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Development of Broadband
in Thailand
Dr Supot Tiarawut
Director
Telecommunication Research and Industrial
Development Institute, Office of NTC
TCT Seminar on
“Future Communication Technologies”
January 29, 2010
Miracle Grand Hotel, Bangkok
Contents
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Broadband vs. Economy
What’s in the ranking?
Current market status
Technology review
Issues in broadband expansion
ICT Master Plan (2009-2013)
Proposed strategy
Broadband vs. Economy
• Obama's stimulus package of US$7.2 billion
for broadband investment
• Australian government invest US$3.1 billion
in national broadband network.
Telecom investment and GDP
Denotes 1-way relationship
Source: TRIDI
Denotes 2-way relationship
TRIDI's study of Telecom investment and GDP shows
positive causal relationship between telecom
investment and GDP growth
What’s in the Ranking?
Individual Usage Rank
Country
Thailand
Viet Nam
Singapore
Malaysia
Indonesia
Philippines
Korea
Japan
China
2002
2003
2004
2005
2006
2007
2008
64
81
9
43
77
57
1
6
61
65
79
18
31
84
72
15
12
55
58
82
12
39
81
70
2
10
47
61
91
14
44
83
80
5
19
63
67
92
10
42
90
77
11
22
80
70
92
18
45
97
88
15
22
80
69
90
7
45
107
91
20
13
83
Source: Global Information Technology Report 2009 – 2010, WEF
1Q03
2Q03
3Q03
4Q03
1Q04
2Q04
3Q04
4Q04
1Q05
2Q05
3Q05
4Q05
1Q06
2Q06
3Q06
4Q06
1Q07
2Q07
3Q07
4Q07
1Q08
2Q08
3Q08
4Q08
1Q09
2Q09
Millions
Mobile Market
Mobile Sub.
64,049,329
10%
60
8%
40
6%
20
4%
2%
0%
Source: NTC
Growth
rate
2.33 %
Fixed-line Market
กรุงเทพ และปริ มณฑล
ต่างจังหวัด
8,000,000
6,000,000
Provinces 3.56 M
4,000,000
BMA 3.73 M
2,000,000
Total 7.29 M
4Q03 4Q04 4Q05 4Q06 4Q07 4Q08 1Q09 2Q09
Source: NTC
Internet Users
16,100,000
17,500,000
15,000,000
12,500,000
10,000,000
7,500,000
5,000,000
Source: NECTEC
2551
2547
2548
2549
2550
2542
2543
2544
2545
2546
2537
2538
2539
2540
2541
-
2534
2535
2536
2,500,000
Average Growth
30% per year
Broadband Subscribers
Broadband
per household
1,804,152
2,000,000
1,750,000
1,500,000
1,250,000
1,000,000
750,000
500,000
250,000
-
12%
10%
8%
6%
4%
2%
0%
4Q03
Source: NTC
4Q04
4Q05
4Q06
4Q07
4Q08
1Q09
2Q09
9.92% of
Household
Broadband/Available Line
Broadband line
Available line
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
75.24%
24.76%
4Q03
Source: NTC
4Q04
4Q05
4Q06
4Q07
4Q08
1Q09
2Q09
International Bandwidth
International Bandwidth
70,000
60,000
50,000
40,000
30,000
20,000
Source: NECTEC
3Q09
1Q09
3Q08
3Q07
1Q08
3Q06
1Q07
1Q06
3Q05
1Q05
1Q04
3Q04
1Q03
3Q03
3Q02
1Q02
1Q01
3Q01
3Q00
-
1Q00
10,000
Thailand Market Status
• Population
65
• Fixed-line subscribers
7.0
• Mobile subscribers
64.7
• Internet users
18.1
• Broadband subscribers 1.9
(as of Q3-09)
million
million
million
million
million
Technology review: in context of
Thailand
• Fixed broadband
– FTTX
– xDSL
– PLC
Technology review: in context of
Thailand
• FTTH
– High speed access to homes and businesses
– Meets customers’ needs on bandwidth growth
– However,
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Fiber plant rollout is expensive
It takes times to build coverage
Existing fiber is far from customers
Not in the spotlight (of Thai operators)
Technology review: in context of
Thailand
• xDSL
– Over 1.8 M subscribers
– 3-12 Mbps service is now available
– Not all customers can get 12 Mbps service
– Many customers only get 1 Mbps because of the
distance from DSLAM.
