True Corporation Public Company Limited (TRUE) Earnings Call Transcript & Summary

[Audio Gap] year result of 2019. Together with me on the stage, Khun Vichaow Rakphongphairoj, our Executive Vice Chairman to the Executive Committee; and Mr. Anat Mekpaiboonvatana, our Group President; and I, myself, Yupa Leewongcharoen, Group CFO. So let's start with the presentation.

Okay. Good afternoon, and welcome to True's Analyst Conference for the fourth quarter and full year results of 2019. And let's start with the group's highlights. True Group reported improving business performance and net profits of THB 5.6 billion in 2019. The Board of Directors announced a dividend payment of THB 3 million or THB 0.09 per share subject to shareholder approval in the upcoming AGM. TrueMove H led the industry's revenue and subscriber growth driven by double-digit growth in the postpaid segment, while prepaid segment resumed growth momentum. The broadband segment delivered stronger growth in the second half despite competition which is caused by other operators as we add value through 1 gigabit per second fiber offerings and proactive retention measures. Our digital platform, TrueID, continue to expand and more than double its many user base with rising revenue from digital content subscription and advertising. The Digital Solutions unit developed solutions for various industries and increased the IoT-connected devices on our platform significantly to 237,000. At the same time, the additional 5G spectrum won in February auction at reasonable price will accelerate growth for both mobile, IoT and digital arms. Next page. Now moving on to the financial performance. Consolidated service revenue grew 3.9% or 5% year-on-year, excluding World Cup contribution to THB 105.8 billion led by TrueMove H above industry growth, particularly in the fourth quarter. Core operating expense grew 1.8% year-on-year, mainly on network-related expenses, including the new DIF rental. Excluding DIF rental payments, core operating expense was flat from the previous year. Core profit significantly improved from a loss in a year earlier to THB 2.2 billion profit in 2019, excluding DIF and other onetime expenses. We are confident to continue profitability trend this year as we see significant growth potential, particularly from digital and mobile content. At the same time, an aggressive range of productivity initiatives are underway to drive profitable growth. Next page. Moving on to the cellular segment. TrueMove H took the lead both in terms of revenue and subscriber growth. The service revenue grew 6.7% for the full year and 11.3% year-on-year in fourth quarter, mainly from continued double-digit growth in the postpaid segment. Our postpaid net adds of 220,000 in Q4 represent 59% of the industries. We are on the path to be #1 player in this market. Our prepaid segment already resumed growth and should grow faster as the targeted campaigns, expanding channels have progressed well. Our analytics team also helps a lot in terms of acquisition, retention and monetization. Next page, please. The addition of the new spectrum will solidify our network strength, matching consumers' rising demand for data usage and contribute significantly to our market share gain. With the optimal mix of our low-band and mid-band frequencies, we have the highest usable bandwidth per subscriber compared to other major industry players. We've got the spectrum at a very reasonable price, which will further strengthen brand perception while lowering cost per bandwidth. At the same time, our synergy with China Mobile, the world's largest mobile operator with the highest number of 5G customers on the 2,600 megahertz spectrum for know-how, device, network design and procurement continues to give us a significant competitive edge. Together with the group's comprehensive digital ecosystem, we are confident of taking the lead in the digital and 5G era. Next page. For the broadband Internet segment, the 1 gigabit per second fiber broadband through the Gigatex fiber router and proactive customer retention campaigns gain traction, driving TrueOnline's above-industry net adds of 320,000 in 2019, led by 108,000 net adds in Q4 alone. This drove broadband revenue growth higher in the fourth quarter compared to last year despite industry-wide discounts. We will continue to focus on quarterly subscriber acquisition and innovative devices to further expand growth. At the same time, our customer segmentation strategy will help us penetrate into untapped segments and increase cross-selling potential. Next page. The Digital Group is our key differentiator to stay ahead of the competition. They play a key role in building a competitive ecosystem for True Group through engaging digital and privilege platforms. TrueID has received overwhelming market responses and more than double its monthly active users to 24.6 million. The ITT -- the OTT platform, TrueID TV, also continues to scale rapidly with more than 500,000 TrueID TV boxes sold after its commercial launch in Q2. Revenues from digital content subscription delivered strong growth as the paid content transactions grew to over 625,000 while digital advertising revenue trending upward nicely. Meanwhile, our privilege and loyalty platform, TrueYou and TruePoint, greatly enhance customer retention and quality subscriber growth. As for the Digital Solutions, we focus on strategic industry verticals, such as agriculture, retail, manufacturing, supply chain, logistics and health care. Our products include the digital monitoring solution for dairy farmers and cloud AI robots. True Digital Solutions also offers the smart transport solution for the fleet management to key players in the industry, such as manufacturing, retail and health care. Our client base continue to expand, driving the total number of endpoints and devices supported by our platform, up by 50% year-on-year to 230,000. This concludes today's presentation. And now let's go to Q&A.

