Thailand’s Telecommunications Act was adopted as law in 2000, but it was not until 2004 that the new telecom regulator, was finally set up and working. And since then, despite considerable progress towards liberalisation, both foreign and local companies have been frustrated by delays in reform. By 2010 a range of deregulation issues still needed to be confronted, particularly defining the roles and the restructuring of state-owned incumbents TOT and CAT.
Since 2000, the telecommunications sector has showed strong growth until 2008/2009 when it began to feel the impact of a serious economic downturn. In 2009 fixed line development has been extremely slow, despite government efforts to promote this. With mobile penetration reaching 100 per cent by early 2009, there has also been a major slowing down in demand in the mobile sector.
While there has been good growth in the broadband market over the last few years, this has been off a relatively small base, with a population penetration of less than 5 per cent at mid 2010. The Ministry of Information and Communications Technology’s efforts to promote DSL broadband services initiated in 2004 was to see the start of a potentially enhanced role for the copper network. Some of the major players have been investing significant capital into their fixed-line infrastructure in support of data communication services, and plans for a FTTH and FTTx network are currently in progress.
There are also changes afoot in the wireless broadband market. In mid 2010, the government proposed to adopt 3.9G wireless broadband technology, after five years of failure to start 3G services. Licences could be auctioned as early as September 2010, with networks launched in 2011. With mobile phones outnumbering fixed-lines by 9 to 1 in early 2010, this could significantly aid broadband penetration in the next few years.
The two incumbent telecom players in Thailand are the state-owned Telecom Organisation of Thailand Corporation (TOT) and CAT Telecom. They compete in the same service segments which include Internet, data services, VoIP and long-distance dialling. CAT owns Thailand’s international telecommunications infrastructure including its international gateways, satellite and submarine cable networks connections.
Currently however, Thailand’s largest broadband Internet provider is True Corporation, with 1 million subscribers in mid 2010. True Corporation Public Company Limited (formerly Telecom Asia) is a subsidiary of the Charoen Pokphand group. In April 2004 Telecom Asia underwent a name change and internal reorganisation into three distinct departments dealing with Home, Small and Medium Enterprises and Corporate subscribers. The company launched broadband Internet services via ADSL in early 2000. True controls Thailand’s largest cable TV provider, TrueVisions, its largest ISP, TrueOnline and its third-largest mobile operator TrueMove. True Online provides a wide range of Internet services including ADSL, Cable Modem, G.shdsl/SDSL, leased line, MPLS and Wi-Fi.
In the mobile sector, like most developing nations, Thailand’s mobile subscribers far exceed the country’s fixed-line subscribers. Despite the 2006 coup, Thailand’s mobile market approached 45 million subscribers in early 2007, with a penetration rate close to 70 per cent. By mid 2008, Thailand reported a mature 2G market with 56.2 million mobile subscribers (98.2 per cent of them GSM), representing a mobile penetration of 88.3 per cent, one of the highest in the Asia Pacific region. In Q1 2010 Thailand had 68,536,386 mobile subscribers of which 61,420,068 were pre-paid. Penetration stood at 102.44 per cent.
AIS is the leader in the mobile market with 30 million subscribers at Q2 2010, followed by DTAC (Total Access Communication) with 20.3 million subscribers at March 2010. TA Orange/True Move, owned by True Corporation, is the country’s third largest mobile operator with 15,801,000 million mobile subscribers at the end of 2009. Smaller players include Thai Mobile (a joint venture between TOT Plc and CAT Telecom) and Hutch Thailand (Hutchison CAT Wireless Multimedia (HCWM)), a joint venture between CAT Telecom and Hong Kong’s Hutchison Telecommunications International Ltd (HTIL).
AIS, DTAC and True Move utilize GSM technology. Hutch is a CDMA provider, and Thai Mobile a Digital PCS provider. Therefore, mobile phones in Thailand are easily available at competitive prices and with a wide range of options. Most of the providers have both prepaid and subscription options as choices for customers. In April 2010, DTAC increased its data network capacity by 30 per cent and completed the upgrade of its entire 10,000 base station GSM network with EDGE technology.
In an attempt to increase its direct service revenues in the mobile sector, in mid 2009, CAT’s board called for renewed discussions with Hutchison CAT Wireless Multimedia Ltd. (HCWM), with a view to merging the two operator’s CDMA networks. While Hutchison CAT is a joint venture between the two companies, the joint venture leases its network from BFTK, a wholly owned subsidiary of Hutchison Telecommunications International Ltd (HTIL). Both operators are growing but are not making inroads into the market share of Thailand’s top three mobile providers. A consolidated CDMA operator could provide a stronger proposition in the face of hostile economic conditions.
In April 2010, the government approved CAT Telecom’s plan to take full ownership of HCWM. The telco will buy out HTIL for USD 233 million, taking full control of the ‘Hutch’ network covering 25 central provinces including the Bangkok metropolitan area. CAT intends to take over the management of HCWM from HTIL and merge the unit with its wholly owned ‘CAT CDMA’ 2G/3G network covering Thailand’s other 51 provinces, to create a seamless nationwide footprint. The state-run operator has already rolled out 1xEV-DO technology across the CAT CDMA network and intends to implement similar upgrades on the Hutch network. There are just over 1 million Hutch subscribers in Thailand, whilst there were 500,000 CAT CDMA users in mid 2010. Around October 2010, CAT will offer CDMA services nationwide under the same brand.
