Beruflich Dokumente
Kultur Dokumente
Final Report
By Local Consultant
April 2011
World Bank Thailand MICT Broadband Study
Final Report By Local Consultant
Contents
1. Executive summary 1
2. Introduction 1
3. Literature Review 2
3.1 Thailand Macro-economic Factors.. 2
3.2 Overview of broadband in Thailand (Source: NTC). 3
3.2.1 Definition of broadband... 3
3.2.2 Regulatory framework for broadband services.... 3
3.2.3 Licensing regime 3
3.2.4 Wholesale broadband regulations 7
3.2.5 Rights of way 8
3.3 Broadband technologies in use in Thailand (Source: NTC).. 9
3.3.1 Fixed broadband services.. 9
3.3.2 Wireless broadband services.... 9
3.4 Internet and telephone coverage and usage in Thailand.. 10
3.4.1 Fiber optic network... 10
3.4.2 Mobile phone coverage 10
3.4.3 Fixed telephone coverage.. 10
3.4.4 High-speed Internet signal coverage 10
3.4.5 Telephone and Internet Users Behavior. 11
3.5 Market shares information.. 12
3.5.1 Thai broadband market 12
3.5.2 Mobile Services Market. 13
3.5.3 Internet Market 14
3.6 Institutional structures 16
1. Executive summary
The objective of Thailand rural broadband infrastructure policy project
This consultancy is part of a broader activity which has the objective of assisting the
Thailand MICT in preparing a rural broadband development strategy that involves (a) taking
stock of the deployment of broadband networks in rural areas, including in particular access by
priority groups such as medical clinics and schools; (b) identifying relevant examples of
approaches to rural broadband deployment and access from international experience,
including successful innovative approaches to promote efficient private sector participation in
the effective promotion of rural broadband development; and (c) developing concepts for
programming and/or policy initiatives for Thailand. The objective of this consultancy is to
contribute to the overall project on Thailand Rural Broadband Infrastructure Development by
providing expert knowledge on relevant Thailand-specific factors.
The Local Consultant therefore provides information such as Thailand institutional factors
(MICT, TOT, CAT, NTC etc.), rural broadband development opportunities and description of
how broadband is currently provided in rural areas of Thailand by region, by operator, and by
technology as well as views on the future broadband market structure in Thailand, problem of
broadband by allocation of spectrum, establishment of National Broadcasting and
Telecommunication Commission (NBTC) and stock of current access to ICT in rural areas of
Thailand in this report. This report has to support the World Bank/MICT study on strategic
options for development of rural broadband policy for Thailand
2. Introduction
This document is intended to serve as the report for the World Bank, The purpose of this
report is overview of Thailand Macro-economic Factors (Heading 3.1), Broadband in Thailand
(Heading 3.2), Broadband technologies in use in Thailand (Heading 3.3), Internet and
telephone coverage and usage in Thailand (Heading 3.4) and Market shares information
(Heading 3.5). In addition, this report should provide institutional structures of the
telecommunications in Thailand (Heading 3.6), NTC-3G licensing process and roll-out
requirements and eligibility criteria for licensees (Heading 3.7), Radio frequency that can be
used for 3G or WiMAX (Heading 3.8), current situation and trend of 3G in Thailand (Heading
3.9), policy and plans of Thai government in rural broadband development (Heading 3.10) and
major stakeholders in Thailand telecommunication (MICT, CAT, TOT, NTC, etc.)
World Bank Thailand MICT Broadband Study
2
Final Report By Local Consultant
3. Literature Review
3.1 Thailand Macro-economic Factors
Thailand had an estimated population of 62.9 million as at January 2009, dispersed
over an area of approximately 514,000 sq km. The country is divided into 75 provinces, plus
Bangkok (a special governed district) which are geographically grouped into five regions.
Bangkok, with a population of around 5.7 million, is the largest city and also the national
centre of politics, commercial, industrial and cultural activities.
Thailand has experienced growing urbanization in recent years, with the urban
population growing from 31% of the total population in 2000 to the current 33%. Despite this
trend the majority of the Thai population still lives in rural towns with less than 10,000 people.
The population density in Thailand is only greater than 500 people per km2 in the districts in
and around Bangkok and in a few larger cities and concentrated island communities.
Additionally, the majority of people living in these areas of low population density are
farmers with incomes reliant upon subsistence agriculture. The provinces with higher levels of
wealth, as measured using gross provincial product (GPP), tend to be the areas in and around
larger towns and cities.
The combination of relatively high deployment costs (due to low population density)
and relative inability of end-users to afford services means that telecoms network investment is
uneconomical in many rural areas of Thailand.
