Development of Broadband in Thailand

Development of Broadbandin Thailand

TCT Seminar on “Future Communication Technologies”

January 29, 2010Miracle Grand Hotel, Bangkok

Dr Supot TiarawutDirector

Telecommunication Research and Industrial Development Institute, Office of NTC

Contents

• 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

Denotes 2-way relationship

Source: TRIDI

TRIDI's study of Telecom investment and GDP showspositive causal relationship between telecom investment and GDP growth

Source: Global Information Technology Report 2009 – 2010, WEF

Country Individual Usage Rank2002 2003 2004 2005 2006 2007 2008

Thailand 64 65 58 61 67 70 69Viet Nam 81 79 82 91 92 92 90Singapore 9 18 12 14 10 18 7Malaysia 43 31 39 44 42 45 45Indonesia 77 84 81 83 90 97 107Philippines 57 72 70 80 77 88 91Korea 1 15 2 5 11 15 20Japan 6 12 10 19 22 22 13China 61 55 47 63 80 80 83

What’s in the Ranking?

Mobile Market

Source: NTC

-

20

40

60

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

0%

2%

4%

6%

8%

10%

Mobile Sub.64,049,329

Growth rate 2.33 %

Fixed-line Market

Source: NTC

-

2,000,000

4,000,000

6,000,000

8,000,000

4Q03 4Q04 4Q05 4Q06 4Q07 4Q08 1Q09 2Q09

กรุ�งเทพและปรุ�มณฑล ต่�างจั�งหวั�ด

BMA 3.73 M

Provinces 3.56 M

Total 7.29 M

Internet Users

Source: NECTEC

-

2,500,000

5,000,000

7,500,000

10,000,000

12,500,000

15,000,000

17,500,000

2534

2535

2536

2537

2538

2539

2540

2541

2542

2543

2544

2545

2546

2547

2548

2549

2550

2551

16,100,000

Average Growth30% per year

Average Growth30% per year

Broadband Subscribers

Source: NTC

-250,000500,000750,000

1,000,0001,250,0001,500,0001,750,0002,000,000

4Q03 4Q04 4Q05 4Q06 4Q07 4Q08 1Q09 2Q09

0%

2%4%

6%

8%10%

12%

Broadband per household 1,804,152

9.92% of Household

Broadband/Available Line

Source: NTC

0%10%20%30%40%50%60%70%80%90%

100%

4Q03 4Q04 4Q05 4Q06 4Q07 4Q08 1Q09 2Q09

Broadband line Available line

75.24%

24.76%

International Bandwidth

Source: NECTEC

-

10,000

20,000

30,000

40,000

50,000

60,000

70,0001Q

003Q

001Q

013Q

011Q

023Q

021Q

033Q

031Q

043Q

041Q

053Q

051Q

063Q

061Q

073Q

071Q

083Q

081Q

093Q

09

International Bandwidth

Thailand Market Status

• Population 65 million• Fixed-line subscribers 7.0 million• Mobile subscribers 64.7 million• Internet users 18.1 million• Broadband subscribers 1.9 million(as of Q3-09)

Technology review: in context of Thailand

• Fixed broadband– FTTX– xDSL– PLC


• FTTH– High speed access to homes and businesses– Meets customers’ needs on bandwidth growth– However,

• Fiber plant rollout is expensive• It takes times to build coverage• Existing fiber is far from customers• Not in the spotlight (of Thai operators)


• 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.


• PLC– Many trials were performed with electrical

authorities.– The technology still has many flaws.


• Wireless broadband – 3G / HSPA– WiMAX– LTE– Wi-Fi


• 3G / HSPA– Most wanted technology in Thailand– Operators are ready either to upgrade their

network to 3G or invest and build new wireless network


• WiMAX– Anticipated as a contender for 3G and LTE– Not getting support from key service providers

worldwide– Business model for WiMAX is not clear.


• 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


• 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

ADSLFTTH HSPA

Wi-Fi

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

Sources: World Telecommunication/ICT Indicator Database

12th Edition 2008

Country

Total Annual Investment in Telecommunication (Millions US$)

2003 2004 2005 2006 2007 Valu

e%

GDPValu

e%

GDPValu

e%

GDPValu

e%

GDPValu

e%

GDP

Thailand401.

00.3

508.0

0.3657.

00.4

769.0

0.4 na na

Korea1,569.0

0.35,369.0

0.85,675.0

0.710,222.0

0.8 na na

Japan20,422.0

0.523,199.0

0.524,450.0

0.517,836.0

0.4 na na

China26,782.0

1.626,559.0

1.425,601.0

1.127,768.0

1.029,969.0

0.9

Investment in Telecommunication

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

Documents

Development of Broadband in Thailand