Yes. It seems like because of COVID-19, less people joined live in this room than people in the web, so let's start with questions from the web first, and then we will take questions from the floor. Okay. The first one is that, how much will be the spectrum payment this year? How much will be the scheduled payment for vendor financing this year? Is it too optimistic to assume that you're operating free cash flow will return positive sometime this year, even under a new 5G CapEx cycle? I would say that the spectrum payment for this year would be a little bit high. As you may aware that we had joined 900 megahertz payment extension announced by the government. And the big amount, the big chunk of the 900 megahertz spectrum payment will be in off this month, which is THB 22 billion. And we also need to pay 10% of the new spectrum that we just won in February. So altogether, the spectrum payment for this year would be about THB 27 billion to THB 29 billion. And in terms of the vendor financing this year, it will be at a similar level as last year. Another question, is it too optimistic to assume that your operating free cash flow will turn positive? I would say that because of the burden on spectrum payment this year, we have issued local bond, a large amount of local bond last year so as to pile up cash to pay for the spectrum payment this month. As you may aware that in our balance sheet, our ending cash for last year is almost THB 50 billion, just to pile up cash for the spectrum payment this year. So in terms of the spectrum payment, the cash we have prepared and for the new 5G CapEx, I would say that because of the new spectrum, the 2,600 megahertz spectrum can be used to upload 4G network capacity as well. Meaning that when we invest in the 5G, that investment can substitute the 4G investment as well. So we don't anticipate a lot higher investment in 5G. So in terms of operating free cash flow, we believe that our operating free cash flow has improving, and we will continue to improve in the future as long as we're not too aggressive in terms of 5G investment. And I believe Khun Vichaow can add more on the 5G CapEx investment as well.

I think people have quite a bit of questions about 5G CapEx envelope that the operator has to schedule for. I'd like to share with you one specific piece of information is that the current 5G technology, particularly using the 2,600 megahertz band, there is a technical feature called DSS that stands for dynamic spectrum allocation. What that means is that with a 2,600 spectrum, even though you're deploying 5G equipment, any handset that has 2,600 megahertz spectrum can use it. So today, for example in Bangkok, it's about 70% of the handset, which supports 2,600. So in fact, the 5G spectrum can massively offload 4G capacities. And because of the spectrum efficiency and the efficiency from the 5G equipment, that means we need to expand 4G that we allocate the budget for -- we actually spend less using the 5G spectrum. The equivalent investment were much, much less than comparing to the 4G capacity investment. So that part actually helps. So we actually -- we can actually shoot 2 birds with one stone with 5G deployment and also supports 4G capacity requirements. So thereby actually helps.

Next question, please. True issued large amount of local bond last year to finance a prior credit. How much are you expected to issue local bonds for this year? If the market situation become worse, what will be your other funding alternatives? I think I touched on this issue in my previous answer, that we did issue a large amount of local bond last year to pile up cash for the spectrum payment this year. So the burden for issuing of more local bond this year will be a lot less than last year, I would say. And in terms of the market situation, if the market situation become worse, our alternative funding, we have -- actually, we have various alternative funding. For example, we're exploring U.S. dollar bond as well because right now U.S. dollar bond market is quite liquid. We also can sell more assets to DIF if we have to. We also hold almost 30% of DIF share, which actually, we don't have to hold 30%, so it's depend on our decision. So this is the example of the alternative funding that we have. Next question. Given your increase in spectrum holding, the economic value of 850 megahertz looks deteriorating. Is it possible for True to lower net cost to CAT on 850 megahertz deal before 2025?

Well, thank you for the suggestion. We'll definitely use this input as a discussion point with CAT. And we could have other potential cooperation with CAT. And that is also one area that we can discuss about.

Next question, please. How is your store expansion, i.e., 7-Eleven True shop-in-shop brand going? Will the current economic condition force you to scale down your original shop-in-shop packet? May I have Khun Anat to...

May I talk in Thai and Vichaow will translate for me. [Foreign Language]

I just want to quickly summarize what Khun Anat has shared with you guys is that in terms of the shop-in-shop expansions, we basically base on economic values. You could generate enough return. So everything is based on what the specific packet is. But this is the part that I'm going to add a little bit more is that at this very moment, the shop-in-shop expansion, the situation or the scenario is still very positive.

