Summary
After almost a decade of strong growth in its telecom sector, Thailand was starting to feel the impact of a serious economic downturn in 2008/09. By early 2009, there had been a major cooling in demand for mobile services, mobile penetration having reached 100% by that stage. Fixed-line development was virtually non-existent, despite the government's keenness in promoting this. There had been some interesting activity however in the broadband Internet market but this was essentially high growth off a relatively small base. In the wider telecom sector, there was a feeling that a loss of direction was creeping into the market.
If any one thing characterises the Thai telecom industry it is probably the stop-start approach to sector reform and re-regulation. An important step was taken with the Telecommunications Act being adopted as law back in 2000, but the government had moved slowly on its implementation. Most critically it was not until late 2004 that the mooted new telecom regulator, the National Telecommunications Commission (NTC), was finally set up and working. Since then some good work has been done in the regulatory area; however, both foreign and local companies have been frustrated by the delays in reform and the uncertainty that these delays create has been a headache for all concerned.
By 2009 a range of deregulation issues still needed to be confronted. One of the big structural reform issues-the defining of the roles and the restructuring of the Telephone Organization of Thailand (TOT) and the Communications Authority of Thailand (CAT)-was still demanding urgent attention. In fairness to the NTC, though, the regulatory environment has not had a sustained period of consistent policy since the commission was established.
After the NTC initially commenced operations, it inevitably took time to get up to speed. Naturally, too, it was looking for consistent direction from the government. But this has not been forthcoming. First, the military overthrew the Shinawatra government in late 2006; then the interim government that followed was replaced by an elected government in late 2007. The new Samak government was then dismissed and the ruling People's Power Party dissolved by decisions of the constitutional court just 12 months later.
In early 2009, a replacement government was formed with Mr Abhisit Vejjajiva of the Democrat Party as prime minister. While the Abhisit government appeared to be presenting a stabilising force for the country at the moment, there was not much positive news for the telecom sector. The appointment of a politically weak minister, for example, suggested that Information & Communications Technology was simply not a high priority portfolio for this government. In the meantime, one of the urgently needed reforms, the long-awaited restructuring of the two state-owned telcos, TOT and CAT, continued to be postponed.
Thailand's ongoing political instability has had considerable negative impact on:
* the local economy;
* the administration of the country; and
* investor confidence.
The global financial crisis of 2008/09 has simple made the situation all the more depressing. Despite all the difficulties, however, Thailand's telecom sector somehow continues to display a surprising amount of optimism and energy.
Key highlights:
* Thailand's mobile market had reached 63 million subscribers by March 2009, just under the 100% penetration mark.
* After more than eight straight years of strong growth, the annual increase in the mobile subscriber numbers had eased to about 15% coming into 2009.
* The broadband Internet market in Thailand saw another year of vigorous subscriber growth in 2008, running at an annual rate of around 60%; this was on top of a similar surge in 2007; all the signs were suggesting that this would continue through 2009.
* While demand for broadband services was finally on the move in Thailand, it was happening from a relatively small base; overall broadband penetration still remained low (3% in 2009) and there has been not widespread embracing of IT in the country.
* The fixed-line market was showing no signs of revival, with growth close to zero; this has been despite a suggestion that the demand for broadband services would provide a fresh momentum in the copper network.
* Thailand's telecom regulator has taken positive steps to reform the Internet segment, most notably opening up the Internet gateway market; however, there was much more restructuring needing to be done on this front.
Thailand-key telecom parameters-2008-2009
Category | 2008 | 2009 (e) |
Fixed-line services: | | |
* Total number of subscribers (million) | 7.1 | 7.2 |
* Annual change | 1% | 1% |
* Fixed-line penetration (population) | 11% | 11% |
Internet: | | |
* Total number of subscribers1 (million) | 5.5 | 6.0 |
* Annual change | 10% | 9% |
* Internet subscriber penetration (population) | 9% | 9% |
Mobile services: | | |
* Total number of subscribers (million) | 62.0 | 67.5 |
* Annual change | 17% | 9% |
* Mobile penetration (population) | 97% | 104% |
Notes: 1Estimates for both 2008 and 2009.
Data in this report is the latest available at the time of preparation and may not be for the current year.
