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Prasert Aphiphunya
24 November 2010
Broadband Development
in Thailand
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Overview of Broadband in Thailand Roles of National Telecommunications Commission (NTC) and
Ministry of Information and Communication Technology (MICT) NTC:
- Telecommunications Business Master Plan No.2: - NTC Guidelines on Promoting Broadband
MICT- National Broadband Policy- MOU on Infrastructure and Network Sharing
Agenda
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Overview of Broadband
in Thailand
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Broadband Penetration (%)
0.00%10.00%20.00%30.00%40.00%50.00%60.00%
1Q/20
08
2Q/20
08
3Q/20
08
4Q/20
08
1Q/20
09
2Q/20
09
3Q/20
09
4Q/20
09
1Q/20
10
2Q/20
10
Broadband/Fixed Line
per population
per household
Source: Thai Telecom Industry Database, Policy and Regulatory Development Bureau, NTC
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ProviderNo. of
Subscribers%
TOT 1,014,075 40.98
TRUE 750,792 30.34
TT&T 600,000 24.24
Others 110,000 4.44
Total 2,474,867 100.00
Broadband Subscribers in Thailand by Providers:
Second Quarter, 2010
Source: Thai Telecom Industry Database,Policy and Regulatory Development Bureau, NTC
TOT
Others
TRUE
TT&T 40.98%
30.34%
24.24%
4.44%
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Assessment of the Thai Broadband Market
Source: Analysys Mason, 2009Note: 1. Four countries, which have been compared to Thailand, have been chosen based on a consideration of
socio-economic and demographic data and all of them (including Thailand) is a member of ASEAN.2. Each country has been scored with a numerical value between 0 and 1 for each index.
Summary of Country Rankings in each index
Rank
Competition(High Score =
Greater Competition)
Availability(High Score = Greater
Availability)
Price(High Score =Lower Price)
Take-up(High Score =
Greater Take-up)
1 Thailand 0.68 The Philippines 0.70 The Philippines 0.92 Malaysia 0.34
2 Vietnam 0.61 Malaysia 0.65 Thailand 0.80 Vietnam 0.15
3 The Philippines 0.49 Vietnam 0.62 Malaysia 0.79 Thailand 0.09
4 Malaysia 0.40 Thailand 0.41 Vietnam 0.50 The Philippines 0.08
5 Indonesia 0.22 Indonesia 0.22 Indonesia 0.02 Indonesia 0.01
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Examples of supply-side barriers being faced by the Thai broadband market
Supply-side Barriers
Population density and distribution in Thailand are not conducive to the widespread availability of fixed local access network infrastructure
Spectrum for 3G and BWA services has not yet been awarded for other operators/new entrants (except TOT and CAT Telecom) which limits the availability of services using a wireless local access network
Difficulty accessing infrastructure useful for telecoms deployment to build new networks
Source: Analysys Mason, 2009
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Examples of demand-side barriers being faced by the Thai broadband market
Demand-side Barriers
Limited / underserved demand through barriers to accessing services such as lack of coverage / availability and low device (PC) penetration
Limited IT literacy and lack of consumer education on awareness of benefits of broadband
Lack of public sector services / initiatives and compelling local contentSource: Analysys Mason
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Although addressing demand-side barriers is unlikely to result directly in the roll-out of new broadband networks, demand-side interventions have two key advantages1. They are typically less capital-intensive than supply-side interventions;2. Stimulating demand can improve the business case for investing in
infrastructure, and can be enough to make marginal areas viable for private-sector investment without public-sector funds.
Supply-side interventions vs. Demand-side Interventions
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Nonetheless, it is unlikely that demand-side interventions alone will substantially change the business case for large areas of Thailand and are best considered in conjunction with appropriate supply-side interventions.
Supply-side interventions vs. Demand-side Interventions (continued)
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Qualitative Benefits of BroadbandBenefits to individuals
Incremental improvements to current applications and services
current activities can be carried out more efficiently saving resources more of current activities can be carried out in the same space of time
improving productivity
Development of new applications and services
eHealth, eGovernment and eLearning encourage a growth in national well-being, social-inclusion and knowledge
video conferencing allows new ways of working and reduces travel thusbenefiting the environment
Source: Analysys Mason
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Benefits to businesses
Development of new businesses
people are enabled to set up businesses from home local businesses are able to reach national and international markets new online applications stimulate new industries the construction of national infrastructure generates a wealth of
supporting jobs
Improvement to the productivity of current businesses
ability to share large amounts of data at high speed high-quality person-to-person and multiparty videoconferencing
Qualitative Benefits of Broadband (continued)
Source: Analysys Mason
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Other Benefits
Improve international profile as a digitally enabled economy, encouraging foreign investment.
Improve local and national competitiveness, in terms of productivity and/or ability to provide an attractive environment for business investment and growth.
Positive environmental impact, including reducing travel requirements (e.g. facilitation of remote working to reduce commuting requirements for workers).
Improve social welfare, for example through wider public access to broadband services and applications, which can in turn facilitate participation in civil society, ability to contribute productively to the economy, provide enhanced opportunities for education and creativity, etc.
