VoIP in Thailand and SEAVoIP in Thailand and SEA

Dr. Donyaprueth Krairit (donya@ait.ac.th)Dr. Donyaprueth Krairit (donya@ait.ac.th)

Assistant ProfessorAssistant Professor

School of ManagementSchool of Management

Asian Institute of Technology (AIT)Asian Institute of Technology (AIT)

Pathumthani, THAILANDPathumthani, THAILAND

AgendaAgenda

VoIP PotentialsVoIP Potentials Why is VoIP an important issue ?Why is VoIP an important issue ? Thailand VoIP Situation & EnvironmentThailand VoIP Situation & Environment

• Regulatory & PoliciesRegulatory & Policies• BusinessBusiness• QoS issueQoS issue• Future directionsFuture directions

Other SEA CountriesOther SEA Countries

VoIP PotentialsVoIP Potentials

Savings on long-distance callsSavings on long-distance calls Bypass monopoly providers of telecom Bypass monopoly providers of telecom

servicesservices Lack of regulatory hurdlesLack of regulatory hurdles Internet is the IP-based networks.Internet is the IP-based networks. Technically, low entry barriers.Technically, low entry barriers. Help in the concept of “universal service”??Help in the concept of “universal service”??

Why is VoIP an important Why is VoIP an important issue?issue?

Technically, a voice transmission in data Technically, a voice transmission in data packets.packets.

What regulations/policies to use to govern What regulations/policies to use to govern this new form of transmission?this new form of transmission?• Regulate as voice communicationRegulate as voice communication• Regulate as data communicationRegulate as data communication

What is voice communication, anyway?What is voice communication, anyway? Is voice communication a “basic” service?Is voice communication a “basic” service?

Telecom Providers in Telecom Providers in ThailandThailand

TOT Corporation (formerly, the Telephone TOT Corporation (formerly, the Telephone Organization of Thailand)Organization of Thailand)• Domestic voice communicationsDomestic voice communications

CAT Corporation (formerly, the CAT Corporation (formerly, the Communication Authority of Thailand)Communication Authority of Thailand)• International voice communicationsInternational voice communications• Data communicationsData communications

Regulatory FrameworkRegulatory Framework

TOT and CAT are both operators and TOT and CAT are both operators and regulators.regulators.

They give concessions based on the BTO They give concessions based on the BTO scheme to winning bidders on selected scheme to winning bidders on selected services.services.

The concessions could be of the same kind The concessions could be of the same kind due to overlapping roles and authority.due to overlapping roles and authority.

Competition: Domestic Competition: Domestic CallsCalls

Domestic long-distance callsDomestic long-distance calls• Cellular BTO providers receiving the Cellular BTO providers receiving the

concessions from both TOT and CAT offer concessions from both TOT and CAT offer competitive rates.competitive rates.

• Only VoIP service will enable TOT to compete Only VoIP service will enable TOT to compete with the concessionaires.with the concessionaires.

• Y-TEL1234 is already in service and doing Y-TEL1234 is already in service and doing well.well.

Competition: International Competition: International CallsCalls

Completely monopolized by CAT with no Completely monopolized by CAT with no competition from BTO operators.competition from BTO operators.

However, CAT is still suffered from However, CAT is still suffered from international call back services, e-mail, and other international call back services, e-mail, and other Internet-based services.Internet-based services.

CAT therefore decided to go with VoIP for CAT therefore decided to go with VoIP for international long-distance services. The service international long-distance services. The service is called “e-Phone,” flat-rate priced at about 50% is called “e-Phone,” flat-rate priced at about 50% lower than traditional calls.lower than traditional calls.

Competition: Internet Competition: Internet ServiceService

Under the monopoly domain of the CAT.Under the monopoly domain of the CAT. 18 ISP concessionaires18 ISP concessionaires Different from other BTO concessions Different from other BTO concessions

because they are based on a profit-sharing because they are based on a profit-sharing scheme, and not revenue-sharing scheme.scheme, and not revenue-sharing scheme.

Result: Highest Internet service in the SEA Result: Highest Internet service in the SEA region.region.

Specific Policies on VoIPSpecific Policies on VoIP

VoIP is prohibited.VoIP is prohibited. All Internet traffic have to go through CAT All Internet traffic have to go through CAT

international gateways.international gateways. Violators are threatened to have their Violators are threatened to have their

concessions withdrawn.concessions withdrawn.

QoS of VoIP in ThailandQoS of VoIP in Thailand

No QoS enforced both in terms of latency No QoS enforced both in terms of latency and accessibility.and accessibility.

TOT VoIP domestic service claims to have TOT VoIP domestic service claims to have delay comparable to that of mobile phones.delay comparable to that of mobile phones.

CAT VoIP international service still faces CAT VoIP international service still faces problems about accessibility and latency.problems about accessibility and latency.

Future Directions Future Directions (Thailand)(Thailand)

The establishment of the National The establishment of the National Telecommunications Committee (NTC) as Telecommunications Committee (NTC) as an independent regulatory body.an independent regulatory body.

The Telecommunications Act is in the The Telecommunications Act is in the approval process from the Parliament.approval process from the Parliament.

Long-term policy goal is set for Long-term policy goal is set for liberalization.liberalization.

Future of Internet in Future of Internet in ThailandThailand

EdNetEdNet• Inter/Intranet link for 10,000 schoolsInter/Intranet link for 10,000 schools

MOI network expansionMOI network expansion• E-Citizen projectE-Citizen project

TOT VoIP Phase 3TOT VoIP Phase 3

VoIP in Other SEA VoIP in Other SEA CountriesCountries

Malaysia, the Philippines, and Singapore: Malaysia, the Philippines, and Singapore: VoIP licensesVoIP licenses

Cambodia and Laos: Cambodia and Laos: • Available but illegalAvailable but illegal• Cambodian military police have detained 20 Cambodian military police have detained 20

foreigners on an alleged IDD bypass scam foreigners on an alleged IDD bypass scam using an unlicensed IDD gateway.using an unlicensed IDD gateway.

Vietnam: Vietnam: • The Posts and Telematics Ministry has The Posts and Telematics Ministry has

suspended the sales of FPT Telecom’s Internet suspended the sales of FPT Telecom’s Internet phone card service.phone card service.

• Allow only outbound Internet-based calls from Allow only outbound Internet-based calls from computers to computers and from computers to computers to computers and from computers to telephones while prohibiting inbound Internet telephones while prohibiting inbound Internet phone calls.phone calls.

VoIP in Other SEA VoIP in Other SEA CountriesCountries

QoS of VoIP in SEAQoS of VoIP in SEA

Only Singapore has clear QoS results onOnly Singapore has clear QoS results on• System AccessibilitySystem Accessibility• Service ActivationService Activation• Number of complaintsNumber of complaints

Philippines ask for QoS but does not Philippines ask for QoS but does not enforce.enforce.

Thailand has informal user surveys.Thailand has informal user surveys.

Future of VoIP in SEAFuture of VoIP in SEA

Move toward enterprise VoIP and Private Move toward enterprise VoIP and Private leased-line infrastructureleased-line infrastructure

IP telephony gateway over conventional IP telephony gateway over conventional PABXPABX

Consolidation?!?Consolidation?!?