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AIS-DTAC Earn Short Term Benefits After NCPO extends the 900 MHz payout time



Fitch Ratings says approving 900 MHz spectrum license extension for mobile operators in Thailand Helps reduce short-term pressure on operating cash flow from Advanced Info Service Company (AIS) and Total Access Communication (DTAC), stable credit outlook to help The company can join the 700 MHz spectrum allocation soon

Such measures, which was in accordance with the Regulation of the National Peacekeeping Council (NCPO) of 11 April 2019, divided the payment period for the 900 MHz band, which was owed to many periods. the main conditions for taking measures to extend the frequency of payment of frequency It is necessary for operators to be allocated a frequency of 700 MHz, which will happen soon

Fitch expects an increase in the 900 MHz frequency to increase the ability to support commitments without affecting AIS and DTAC ratings, especially in the year the company has to pay for High Number, which is 2020 for AIS and 2022 for DTAC. AIS and DTAC join measures to extend payment deadline Fitch expects the revised net debt ratio to continue operating cash flow before AIS change in 2020 by 0.5 times 1.4 times.

While the DTAC debt ratio will fall 0.4 times to 2.3 times in 2022. Fitch believes that the debt level for AIS is greater than 2.0 times and that DTAC is greater than 2.5 times. Under conditions to extend the 900 MHz frequency, the AIS accumulated frequency will be 6.4 billion Baht in installments. Same installments of 10.6 billion Baht per year in 2020-2025 from previous 2019 payment, 4 billion Baht and 60 billion Baht in 2020, while DTAC payment time will be 3.7 billion Baht annually in the period 2020-2027 compared to the original payment terms, which have to pay 2 billion Baht per year between 2020-2021 and the remaining EUR 2.58 billion In 2022

Fitch said the investment in 5G mobile phone service in the Asia-Pacific region is not much. Most of them are experimental services Given the success of service delivery in commercial 5G systems Still Uncertain Together with equipment that can be used with 5G networks, Fitch is still limited Fitch believes that 4G is still sufficient to support the growing demand for mobile data services in Thailand over the next 2-3 years. 5G, while market availability is not yet available May cause negative net cash flow and pressure on entrepreneurs' financial standing

Broadcasting Committee Television Business and National Telecommunications He has not yet announced the details of the 700 MHz frequency allocation


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