Qualitative Benefits of Broadband (continued)
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Roles of National Telecommunications Commission (NTC)
and Ministry of Information and Communication Technology (MICT)
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Roles of NTC
Overall• Regulate all telecommunications services in the country through
formulating a Master Plan on telecommunications activities, setting criteria and categories of telecommunications services, permitting and regulating the use of spectrum for telecommunications services, and granting licenses to the telecommunications operators
Policies• Comprised of frequency management, competition, licensing, internet,
licensing and enforcement, interconnection, telecommunications numbering, universal service access, industry promotion, consumer protection, and human resource development
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Act on the Organization to Assign Radio Frequency and to Regulate the Broadcasting and Telecommunications Services B.E. ….
The house of representatives and the senate has approved the Act. The next step is to publish in the Government Gazette.
The Act provides for the establishment of the National Broadcasting and Telecommunications Commission (NBTC).
The NBTC will replace the NTC in overseeing the telecommunications and broadcasting sectors.
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Roles of MICT• Suggest and administer and manage the policy on developing information and
communication technology of the country to lead to concrete action
• Promote and encourage cooperation, domestically and abroad, in order to have efficient and comprehensive development and usage of information and communication technology in all sectors
• Promote, research into, and develop information and communication technology for increasing potential and competitiveness of information and communication technology industry of the country
• Promote and support the development of personnel performing work concerned with information and communication technology and personnel of all sectors and divisions to be able to use information and communication technology efficiently
• Follow up the performance under policy on developing information and communication technology
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National Telecommunications Commission(NTC)
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Telecommunications Business Master Plan No.2: B.E. 2551 – 2553
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Strategy for Broadband Development
Aspects Strategy and Explanation
Free and Fair Competition
Strategy 1• Promoting the entry into the telecommunications market e.g. to have the permission criteria for telecommunications services run by new technologies e.g. 3G, WiMAX
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Strategy for Broadband Development (continued)
Aspects Strategy and Explanation
Management of Telecommunications Resources
Strategy 1• Promoting the existence of telecommunications
services for adequacy and appropriateness of providing commercial telecommunications services e.g. to assign radio frequency for 3G and BWA technologies
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Strategy for Broadband Development (continued)Aspects Strategy and Explanation
Management ofTechnology and Telecommunications Infrastructure
Strategy 1• Developing measures on promoting technological
research and development that are an important base for future network and services.
Strategy 3• Promoting the expansion of telecommunications
infrastructure for broadband service and universal service
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NTC Guidelines on Promoting Broadband
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Details
Telecommunications Business Master Plan New Telecommunications Business Master Plan is underway
(in the drafting process)
Quality of Service (QoS) Mobile Broadband:
Focusing on customer service: resolving complaints and considering quality of collecting service fee
Set up QoS Benchmarking (speed test: www.speedtest.or.th)
NTC Guidelines on Promoting Broadband
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Examples of Speed Test: www.speedtest.or.th
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Details
Pricing NTC envisages wholesale price regulation (cost-based basis, fairness,
non-discrimination) to be one of the most important measures to support new entrants to have ability to compete with incumbents and increase the level of competition in the market, leading to decrease in service price and benefit consumers.
Fixed line: e.g. NTC Notification on Local Loop Unbundling Mobile: e.g. Draft NTC Notification on MVNO
NTC Guidelines on Promoting Broadband (continued)
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Details
Infrastructure Sharing Draft NTC Notification on Infrastructure Sharing: Examples:
- Determining types of infrastructure that have to be shared e.g. tower, site, attenna etc.
- Determining areas that has to share infrastructure e.g. airport, conservation area etc.
- Cost-based basisRight of Way Speed up the consideration process
NTC Guidelines on Promoting Broadband (continued)
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Details
Promoting R&D and encourage new operators Provide scholarship for R&D in hardware and software (especially
broadband applications)
USO and Last Mile Draft Strategic Plan for the Development of USO: Examples:
- Universal Broadband Access e.g. provide internet with a minimum speed of 2 Mbps to community, schools and health center in the rural area
- Universal Broadband Service e.g. expanding broadband coverage area with speed 2-10 Mbps for schools, health center etc.
NTC Guidelines on Promoting Broadband (continued)
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Details
Disaster NTC to push telecommunications operators to make backbone networks
available and ready for use both in normal and emergency situations.
NTC Guidelines on Promoting Broadband (continued)
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Ministry of Information andCommunication Technology (MICT)
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National Broadband Policy
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National Broadband Policy Cabinet agrees with National Broadband Policy on
9 Nov 2010 The government wants broadband service to be used, just
like other public utilities, and available nationwide at a reasonable price, under free and fair competition basis.
The policy will bridge the digital divide and improve the quality of life as well as strengthen the country’s competitiveness
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The Government will handle the management of the country’s telecommunications assets that had already been invested and which will be invested in the future, with maximum efficiency and for the benefits of all telecommunications operators.
Through the broadband network, people will be able to receive services in the fields of education, public health, disaster surveillance and warning, and others.
National Broadband Policy (continued)
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Examples of Goals
To create a broadband network that covers at least 80% of the population by 2015 and 95% by 2020 with quality service and at a reasonable price
To deploy a fibre-optic broadband network with a connection speed of at least 100 Mbps in major economic cities by 2020
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6 Telecommunications Operators have signed MOU on Infrastructure and Network Sharing on 22 Nov. 2010 with the purpose of supporting the National Broadband Policy.
6 Telecommunications Operators are CAT Telecom, TOT, AIS, DTAC, True Move, and Digital Phone.
The MOU will result in the efficient management of telecommunications infrastructure and network sharing and will determine guidelines and measures for the management as well as the determination of access charge.
MOU on Infrastructure and Network Sharing
Questions
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& Answers
