DTAC makes good on price war pledge against rival AIS

Competition between market leader AIS and the number two player has always been fierce, but reached breaking point over AIS' Sawasdee promotion, which DTAC says copies its earlier-launched BabySim. Both cards offer refill cards with 30-day validity periods, and are aimed at growing provincial markets. DTAC officials have taken this as a declaration of war, saying that DTAC has "little choice" but to retaliate, with price the only weapon left. The company's fierce defence of its prepaid customer base is easily understood -- six million of DTAC's estimated seven million subscribers are prepaid clients. DTAC has also accused its rival of unfair competition and of using power and money to compete. AIS, which controls nearly 60 per cent of the 23 million subscriber mobile phone market, is part of Shin Corp, a company linked to Thai prime minister Thaksin Shinawatra. DTAC claims that AIS has been buying its dealers and partners, and calling its post-paid users to encourage them to switch to AIS, a charge the market leader has denied. DTAC's latest move -- the one-baht-per-minute promotion -- brings the former promotion rate of 2.5 baht per minute even lower. The usual per minute rate is five baht. Customers can apply this rate to one of four blocks of time: 9am to 3pm, 3pm to 7pm, 9pm to midnight or midnight to 9am. It is open to new subscribers, although existing subscribers can switch to the new rate by paying a one-time 'service cost' of 100 baht. The promotion coincides with the first anniversary of the company's 'Happy' pre-paid service, and is valid until year-end. Meanwhile, DTAC has also expanded its BabySim promotion to include 300 baht cards that are good for 90 days.