Table of Contents
1. Key Statistics
2. Telecommunications Market
2.1 Overview of Thailand's telecom market
2.2 Political turmoil and its impact on the telecom sector
2.3 Analysis: Thailand and the Global Financial Crisis-June 2009
3. Regulatory environment
3.1 Regulatory reform
3.1.1 Background
3.1.2 Telecommunications Act 2001
3.1.3 Ministry of Information and Communications Technology (MICT)
3.1.4 National Telecommunications Commission (NTC)
3.1.5 Concession conversion
3.1.6 Taxation
3.1.7 Privatisation
3.1.8 Foreign ownership
3.1.9 Interconnection charges
3.1.10 National numbering scheme
3.1.11 Internet gateways
3.1.12 Voice over Internet Protocol (VoIP)
3.2 Regulatory developments
3.2.1 Third generation (3G) mobile licences
3.2.2 WiMAX
3.2.3 Registration of prepaid mobile services
3.2.4 Power utilities
3.3 Regulatory disputes
4. Fixed network market
4.1 Market overview
4.1.1 Historical background
4.2 National networks
4.2.1 Development of Build-Transfer-Operate (BTO) concessions
4.2.2 National fibre optic network
4.2.3 Universal Service Obligation (USO) fund
4.3 International networks
4.4 Fixed network operators in Thailand
4.4.1 Major telecom operators by market segment
4.4.2 TOT Corp
4.4.3 CAT Telecom
4.4.4 Proposed CAT/TOT merger
4.4.5 True Corp
4.4.6 Thai Telephone &Telecommunications (TT&T)
5. Telecommunications Infrastructure
5.1 National telecom network
5.1.1 Overview
5.1.2 Fixed-line network
5.1.3 Next Generation Network (NGN)
5.1.4 Public payphones
5.1.5 Fibre-to-the-Home (FttH)
5.2 International infrastructure
5.2.1 Submarine cable networks
5.2.2 Submarine cable outages
5.2.3 Terrestrial cable networks
5.2.4 Satellite networks
6. Internet market
6.1 Overview
6.1.1 Internet statistics
6.1.2 Analysis: Internet censorship in Thailand-August 2009
6.2 ISP market
6.2.1 Overview
6.2.2 Market restructuring
6.3 Major ISPs
6.3.1 True Internet (formerly Asia Infonet)
6.3.2 CS Loxinfo
6.3.3 Jasmine Internet (JINet)
6.3.4 Internet Thailand Co
6.3.5 KSC Commercial Internet
6.3.6 Pacific Internet
6.4 Thailand's Internet gateway exchanges
6.4.1 Overview
6.4.2 Opening up of gateway market
6.5 Regulatory issues
6.6 Voice over Internet Protocol (VoIP)
6.6.1 ‘Grey market'
6.6.2 National VoIP services
6.6.3 International VoIP services
7. Broadband market
7.1 Overview
7.1.1 Broadband statistics
7.2 Background to development
7.2.1 TOT initiative
7.2.2 Response by other players
7.2.3 Opening up of international Internet gateway market
7.3 Digital Subscriber Line (DSL)
7.4 Cable modem
7.5 Internet via satellite
7.6 Wireless Internet
7.6.1 Early wireless Internet access services
7.6.2 WiFi
7.6.3 WiMAX
7.7 Broadband over Powerline (BPL)
7.8 Major broadband operators
7.8.1 True Online
7.8.2 TOT
7.8.3 CAT
7.8.4 Triple T Broadband/Jasmine
7.8.5 Advance Datanetwork Communications (ADC)
8. Broadcasting
8.1 Overview
8.2 Regulatory environment
8.2.1 Proposed National Broadcasting Commission (NBC)
8.2.2 Broadcasting Act 2008
8.2.3 Other regulatory matters
8.3 Digital TV
8.4 Internet Protocol television (IPTV)
8.4.1 Advanced Datanetwork Communications Ltd (ADC)
8.4.2 True
8.4.3 TT&T
8.5 Free-to-Air (FTA) TV
8.5.1 Channel 3
8.5.2 Channel 7
8.5.3 TPBS (formerly iTV)
8.5.4 MCOT
8.6 Pay TV
8.6.1 True Visions (formerly United Broadcasting Corporation (UBC))
8.7 Satellite TV
8.7.1 PTV
9. Mobile Communications
9.1 Overview of Thailand's mobile market
9.2 Mobile statistics
9.3 Competition
9.4 Regulatory developments
9.4.1 Mobile Number Portability (MNP)
9.4.2 Mobile Virtual Network Operator (MVNO)
9.4.3 Interconnection arrangements
9.4.4 National security
9.5 Mobile technologies
9.5.1 CDMA
9.5.2 PCN services
9.5.3 General Packet Radio Service (GPRS)
9.5.4 Enhanced Data for GSM Evolution (EDGE)
9.5.5 Third Generation (3G) mobile
9.6 Major mobile operators
9.6.1 Overview
9.6.2 Operating environment
9.6.3 Market statistics
9.6.4 Advanced Info Service (AIS)
9.6.5 DTAC
9.6.6 True Move
9.6.7 Hutchison CAT
9.6.8 Thai Mobile
9.6.9 CAT Telecom
9.7 Mobile voice services
9.7.1 Prepaid
9.8 Mobile data services
9.8.1 Overview
