If it meets its targets, the company will have acquired one-third of the revenue of the total market within two years.

Earlier True Corp group chief executive Suphachai Chearavanont said True Move H was hopeful of becoming the No 2 player by the end of this year in terms of revenue share.

True is expected to announce the second quarter’s financial results early next month.

As of the first quarter of this year, the largest cellular operator in terms of subscription base, Advanced Info Service (AIS), earned 50 per cent of the total revenue in the market, Total Access Communication (DTAC) secured 27.5 per cent, and True Move H had 22 per cent.

“Our [revenue] growth this year will be above the market’s. The market is expected to see revenue growth of only 3-4 per cent,” Kittinut said.

“True Move H has posted double-digit revenue growth for many years. In 2014 its revenue grew 18 per cent, while last year it grew by 20 per cent.”

He said the main reasons for the expected revenue growth included its expanding share of the post-paid subscription market and the continued expansion of its cellular network’s coverage.

True group holds licences to telecom bandwidth on the 900-megahertz, 1,800MHz and 2.1-gigahertz spectra. It also provides service on the 850MHz band on a retail basis for CAT Telecom.

True earlier announced it would spend Bt58 billion on network expansion over the next two years.

“By the end of this year our 2G, 3G and 4G networks will cover 98 per cent of the population,” Kittinut said.

He added that True’s acquisition late last year of a licence to the 900MHz band would enable the company to acquire additional subscribers by tapping the second-, third- and fourth-generation wireless markets currently dominated by AIS.

Jas Mobile Broadband

True and Jasmine International’s subsidiary Jas Mobile Broadband each won a 900MHz licence at an auction last December. However, the National Broadcasting and Telecommunications Commission later re-auctioned Jas’s licence, after the company’s failure to fulfil the initial licence-payment conditions. Consequently AIS grabbed the licence at the new auction this May.

Kittinut said that this year more and more mobile-phone users would turn from basic 2G phones to 3G and 4G smartphones, for which the prices are falling.

The market for mobile data has also surged. The telecom companies will compete to offer competitive prices for targeted users, but those with the best network will secure more users.

According to a report last week by Fitch Ratings, DTAC faced a major challenge to regain market share and stabilise earnings, weighing on its credit profile in the medium term.

Fitch expects DTAC’s service revenue to drop by 1.5-2.0 per cent in 2016 as the company continues to lose market share because of intense competition. Fitch does not expect DTAC’s market position to improve significantly because of the tough operating environment, as its competitors are likely to maintain aggressive marketing strategies to increase their market shares.

AIS ‘to regain share’

The ratings firm expects AIS to regain revenue market share to around 52 per cent after it fell to around 50 per cent in the first quarter. Fitch expects True to continue acquiring market share as it aims to become the second-largest operator.

However, Fitch does not expect DTAC’s weakening market position to affect its ratings immediately, as it has a sufficient buffer against lower earnings and negative free cash flow in the short-term thanks to its strong financial position.

DTAC posted second-quarter net profit of Bt141 million, declining 90 per cent year on year, mainly due to higher depreciation and amortisation, lower earnings before interest, taxes, depreciation and amortisation (EBITDA), and a one-time restructuring cost of Bt394 million.