So next question, please. If the GDP turns negative growth for 2 or more quarters, what can be the impact of the mobile demand and revenue?

I'd like to share with you guys is that based on past experience, the interesting part is that when the economy gets bad, people will start to spend money. For example, people rather than go out to watch a movie, they will stay home. Somehow it's counterintuitive. But for the telecom market, when people tend to stay home more is actually good for the telecom market. If people tend to use more because we -- and they can use their online broadband at home much more economically since they pay a fixed amount. So in this part, actually, I believe, if past experience is a guide, it might not be a bad thing for us.

Next question. How much is the 5G device adoption rate in 2020 to 2022 for Thai market under your assessment?

I think both questions, in terms of 5G device adoption rate, at this very moment, they have quite a number of 5G device in the market already, but still the minority. And to be frank, the device cost is still very high. So the initial group of people that are going to use 5G is probably the first adopters, the one that has that. So -- but then because the huge push in the Chinese market, the 5G adoption is going very fast. So the traditional price erosion of the devices over a few years, is actually much, much shortened. So we believe that by the end of next year, the price will come down to a point that can be quite affordable. And in the beginning is still quite a niche market, which is actually, if I can expand on that a little bit is that -- I'll answer the second question as well together is that what can be the reason for mass customers to pay more for 5G service than they pay for 4G service? At this very moment, as I mentioned earlier, because of dynamic spectrum sharing features of the 2,600 megahertz 5G band, people do not even have to use 5G handsets. Their 4G handsets can be used. And then with this massive amount of bandwidth coming on the market, people will see immediately uplift in terms of the capacity they can use. So that part helps. I would believe that as an answer on the previous question is that the mass adoption by customers might take a while because the handset is still very expensive. I think the mass adoption could come as early as middle or late next year, but most likely be in the late next year. From now on until the middle or late next year, the price is still high, but the price erosion is actually growing very fast at this very moment.

Next question. Will your customer feel the difference between two 5G service on 2,600 megahertz and dtac 4G service on 2,300 megahertz?

Definitely. 5G technology, as you know, the radio frequency, the technology itself is a few times -- a few hundred percentage better than the 4G service. So people are definitely going to see the difference, they're going to see a difference. And then...

Next question, without 3,500 megahertz band, how long will True holding bandwidth be enough to serve the customer?

With 90 meg of bandwidth that we have, based on our current assessments, can last forever because we've huge bandwidth. The bandwidth that we have is huge. I just want to give you an example. In the U.S., out of 4 operators for 5G, there's only 1 operator in the entire United States of America has 60 meg of mid-band frequency. Out of 4 operators in the U.S., Sprint, AT&T, Verizon and T-Mobile, out of 4, there's only 1 operator has a mid-band license -- mid-band frequency with 60 megs only. So 90 meg is a lot, a lot for us.

And the next question concerning the 3,500 megahertz as well. The earlier the auction of 3,500 megahertz, the more benefit for dtac at the expense of Advance Info? Is it correct, Khun Vichaow?

I think I -- for political reasons, we shouldn't answer this question. It's not right for me to answer this question.

Stepping aside possible impact from COVID-19, how much will 5G service add to revenue growth trajectory for the consumer segment in the next 3 years?

As I mentioned earlier is that with -- when an economic downturn or something that prevent people going outside is actually could be beneficial for the telecom industry. So that's more or less in the same token that we can mention.

Next question. After the auction, AIS now has 50% more 700 bandwidth than True. Will this become a problem for True, particularly for your 5G upcoming competitiveness? And what are your options for rectifying this low-band 5G spectrum parity issue in the longer term, seeing that there are no more 700 megahertz left?

Before I answer that question, I would share with you the big picture first. For 5G service, as you know that you have to have minimum of 40 or 50 meg to make the 5G service viable and then competitive. So the low-band frequencies, basically for coverage. And for coverage, on the low-band part, which is FDD in nature, not the TDD technology. Since this coverage, the throughput between 4G and 5G, that's actually not much different. In fact, it's the same. And with that in mind, remember this, True has 700, 850 and 900. In fact, the aggregate low-band frequency, we have much, much higher than our competitors. And in fact, personally, I led the team in the auction. I'm so happy that they went crazy and we don't have to pay for it. In fact, we just go 1 click, and then we threw them out. We don't need it. If you look at the bandwidth per subscriber in terms of low-band, True has a much, much higher low-band than AIS, not counting the other operator. In fact, if we get more, we probably turn out -- people might think that we are stupid, but perhaps you may say that.