AIS, DTAC, and Thai Mobile hold licences for 3G networks although disputes between state-owned CAT and TOT have delayed the development of 3G. At the end of 2007, Thai Mobile was the only operator using a global 3G cellular technology platform, having had the 1900 MHz spectrum set aside before the Thai regulator was established in 2004. In May 2008 AIS launched its USD 5.3 million digital 3G service along with a commercial trial in the city of Chiang Mai, with a nationwide launch in late 2008. 3G adoption rates will be slow until the regulator licenses the 2.1 MHz frequency. To date, only the 850 MHz and 900 MHz frequencies have been approved. Licensing the 2.1 GHz band will help close the digital divide between urban and rural areas. DTAC, AIS and True Move have been rolling out infrastructure in anticipation.
In January 2009 national regulator announced it would auction 2.1 GHz 3G mobile licences in Q3 2009. This was followed by announcements of infrastructure investments by major operators. TOT will spend THB 3 billion on the upgrade of its 2G network with 500 base stations in Bangkok into 3G and planned to roll-out the new service in 2009. TOT’s 2G network, operated by its 100 per cent owned ACT Mobile is leased to Thai Mobile to provide the mobile services on the 1900 MHz bandwidth. The upgrade of the 1900 MHz bandwidth under the Thai Mobile brand would complement TOT’s THB 29 billion 3G nationwide network project involving 3,800 base stations. TOT has asked AIS to share base stations to quicken its plans to launch 3G across the country within two years.
In February 2009 True Move said it will invest THB 10 billion in 3G services nationwide during 2009 and in mid 2009 began talks with a number of operators in Europe and Asia for a potential strategic partnership to fund its 3G operations. In Q1 2009, CAT Telecom also announced it will spend an additional THB 1.4 billion (USD 41 million) on the expansion of 3G CDMA2000 1xEV-DO services across the 51 provinces covered by its CAT CDMA mobile network. CAT hopes to gain 500,000 network users, up from around 300,000 at Q1 2009. CAT had earlier made an investment of THB 7.2 billion to roll-out its northern/southern provincial CDMA network, whilst its joint venture with HTIL – Hutchison CAT Wireless Multimedia (HCWM) – covers Bangkok and 25 central provinces. ‘Hutch’ branded CDMA services are offered over the central network, which is leased from HTIL subsidiary BFKT.
However, in April 2009, the Thai regulator announced that the long awaited 3G licence awards would be delayed until early 2010 due to the country’s political crisis. Previously, a public auction of four licences was expected by the end of 2009, possibly as early as October 2009. The country’s three privately owned GSM operators, AIS, DTAC and True were hoping to roll-out commercial 2.1 GHZ W-CDMA/HSPA services in H1 2010. All three private operators are trialling 3G on a small scale, whilst state-owned TOT, the only 2.1 GHz spectrum holder via its subsidiary Thai Mobile, planned to offer wholesale 3G capacity to the trio by the end of 2009. TOT launched its 3G networks in Bangkok in December 2009. Expansion of the network relies on the auction of the 3G licence. DTAC, in cooperation with concession holder CAT Telecom has launched a 3G trial in Bangkok in September 2009.
In February 2010 TOT announced that AIS will have to wait until Q3 2010 before beginning its proposed data roaming service on TOT’s 2100MHz 3G networks. AIS was planning to offer its users 3G data roaming on TOTs network for a trial period, however TOT faced an outcry from the five MVNO’s – Loxley, Samart I-Mobile, 365 Communication, IEC International and M Consultant Corporation who are committed to reselling services over the TOT 3G networks.
Following the regulator’s delay in 3G spectrum issuing, in June 2009 the AIS halted its expansion plans for its 3G network until official licensing to avoid congestion on the network. AIS has so far made an investment of THB 60 million in the 3G network. AIS had already rolled out 3G services using its existing 900MHz spectrum in Chiang Mai, Chon Buri and Hua Hin and intends to further the roll-out of its 3G service in partnership with TOT. AIS has been overhauling its digital content business specifically for 3G broadband services. AIS has set up a wholly owned subsidiary Mimo Technology Co, to handle the 3G content business and mobile software platforms. Another new subsidiary, Advanced Wireless Network, will bid for a 3G licence and operate the service.
In the wake of criticism, the regulator announced a plan in June 2010 to skip issuing 3G licences and instead auction three 3.9G licences by September 2010. Commercial services could begin as early as end 2010.
The premium data tables have been removed from this profile
As a non-subscriber, you can only see the overview for this profile.
Operator Profile subscribers get full access to:
Full profiles of over 250 broadband operator services in more than 60 countries
Includes profiles of consumer DSL, business DSL, cable modem, wholesale DSL services
Details of rollouts, services, tariffs, marketing programmes etc for each operator
Detailed operator statistics plus broadband overviews and benchmarks
Our regular in-depth reports
Most operator profiles updated every 3 months
12-month subscription covers all earlier reports and archive material
Immediate access to new material as soon as it is on the website
You can see a sample profile from the Operator Source service here.
Thank you information form
http://point-topic.com/