9.8.2 Short Message Service (SMS)
9.8.3 Multimedia Message Service (MMS)
9.8.4 Global Positioning System (GPS) service
9.9 Mobile content and applications
9.9.1 Mobile music
9.9.2 Mobile TV
9.9.3 Gaming
10. Forecasts
10.1 Overview
10.2 Forecasts-fixed lines-2007-2008; 2013; 2018
10.3 Forecasts-Internet subscribers-2007-2008; 2013; 2018
10.4 Forecasts-mobile subscribers-2007-2008; 2013; 2018
10.5 Notes on scenario forecasts
11. Glossary of Abbreviations
Table 1-Country statistics Thailand-2009
Table 2-Telephone network statistics-2009
Table 3-Internet user statistics-2009
Table 4-Broadband statistics-2008
Table 5-Mobile statistics-June 2009
Table 6-National telecommunications authorities
Table 7-Fixed-line subscribers and market share by operator-2008
Table 8-Public payphones-2008
Table 9-TOT's total revenues-2005-2009
Table 10-TOT's fixed-line subscribers-2005-2009
Table 11-Fixed lines and teledensity-1995-2009
Table 12-Fixed-line subscribers by operator-2008
Table 13-Public payphones in service-2004-2009
Table 14-Public payphones by provider-2008
Table 15-Internet users-1996-2009
Table 16-Internet subscribers-1996-2009
Table 17-International Internet bandwidth-2000-2009
Table 18-True's Internet subscribers-2003-2009
Table 19-Broadband subscribers-2001-2009
Table 20-Broadband subscribers and households-2009
Table 21-Major broadband players and subscribers-2008
Table 22-DSL subscribers-2002-2009
Table 23-True's broadband subscribers-2001-2002; 2004-2009
Table 24-TOT's broadband subscribers-2007-2009
Table 25-TOT broadband Internet ports in service-2008
Table 26-Triple T Broadband's subscribers-2004; 2007-2009
Table 27-Key broadcasting statistics-2008
Table 28-Pay TV subscribers-1996-2002
Table 29-Pay TV subscribers by platform-2002-2009
Table 30-True Visions/UBC subscribers-1998-2009
Table 31-Mobile subscribers-1998-2009
Table 32-Mobile services revenue and ARPU-1998-2009
Table 33-Mobile operators, subscribers and market share-March 2009
Table 34-Mobile operators, subscribers and annual change-March 2009
Table 35-ARPU (postpaid, prepaid, blended) for major mobile operators-2007-2008
Table 36-Mobile operators, subscribers and annual change-March 2009
Table 37-Mobile operators, subscribers and market share-March 2009
Table 38-ARPU (postpaid, prepaid, blended) for major mobile operators-2007-2008
Table 39-AIS: subscribers and market share-2004; 2007-2009
Table 40-AIS: mobile subscribers and ARPU (postpaid and prepaid)-June 2009
Table 41-DTAC: subscribers and market share-2002-2003; 2005-2009
Table 42-DTAC: mobile subscribers and ARPU (postpaid and prepaid)-2008
Table 43-True Move: subscribers and market share-2004-2009
Table 44-True Move: mobile subscribers and ARPU (postpaid and prepaid)-2008
Table 45-Hutchison CAT: subscribers and market share-2003; 2007-2009
Table 46-Thai Mobile Telecom's subscriber growth-2002-2009
Table 47-CAT Telecom's subscriber growth-2006-2009
Table 48-Mobile subscribers-prepaid and postpaid-2006-2008
Table 49-Prepaid subscribers & percentage of subscriber base by operator-June 2007
Table 50-Forecast fixed line subscribers and penetration rate-2007-2008; 2013; 2018
Table 51-Forecast Internet subscribers and penetration rate-2007-2008; 2013; 2018
Table 52-Forecast mobile subscribers and penetration rate-2007-2008; 2013; 2018
Exhibit 1-Sale of Shin Corp to Temasek
Exhibit 2-Thailand's foreign ownership legislation for telecom sector
Exhibit 3-Key service concessions
Exhibit 4-Major operators by market segment
Exhibit 5-TOT's troubled business processes
Exhibit 6-True Corp's major shareholders-January 2009
Exhibit 7-Thaicom's satellite network-2009
Exhibit 8-Licensed ISPs in Thailand-2009
Exhibit 9-ISPs operated by telecom companies
Exhibit 10-Singapore's Temasek acquires Shin Corp-and CS Loxinfo-2006
Exhibit 11-KSC's shareholder battle
Exhibit 12-IlG operators in Thailand-2009
Exhibit 13-Meaningful Broadband Working Group-2009
Exhibit 14-FTA TV Broadcasters
Exhibit 15-Major mobile operators and foreign shareholders-2009
Exhibit 16-Revised structure of Hutchison CAT joint venture
