Broadband Development in Thailand Prasert Aphiphunya 24 November 2010

Broadband Development
in Thailand
Prasert Aphiphunya
24 November 2010
1
Agenda
 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
2
Overview of Broadband
in Thailand
3
Broadband Penetration (%)
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
Broadband/Fixed Line
per household
1Q/2008
2Q/2008
3Q/2008
4Q/2008
1Q/2009
2Q/2009
3Q/2009
4Q/2009
1Q/2010
2Q/2010
per population
Source: Thai Telecom Industry Database, Policy and Regulatory Development Bureau, NTC
4
Broadband Subscribers in Thailand by Providers:
Second Quarter, 2010
4.44%
Others
24.24%
TT&T
TOT
40.98%
TRUE
30.34%
Source: Thai Telecom Industry Database,
Policy and Regulatory Development Bureau, NTC
Provider
No. 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
5
Assessment of the Thai Broadband Market
Summary of Country Rankings in each index
Competition
Availability
(High Score =
(High Score = Greater
Rank
Greater Competition)
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
Source: Analysys Mason, 2009
Note: 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.
6
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
7
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 content
Source: Analysys Mason
8
Supply-side interventions vs.
Demand-side Interventions
 Although addressing demand-side barriers is unlikely to result
directly in the roll-out of new broadband networks, demand-side
interventions have two key advantages
1. 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.
9
Supply-side interventions vs.
Demand-side Interventions (continued)

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.
10
Qualitative Benefits of Broadband
Benefits 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 wellbeing, social-inclusion and knowledge
 video conferencing allows new ways of working and reduces travel thus
benefiting the environment
Source: Analysys Mason
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Qualitative Benefits of Broadband (continued)
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
Source: Analysys Mason
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Qualitative Benefits of Broadband (continued)
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.
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Roles of
National Telecommunications Commission (NTC)
and Ministry of Information and Communication Technology
(MICT)
14
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
15
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)
18
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 Strategy 1
Competition • 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
Strategy 1
Telecommunications • Promoting the existence of telecommunications
Resources
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 of
Strategy 1
Technology and
• Developing measures on promoting technological
Telecommunications research and development that are an important
Infrastructure
base for future network and services.
Strategy 3
• Promoting the expansion of telecommunications
infrastructure for broadband service and universal
service
22
NTC Guidelines on
Promoting Broadband
23
NTC Guidelines on Promoting Broadband
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)
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Examples of Speed Test: www.speedtest.or.th
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NTC Guidelines on Promoting Broadband (continued)
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
26
NTC Guidelines on Promoting Broadband (continued)
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 basis
Right of Way
 Speed up the consideration process
27
NTC Guidelines on Promoting Broadband (continued)
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.
28
NTC Guidelines on Promoting Broadband (continued)
Details
Disaster
 NTC to push telecommunications operators to make backbone networks
available and ready for use both in normal and emergency situations.
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Ministry of Information and
Communication Technology (MICT)
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National Broadband Policy
31
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
32
National Broadband Policy (continued)
 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.
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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
34
MOU on Infrastructure and Network Sharing
 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.
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Questions
& Answers
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