SET-listed Samart I-Mobile (SIM) plans to completely transform its handset distribution business to become a digital solutions provider by 2020.
Samart Corp president Watchai Vilailuck is looking to transform the company by 2020.
The move aims to generate new revenue streams from private network communications such as digital trunked radio system, digital content, digital sports and marketing, and the Internet of Things (IoT) to serve rising trends.
SIM was renamed Samart Digital Plc last month after receiving shareholder approval.
Samart Digital chief executive Watchai Vilailuck said its mobile business had previously been a major revenue generator for its parent company, Samart Corporation, accounting for 33% of total revenue over the past two years, but today generates only 20%.
"We have to move away from this segment, which has high investment costs and intense competition, before it's too late," he said.
The transformation aims to make Samart Digital generate one-third of the group's revenue by 2020.
"We sold more than 100,000 mobile devices per month last year via SIM, but sales fell to only 10,000 units per month last month," said Mr Watchai.
Samart Corp's financial filings in the second quarter reflected the poor showing, recording only 3.8 billion baht in total revenue, with a net loss of 188 million. The company booked net profit of 88 million baht in the same period of 2016.
Mr Watchai said losses in the second quarter were attributed to intense competition and the sluggish economy. SIM reported total revenue in the second quarter this year at 329 million baht, a 60% decline from a year ago.
SIM officially exited the mobile operator segment in June after the company submitted a request to the telecom regulator in April this year to allow SIM to stop providing mobile services under the mobile virtual network operator (MVNO) model.
A MVNO is a company that provides mobile services by renting another mobile network's infrastructure.
SIM began providing mobile service under TOT's 2100-megahertz network in 2009, gaining over 700,000 subscribers at its height, which fell to under 10,000 in April this year.
Samart Digital's five divisions include digital network; digital content; iSport; Zazzet (an online public platform focusing on asset sale service business); an IoT device sales and services.
Digital content, iSport and Zazzet will be used as marketing channels. Samart Digital signed an agreement with CAT Telecom to provide private network communications for state and private sectors, which falls under digital content. The service will be launched next year.
