovereign cloud, that will play an important role in the enterprise market. The second tier, business needs for AI. I think we all use them in various shape and forms. But the demand is very high in the adoption, but there are so many levels. For example, the use of enterprise data on OpenCloud, and that is very sensitive comparing to just asking questions.

[Interpreted] The second question on the packages. On the prepaid packages, I see the data quota and speeds have been changed to encourage people to up-tier. Will there be room for the adjustment of the prepaid packages anymore?

[Interpreted] Well, the prepaid packages adjustment, that was due to the data analytical efforts because people who bought smaller packages, they had to buy more eventually. So we are offering a higher value for them. But in the future, to be honest, from the past behaviors, people consume more data. And we have mentioned the 5G Advanced. The use case that I mentioned, they consume more data. So if we put in the lifestyle aspect we can get double-digit growth.

[Interpreted] And the last question on [ KO ], THB 199 per month. That was mentioned a few times in the presentation. Do you have the financial target for this package?

[Interpreted] Yes, we do have the target, but I cannot reveal that right now. But we aim to create value, but not to subsidize. That's the main thing.

We have Khun [indiscernible]

[Interpreted] I am [indiscernible]. So I have 2 questions. The first one on the Muang Thong project. The logic that you are doing this smart city there is for showcasing or do you want to do it as a model and then replicate it somewhere else in different parts of Thailand. So what is the revenue model for this? And how much revenue can this create? And the other thing that I wanted to ask is the Safe Connect part. So is this going to be a free service for AIS customers? Or is this going to uplift ARPU for this service that is being provided?

[Interpreted] So let me answer this first question. Many of you may not have heard a lot from us in terms of infrastructure projects or services. I'll give you a few examples so that you can have a better picture. Right now, the Queen Sirikit Convention Center, we are actually the one providing infrastructure for them. Siam Paragon is another example. And another smaller building like Pearl building in -- where AIS has offices that was -- we were the one doing infrastructure for them and also some industrial estates like Amata that had industrial estate are provided service by us for their infrastructure and Muang Thong Thani is a bigger size than just normal industrial estate. So I think that this is our business model and is a very important service and what I call -- this is what I call infrastructure service. This is what we provide as a service. But we may not see it clearly, but this is another part where we expanded. That's the first one. Is it replicable? Yes, you can. And we will see more clearly that when we have modern infrastructure and broad infrastructure -- broad enough infrastructure, we -- it will enhance the quality of life in there. Also security will be enhanced. And I'd like to add here that in there, there are 2 universities and 1 school, 1 big exhibition hall. And at 1 very moment in a concert, they can host 15,000 people in a concert, and we are not actually counting these 200,000 people living around that area. And so we are confident that the digital infrastructure that can enhance it this place as a smart city is actually essential for that area. And the second question is the Safe Network. We actually do not intend to charge our customers for Safe Network. It's actually our responsibility to protect our customers the best we can. Ill-intent people, the scammers, we can never catch all of them. And these people are developing and improving their techniques, be it the voice SMS or Internet. These are the 3 big infrastructure, which the scammers use. And so we intend to add intelligence in there so that we can protect our customers. This is not something that we would charge our customers because it's kind of our responsibility to protect them.

So we have next Khun Da Wei Lee from Morgan Stanley.

Da Wei from Morgan Stanley. Three questions. First one is on sovereign AI. Can you share with us the size of the sovereign AI opportunity in Thailand? Because from my understand, enterprise demand revenues are not particularly big for telcos in Thailand. And is this separate from your data center business? Are you also buying GPUs? Are you doing like a GPU as a service like what Singtel is doing? And if so, can you also talk us through, kind of, like, the revenue projections and ROIC? So that's the first question. I'll ask my next 2 questions after.

It's separate. The sovereign AI is actually the digital service from AIS, which is we don't do the GPU as a service as of now and then it's separate from the data center that our parent company invest.

And how do we think about the revenue opportunity?

The sovereign AI is actually if you're looking at the cloud first policy, which government is very push and support to make that the sovereign AI, government sovereign cloud to be the key -- I would say, key projects since last year. And I think the opportunity has become bigger and bigger and the penetration also the adoption of the sovereign cloud and AI from the government will be increasing for sure. If you look at the government budget, you will see the big number of incremental compared to the last year.

Second question is just on quantum safe network. Is there a requirement from the regulator on this? And how much are we actually investing? And I mean, it doesn't seem like there's a positive ROIC. It's just more like protecting more from a security perspective.

Allow me to take the first part, the second part about ROIC, will pass to Khun Hui. On the first part, it's required more investment, right? And it actually is designed for the enterprise customer who want to prepare the infrastructure for what they call is a the quantum -- when the quantum computer is ready and is big enough. So if we decided to serve our enterprise customer to make sure that those enterprise customers will be able to provide more secure services to the end customer, that's one thing. And then basically, if you look at the networking line, you need 2 equipment first on one side and another and the quantum Safe Network is doing something between the data in this line to make sure that the encryption keys changed before quantum computer can be created. It's a simple idea how it works.

Let me add on the ROIC. I think this is good. It's a network infrastructure, put it that way. And it's a telecom equipment encryption key or quantum, you can think of it as the another layer on top of transport network. So it is a telecom infrastructure that we put it in. So the ROIC will likely to lean towards telecommunications. Coming back a bit, let me add on the sovereignties. The size of AI sovereignties is actually start from small going. It's totally different size from the needs of having data centers to run model for hyperscalers. That one, you talk about 2, 3 gigawatts of data center required for AI and cloud to process the work, distributed model training, whereby when we talk about in country, it will start from small, is growing. The important of it is, at the end of the day, as I mentioned, the government state enterprise, the large enterprise will eventually, this is upcoming, require data residencies, require the AI sovereignty as well as the localization in order to protect and to make use of it. It's growing. Maybe a year from now, you hear a bit more about how it grow at this point is starting.

And my last question is with regards to capital management. How do you think about any potential for more special dividend, any financial metrics that you look at equity as total assets or whatsoever before potential another drawdown or retained earnings.