MICT’s View on The National Broadband Plan

4 December 2010

MICT

2

Current Background

3

Thailand Falling Global ICT Ranking & Network Readiness

Rank2008-2009 Economy

Score2008-2009

Rank2007-2008

Score2007-2008 Change

36 Barbados 4.38 38 4.26 é37 Bahrain 4.38 45 4.13 é38 Tunisia 4.34 35 4.33 ê39 Chile 4.32 34 4.35 ê40 Saudi Arabia 4.28   48 4.07 é41 Hungary 4.28 37 4.28 ê42 Puerto Rico 4.23 39 4.25 ê43 Slovak Republic 4.19 43 4.17 è44 Jordan 4.19 47 4.08 é45 Italy 4.16   42 4.21 ê46 China 4.15 57 3.90 é47 Thailand 4.14 40 4.25 ê48 Latvia 4.10 44 4.14 ê49 Croatia 4.09 49 4.06 è50 Oman 4.08   53 3.97 é51 Mauritius 4.07 54 3.96 é52 South Africa 4.07 51 4.05 ê53 Jamaica 4.03 46 4.09 ê54 India 4.03 50 4.06 ê55 Greece 4.00   56 3.94 é56 Costa Rica 3.99 60 3.87 é57 Kuwait 3.98 52 4.01 ê58 Romania 3.97 61 3.86 é

Asia Pacific Ranks

4 Singapore12 Hong Kong13 Taiwan17 Japan28 Malaysia46 China47 Thailand54 India70 Vietnam83 Indonesia85 Philippines

Source: WEF Global IT Report

4

5

ICT Vision

6

ICT Master Plan envision “Smart Thailand 2020”

7

Vision-Obligation-ObjectiveVision

“Smart Thailand”

Obligation

1. Improvement in Human Resource and sufficient consumption

2. High speed ICT Networking

3. Develop managment system of ICT for Good Governance

Objective1. Increasing quantity and potential of

ICT people

2. To build good Governance in ICT management

3. To support the adjusting of production's structure

4. To build the strength of community and individual

5. To build the potential of business and ICT industry

50% of Thais to have Information Literacy by 2013

Increase ICT industry contribution to GDP

Enhance ICT Readiness, e-Government Performance in international

rankings

8

Highlight Four Tangible National Benefits

•Connecting 30,000 schools and local community education centers

e-Education

•Connecting 15,000 hospitals and healthcare centers

e-Healthcare

•Connecting all 76 provinces and all 10,000+ local communities

e-Government

e-Agriculture • Connecting 70% farmers with useful information (ie. weather, market, loan)

9

Highlight Thailand National Broadband Policy Expectation

•Connecting 80 % of Thai Population

2015

•Connecting 95 % of Thai Population

2020

e-Agriculture

10

Number of Broadband Users in Thailand

•Thailand is a transitional market for broadband.

1.5

3

4

5

6

0

1

2

3

4

5

6

2007 2008F 2009F 2010F 2011F

Number of Broadband Usersmillions

Broadband

11

PC Penetration

0

5

10

15

20

25

30

35

02 03 04

Number of Households with Computer per 100 households

Overall

BKK

Central

North

Northeast

South

Source: National Statistical Office

12

Comparison of Broadband Price

Source: MICT, Japan

6.565.895.835.81

4.423.98

3.533.36

3.252.71

2.562.21

1.271.15

0.250.09

0 2 4 6 8

NorwayAustria

ThailandDenmarkGermany

IsraelUnited States

NetherlandCanada

New ZealandMacao (China)

SingaporeHong Kong …

BelgiumKoreaJapan

Broadband Charge per 100 kbps(USD)

13

Overall Thailand Healthcare Landscape Has Less Than 23% Data Connectivity

100%

0%

Perc

en

t D

ata

C

on

necti

vit

y

95%

51%

24%

โรงพยาบาลศูนย� และ โรงพยาบาลทั่��วไป (92 of 92 with Fiber Optic connectivity)

โรงพยาบาลชุ�มชุน (665 of 697 with ADSL connectivity)

สาธารณส�ขอำ�าเภอำ (499 of 984 with ADSL connectivity)

สถาน!อำนาม�ย (1,900 of 8,042 with 75% ADSL & 25% ipStar connectivity)

Other 4,000 locations Data Not Available

Only 22.5% overall public healthcare locations with data connectivity (3,156 of 14,000 )

14

15

16

17

Example: HealthConnect with “REAL” implementation in IndiaLinking doctors in major cities to rural clinics (full devices integration)

Patient full information with VDO link Rural doctor performs basic check-up All devices link to PC ie. Ultrasound

All devices link to PC ie. EKG heart rate Including other information such as LAB, X-ray and doctor’s memo and instruction

18

High Definition VDO conference with “real life” experience for normal doctor consultation & check-up

Optional HealthConnect Pod stand-alone for future self-service in public/commercial area

19

Key Concerns

20

Plus Additional Benefits…

Lowering

• Digital divide gap• Duplicated Investment• ICT related pricing

Increasing

• Broadband availability• Biz Level playing field• More new ICT services• Economy(1) and jobs• Thailand ICT ranking

Solving

• 2G concession issues• 3G licensing• TOT & CAT future• Environment thru

conferencing & clouds

Note: (1) according to WorldBank and Harvard studies = 1% GDP increase for every 10% increase of Broadband

21

Key to Success

Government Effort- Stimulation of Demand

(Skill improvement, Local Contents, Low-Price PC Project)

Private Efforts

Government Initiatives- Promotion of Supply

(Encourage facility-based competition, License New tech., Incentive Regulations

Private Efforts

DemandFor

Broadband

Factor Effecting Demand- Attractive Local

Contents- Cheaper PC- Skill &

Experience- Language- Income

Market Competition- Introduce new

tech. platform- Local Loop

Unbundling- Incentive &

Asymmetric Regulations

- Incentives to Invest

Supply of Internet Access

- Service

- Infrastructure

- Access LinePro

life

rati

on

of

Bro

ad

ban

d

22

Sharing Common Infrastructure Promotes “Real” CompetitionsNew & Small Services Providers with Same Services & Cost Structure

Different Elements of Telecommunications:1. Infrastructure = Superhighway/Lanes2. Wholesale = Different Vehicles3. Retail Services = Drivers/Goods4. MICT/NTC = Law enforcements

22

1

4

2

3

23

Thank Youmethini.t@mict.mail.go.th

Related Useful Websites:

MICT - Ministry of Information and Communication Technologyhttp://www.mict.go.th

NTC - National Telecommunication Commission of Thailandhttp://www.ntc.or.th