Thailand's biggest MVNO Samart i-Mobile (SIM) has revealed plans to end its agreement with state-owned TOT to provide services over the operator's 2100-MHz network by the end of the year.
The operator will instead focus on providing services over fellow state operator CAT Telecom's 850-MHz network, the Bangkok Post reported.
Focusing on providing 3G services over a single network will help SIM manage operating costs and improve brand recognition, the paper quotes Samart president Watchai Vilailuck as stating.
SIM has been providing mobile services over TOT's 2100-MHz network since 2010, but only started using CAT's 850-MHz spectrum in May this year.
Across the two networks, SIM has only around 200,000 subscribers, down from 700,000 to 800,000 four years ago. SIM has been struggling with profitability and recently had to return 300,000 of its 500,000 assigned numbers to cut down on network leasing costs.
CAT recently agreed to cut its network leasing rates by 10% to help the market's struggling MVNOs improve their profit margins
Thai MVNOs are facing strict competition from mobile operators, as well as market saturation and significant operating costs.
According to the report, SIM is undergoing a significant restructuring aimed at helping the company diversify into non-mobile areas and reduce its reliance on handset sales. The company aims to move into digital marketing and e-commerce to accommodate its customers' increasingly digital lifestyles.