Next question, please. AIS said that it will roll out 4G 2,600 megahertz. dtac plans to upgrade its 2,300 megahertz 4G network using massive MIMO. Can we see another resurgence of 4G CapEx this year in the industry? How will it affect True?

I think what AIS is saying that they will roll out 4G for 2,600 megahertz. I believe that AIS actually roll out 2,600 5G by using DSS to support 4G because the investment in 5G using the same frequency is much, much more effective in the tune of few hundred percentage higher. So in fact, we can say the same thing. When we roll out 5G, in fact, in the beginning, the majority of bandwidth will benefit 4G. So it's the same thing for both AIS and for us. Now 2,300 4G network using massive MIMO, our current network in terms of 1,800 and 2,000 solely use massive MIMO. So I think it's a normal for dtac to say that, for these two to say that. And the last part of the question is that there's actually no reason to invest in 4G anymore. Your investment in 5G is automatically means that you invest in 4G by using capacity offload of the 4G part.

Next question. Why do you think AIS is so aggressive with their 26 gigahertz license acquisition? For example, they acquired 12 license whereby True acquired 8 license. Should we be concerned that AIS is planning to open up a new front for fixed wireless broadband, because this is clearly way more than is needed for IoT and self-driving car is still many years away? Or is this just land-grab behavior and nothing more?

I like the last 2 words, nothing more. Remember, there is nothing more. It is a very good marketing gimmick. There's actually -- now remember, on the high-band is basically meant for corporate and government use. That is on a very limited area and very specific solutions. In fact, that's what we plan to do. And we believe that 800 meg worth of spectrum on the high-band is more or less sufficient. I think AIS is much richer than us, they can buy as much as they want and it's up to them. But there's actually no competitive advantage.

Next question, the 3.5 gigahertz auction has been delayed until next year, supposedly. But when the auction happen, do you see this as an opportunity to finish off dtac for good and deprive them of all the remaining commitment of 5G spectrum? Would you consider bidding as a consortium with someone like the CAT?

First of all, I think the potential auction on 3.5G is still up in the air. Unless the refarming of the 3.5G really going through and able to solve the problem with the satellite issues. That's still up in the air. So I'm not quite sure that when they will really come into play. Now in terms of finish dtac off, that sort of thing, I'll not comment on that part. And also, it's not appropriate at this very moment to comment on consortium with CAT yet.

Next question, with so much data capacity going to be available, should we expect that fixed fee unlimited, let's say, 10 to 20 megs or even unlimited speed unlimited data plan as the norm going forward? May Khun Anat help answer this question?

[Foreign Language]

What Khun Anat was saying is that it's basically they depend on the market. Right now, it's already 10 meg more or less. But I just want to add to Khun Anat's comment a bit more is that for operators, unless it's really necessary, there's actually no need to compete that aggressively either.

Next question is on TrueOnline. Understand that Advanced has been offering THB 299 for 200 meg to its postpaid customer. What have you react to Advanced aggressive acquisition campaign? Has your indiscernible] grade gone up lately?

[Foreign Language]

I don't quite remember everything what Khun Anat said but I just want to summarize it in a nutshell. I think AIS actually respond to our offerings. Because on the surface, when AIS offered THB 299 for 200 meg, they actually packed with their postpaid. So the actual amount is actually much higher. And I think they will actually respond to choose a position in the market. We actually have bundled 1 gig of broadband with True TV and postpaid with an amount higher than theirs. But then we have bundle with the 500 meg on broadband with the bundle amount with postpaid, and they come out close to what AIS has. And we also have the lower ones also in a bundle. So this already has done. And then, then that should turn out quite effective. What Khun Anat has mentioned is that in the fourth quarter, we actually gained over 100,000 new broadband subscribers with those offerings. So actually, AIS will respond to us, we respond to them.

Next question. dtac has announced to use 26 gigahertz for 5G fixed wireless access service. Will dtac become the fifth potential player in the big broadband market?

First of all, I want to mention this. In some Western markets that they have using the high band. For example, in the U.S., they are using the high band on the 28 gigahertz band to provide what they call FWA or fixed wireless access. But that's not very successful. The reason is that the CPE cost or the customer premises equipment and the cost to roll it out is extremely expensive today. In Thailand, though, to roll out a FWA or the fixed wireless offerings is actually much more expensive than roll out a fiber, as of today. So obviously, on a very remote area, on some very specific area, there is a potential, but I personally do not believe that dtac, by using FWA, can become a viable online broadband operator.

