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Direct top up – Customers can use a device installed at several locations of our own as well as our
partners’ such as 7-Eleven to directly top up their accounts (an online top up transaction is also
categorized as a direct top up): and Public phone booths – since 2007, TrueMove prepaid subscribers have been able to top up by as
little as Baht 10 at over 18,000 public phone booths in the BMA.
In addition, TrueMove airtime can be sold through independent non-mobile agents or “over-the-air”
airtime resellers such as individuals or small shops who are provided with a special SIM card to allow airtime transfer to end-users. These agents can refill their airtime credit through several means (e.g., Cash card, Top up card and ATM). Approximately 80,000 such resellers were registered on our system as of 2009. Although physical cards currently make the most contribution to our top up revenues, electronic channels have become increasingly popular among our customers due to the variety of payment methods and increased number of electronic top up locations. In 2009, we boosted profitability by pushing top up sales through electronic channels to save costs associated with physical cards (production, logistics and warehousing, etc.). We also continued to manage our sales mix so that revenues are generated through channels that are subject to low commission (i.e., via ATM). We arrange account executives dedicated to both the SME and the corporate segments, and sales managers and sales executives servicing the various SME and corporate subscribers. TrueVisions’ primary sales channels include telesales, direct door-to-door sales, an Internet website, a nationwide agency network and non-traditional channels via Move up vans. 4. Procurement of Products and Services Network Capacity for Services The Company believes that its extensive fiber-optic wireline network covering the whole of the BMA gives it a key competitive advantage. Voice and data travel through the fiber-optic cable network at a higher speed than through copper wire or via radio waves. In addition, the network architecture can eliminate call failures due to accidental interruption or any other causes. The network has a spider web design covering all of the service area, which enables True to utilize other routes should one suffer any malfunction. TrueMove has been able to take advantage of the latest technological developments as it built its network later than the two other major operators. This means its network is relatively more efficient and cost effective. Network Acquisition The Company primarily imports network equipment directly from leading telecommunications technology suppliers from around the world, including Siemens, Alcatel, Lucent, NEC and Huawei. The Company has also employed a number of suppliers to assist in network acquisition and installation to expand its service coverage, and is not dependent upon any specific distributor or supplier. Technical and Management Support The Company and its subsidiaries have acquired technical and management support from strategic partners: Verizon Communications Inc for True, Orange SA for TrueMove and MIH for TrueVisions. No further support has been provided since our strategic partners sold or reduced their shareholdings. These strategic partners all transferred substantial telecommunications expertise to True Group during the time they were our shareholders and our management team is capable of operating without their support.
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