Technology review: in context of
Thailand
• PLC
– Many trials were performed with electrical
authorities.
– The technology still has many flaws.
Technology review: in context of
Thailand
• Wireless broadband
– 3G / HSPA
– WiMAX
– LTE
– Wi-Fi
Technology review: in context of
Thailand
• 3G / HSPA
– Most wanted technology in Thailand
– Operators are ready either to upgrade their
network to 3G or invest and build new wireless
network
Technology review: in context of
Thailand
• WiMAX
– Anticipated as a contender for 3G and LTE
– Not getting support from key service providers
worldwide
– Business model for WiMAX is not clear.
Technology review: in context of
Thailand
• LTE
– Gaining support from operators worldwide
– Equipments and handsets still expensive
– Thailand: not suitable for mass adoption in the
near future – cost of handset beyond reach of
most people
Technology review: in context of
Thailand
• Wi-Fi
– Key user of ISM and U-NII band
– Most popular indoor access mode for
broadband services
Technology review: BIG picture
• Fixed and wireless together provide access
to the same services for consumers.
Application
Wi-Fi
ADSL
FTTH
HSPA
WiMAX
Technology review: BIG picture
• Customers can use facebook, Gmail, twitter,
IM, video streaming … from their
computers, phones, ipods or other devices.
Issues in Broadband Expansion (1)
• Coverage
– Fixed broadband stands at 10% of household
– Upper limit at fixed line penetration of 11%
– Mobile networks cover many more subscribers
• Speed
– Access speed of ADSL for most sub. is limited to
3 Mbps
– Current access with 2G is limited in speed and
far from ubiquitous
Issues in Broadband Expansion(2)
• Technology
– Immediate solution: going for 3G
– For longer term
• considering FTTH roll-out as bandwidth and speed
requirement grows.
• Migration from 3G to LTE
Issues in Broadband Expansion (3)
• USO
– Limited roll-out
– Service definition changing to include
data/internet
– Challenges to expand service coverages
• IT Literacy
• Affordability
ICT Master Plan (2009-2013)
Broadband Target
• Provide at least 4 Mbps access to households in
major cities in every province
• Provide access to 50% household coverage to
the rest areas
• Provide at least 10 Mbps access to every high
school
• Provide at least 4 Mbps access to every
community’s learning/ health-care centers
Investment in Telecommunication
Total Annual Investment in Telecommunication (Millions US$)
Country
2003
2004
2005
2006
2007
Value
% GDP
Value
% GDP
Value
% GDP
Value
% GDP
Value
% GDP
Thailand
401.0
0.3
508.0
0.3
657.0
0.4
769.0
0.4
na
na
Korea
1,569.0
0.3
5,369.0
0.8
5,675.0
0.7
10,222.0
0.8
na
na
Japan
20,422.0
0.5
23,199.0
0.5
24,450.0
0.5
17,836.0
0.4
na
na
China
26,782.0
1.6
26,559.0
1.4
25,601.0
1.1
27,768.0
1.0
29,969.0
0.9
Sources: World Telecommunication/ICT Indicator Database 12th Edition 2008
Proposed Strategy
• Accelerate licensing of 3G and beyond, to
stimulate mobile internet
• Implement broadband internet to schools
with FTTX, as part of a new economic
stimulus package
• Utilize 3G/WiMax networks to provide USO,
including voice and basic data services
• Incentive and stimulus for implementing
FTTX
Thank you for your kind
attention