And then what will be your plan to offer the fixed wireless access service? What will be the right market segment in your view?

As I mentioned earlier, in certain very specific situations, even though the cost per subscriber is extremely high, FWA or the fixed wireless access solution using high band probably worth a trial. But as I mentioned earlier, the high band is primarily for corporate use and for corporate consumptions. For example, I'll give you one example on the high band. Today, if you are in an office environment, normally, you have a LAN, local area network. To put up a LAN is extremely expensive plus is -- there's actually no flexibility. You lay the LAN cable, it's done. So on the per-unit cost, it's very high. In those very specific corporate use and industrial use, using the high-band is very useful. Because imagine yourself putting the high-band in. You don't have to lay the fibers. You don't have to do anything. And people have freedom or mobility. So for fixed wireless, in consumer segment, the segment might not be mature as of today, except very specific cases. But case on corporate use, there could be quite a few.

Next question. Under the COVID-19 outbreak, do you see rising demand for new installation?

[Foreign Language]

So Khun Anat was saying is that with COVID-19, people tend to stay in the house more and the national likelihood is that they'll probably going to use more. But let's wait until the next month's number come out and see how it goes.

Next question is on TrueVisions. I understand that TrueVisions has high revenue portion from corporates, especially hotel. Under the current situation, do you experience any extra customers showing recently? What will be your policy to limit the customer?

[Foreign Language]

Let me briefly share what Khun Anat's thought was. Situation like this, those unusual situation, just like the flooding in Bangkok quite a few years back, it's the same way. It's a beauty of True to alleviate the problem for our customers, and that we will negotiate with content providers to perhaps like have some relief for those subscribers. Our main goal is to retain our customers, to release -- to lessen their burdens.

The next 2 questions is on TrueVisions as well. What is your plan to cut the content cost further in order to relieve possible revenue downside?

[Foreign Language]

I'm not sure whether Khun Anat already addressed the second question as well.

I think -- so on this question, what Khun Anat is saying is that we will actually renegotiate with our content providers on an annual basis, year-over-year way. So there's a regular reductions because, as you know, the traditional broadcasting business is not really like a rising business. Meanwhile, even in our own production internally, we were scaling back on certain ones that's not important or no longer useful. And even the ones that we have -- used to have exclusive rights like a Thai Premier League, at this time, we actually do not participate in the bidding, which [ should likely ] go. And then we just use that as a noninclusive-type deals to reduce costs.

[Foreign Language]

Again, I cannot remember everything what Khun Anat said, but I'll just say in a summary is that, in fact, for TrueVisions business is normally sport. People are very keen about sport. People are very keen about movies. People are very keen about news and documentaries. And in terms of sport, beside EPL, we actually have a lot more other contents. For example, American footballs, the regular footballs. Khun Anat did not mention bowling. Sometimes even bowling itself, billiards, tennis and that sort of thing. And in fact, we aggregate those contents into our own sport channels. And in the movie side, we also aggregate movies, Fox Movie, premium movie and that sort of thing, to aggregate them. And in the news, CNN, BBL -- BBC, all those things that -- and then documentary is also another area that is quite popular. National Geographic and that sort of thing that we've been carrying on for years and years.

Next question, please. Next question is on True Group's CapEx guidance for 2020 and next 1 to 2 years. I would say that because of we have spent quite heavily when we get the 900 megahertz spectrum in terms of the CapEx rollout throughout the country. And since then, we reduce our CapEx spending. And -- however, because of the window of financing in governance in 5-year financing terms, so those CapEx that we invest in the past, we need to pay in the 7 installment. And this year, we need to still pay the 900 megahertz CapEx that we invest. So for this year, we believe that the cash CapEx would be similar to last year. And those CapEx will reduce significantly over the next couple of years because you already paid off all the investment in the past. And also, we don't expect aggressive investment of -- on 5G as well as we already explained that the 2,600 megahertz investment in 5G can be offload -- can be used to offload 4G capacity and even more effective. So we don't anticipate new investment this year. That's why we believe that the cash CapEx this year will be pretty much similar to last year and reduce going forward. Next question. Do you feel the need to raise equity to fix the balance sheet? Definitely, we don't think about equity raising at this moment because, as I mentioned earlier, that our CapEx picture has reduced, and we also have a lot of funding alternatives as well as the local bond market is still a lot of demand. And U.S. dollar market is also really liquid as well. So we have a lot of alternative funding. Next question, please. So no more questions from the web. Okay. Next question. Please provide others financial guidance, i.e., core revenue growth and profit.

I think we definitely are going to do better in terms of revenue growth compared in this year. But last year was very low, so definitely much higher this year. Also, in the profit side, in terms of core profits, we expect to have a major improvement.

So no more question from the web. So let's take question from the floor.

[ George Linner, Merchant Partners ]. When do you expect for the millimeter 5G towers to start rolling out, the really short wave ones? They're obviously more expensive and I was just wondering if you thought of solutions that go on in other countries where you just have -- maybe some private companies that create them and then you just rent them -- rent those towers from them in order to be able to launch them sooner.

Since the millimeter wave band or the 26 gig band, as I mentioned earlier, those are for industrial corporate use. It probably -- we're probably not going to roll out on a general public, for example, put one in the cross road or wherever. So those will be dependent on use cases. So of there's use cases, we will use them. And currently, 28 gigahertz is the one that being adopted first in North America, for example, and part of Europe. The 26 gig, I think, eventually will come and that come in a very early stage. So use cases will be, like I mentioned before, like LAN, like you kind of like install in a factory environment to control lots of devices. So I would say, practically, there's probably not much tower will be built out for the millimeter wave.

Next question, please.

I have 4 questions. The first one is about the revenue target that Khun Vichaow just mentioned. Just wanted to confirm your statement that you expect the revenue growth to be better this year than last year. For example, like last year, it was 3.9% growth. So this year it should be more?

Much, much more.

Much more. And which segment should be the growth driver from this year going forward? That's number one. Number two is about prepaid net adds. So why did every operator have increase in prepaid subscribers? And also why did True have the highest amount of prepayment as in the fourth quarter? So that's number two. Number three is about the spectrum bidding because prior to the auction, I think every operator came out in public and say that the spectrum licenses were not very cheap. It's quite expensive compared to the global standard as well. And maybe the operators might need some subsidies from the government if we need to have 5G very fast. But then AIS and True came in and bid for a large amount of 2,600 megahertz. So my question is, if the spectrum is not so cheap, why don't you wait for the 3,500 megahertz spectrum instead? And my final question is about the TrueID active users, the 25 million users. Are they all Thais or some of them live outside Thailand as well?

I think I'll address 2 quick ones. And then -- at this moment, we will provide guidance on the revenue part saying -- on the revenue growth higher than last year. I think we will leave at that part because we cannot really afford to go to details. The second one is on the frequency. With 2,600, we still think that the starting price the government set is high. But it's acceptable when it's at that starting price. And the primary reason is that if we can get 90 or 100 meg, we are set for life for 5G. So the uncertainty on the 3,500 later on, if it delay or whatever happen. Now if we somehow get only partially on the 2,600, best is we get 60 meg or 50 meg, we might end up with having to bid again for the 3,500, which is the worst scenario. That means you have to invite -- not only do you have to invest twice on the frequency, you actually have to invest separate equipments twice. So this is actually -- it's a good turnout for us and we believe that the 700 cost is really outrageous. But if somebody else bid for it, we don't pay for it, good for them. And I'm not saying that they are dumb, but good for them. I'll answer those 2 first.

The next one is about prepaid [indiscernible]. We always get to begin [indiscernible] on prepaid customer.

[Foreign Language]

So Khun Anat actually addressed the postpaid as well as the prepaid. But the question is on the prepaid side. So I'll just translate what Khun Anat say on the prepaid side. We were actually not competitive in second quarter and third quarter. And we realized that will happen, particularly in third quarter. We put in a lot of efforts into the fourth quarter because when the turn -- we want to turn around that segment. And on the postpaid segment, we actually were quite competitive all along. That's one reason that we believe that eventually we'll catch up with AIS on the postpaid side. But somehow, in the third quarter and even part of the second quarter last year, on the prepaid side, we start to not competitive. So we'll catch up with that. And the key reason, as Khun Anat mentioned, is that we use analytics. We actually use microanalyzation in the local areas, and we put in a lot of efforts. And we also have extra channel, sales channels, which is more than our competitors, 7-Eleven and also shop-and-shop and that sort of thing to drive those growth.

And the next question is on TrueID user. All TrueID users are in Thailand, which including foreigner who live in Thailand as well. Any more question from the floor? So if there is no further question, I would like to thank you very much for your participation, and looking forward to seeing you next quarter. [Foreign Language]

[Foreign Language]

[Foreign Language]