Thailand has an organized education system comprising of kindergartens, primary
and secondary schools and numerous vocational colleges and universities. Education is
compulsory up to and including Grade 9, and the government provides free education though
to Grade 12. As a result, 92.6% of the population is literate. This high literacy rate forms an
important base for enabling information communications technology (ICT) literacy in the future.
Most of the current student generation is computer literate, although figures from the World
Bank estimate that, in 2007, there were only 7 personal computers in use per 100 people
which will act as a brake on potential broadband household penetration.
From 2002-2004, Thailands economy was one of East Asias best performers with
an average of 6% annual GDP growth in real terms. However, this slowed to 4.9% in 2007
and 3.6% in 2008, resulting from the effects of the worldwide economic slowdown. Thailands
GDP ended 2008 at USD273 billion (THB9090 billion), equivalent to around USD4300
(THB143 176) per capita.
World Bank Thailand MICT Broadband Study
3
Final Report By Local Consultant
In the first quarter of 2010, the GDP expanded 12% on the same period last year,
the highest quarterly growth rate in 15 years since the second quarter of 1995 when the
growth rate was 12.3%.
In the first quarter of 2010, exports grew by a robust 16.2% year on year and imports
expanded by 31.4% year on year. Overall net exports detracted 2.4 percentage points from
growth following a 7% contribution in the fourth quarter of 2009.
The National Economic and Social Development Board (NESDB) has maintained the
2010 economic growth forecast at 3.5% to 4.5%, that if without the riot, the gross domestic
product (GDP) could expand 6% to 7% this year.
3.2 Overview of broadband in Thailand (Source: NTC)
3.2.1 Definition of broadband
There is no single agreed definition for broadband in terms of the
technology or data speeds offered, though there is a general consensus that broadband refers
to high-speed communications that are continuously available.
In the context of NTC, broadband refers to a data service supporting at least
2Mbit/s downstream and 384kbit/s upstream. This definition of broadband is consistent with
the universal service commitment set out in the Digital Britain report.
3.2.2 Regulatory framework for broadband services
Thailands constitutional mandate stipulates that national telecommunication
infrastructure providers are to be owned by the state. As such, TOT was established in 1954
to provide domestic telephony services and CAT was established in 1976 to provide
international telephony services, postal services and other non-voice telecom services. Both
organizations initially held a pure monopoly in the provision of national and international
telecoms services respectively.
3.2.3 Licensing regime
In an effort to reform the telecommunication system and allow participation
by the private sector, Thailand introduced a unique Build-Transfer-Operate (BTO) model in the
late 1980s. This allowed private-sector service providers to offer services, but only under the
terms of a BTO concession arrangement with the government. This required private-sector
service providers to share revenue with state-owned telecoms organizations. TOT has entered
into 11 such concession arrangements and CAT holds 10.
World Bank Thailand MICT Broadband Study
4
Final Report By Local Consultant
By June 2009 the NTC had issued a total of over 100 Internet service
licenses. TT&T and True Corp have taken advantage of this new regime to reduce their
revenue-sharing obligations to TOT under the terms of their respective BTO agreements. In
June 2006, TTTB became the first privately-owned Thai operator to be granted a Type 3
license to operate a fixed network. The 20-year nationwide concession enables TTTB to offer
a full range of voice, Internet and data services.
International Internet gateway (IIG) licenses were also awarded to True
Internet Gateway (a True Corp subsidiary), Advanced Datanetwork Communication (ADC, a
joint venture of AIS and TOT) and CS Loxinfo in 2006, ending CATs monopoly on the
international connectivity market. These five-year IIG awards allow the leasing of international
bandwidth from foreign operators to provide services to local ISPs. However, CAT still retains
ownership of all of the international cable landing stations. In addition, List of all International
Internet Gateways operators in Thailand as follow
From the above table. All operators have created their own networks by
True Internet, TT & T, Advance Datanetwork Communications, CS Loxinfo and Super
Broadband Network has been wiring fiber itself. The level of access. International. Connected
to Malaysia, while the CAT project has connected the cable under the water by themselves in
a manner that made CAT TOT there has been a monopoly for this project as well.
True Corporation and Shin Corporation were granted Type II International
Internet Gateway and Internet Exchange Service License from the NTC (National
Telecommunication Committee) in 2005. CAT Telecom holds the largest share of the market.
World Bank Thailand MICT Broadband Study
7
Final Report By Local Consultant
The fiber optic network between Thailand, were the main routes, including
Route 7.
Satun-Malaysia (TOT)
Patani-Malaysia (TOT)
ACPN (Via Phetchaburi
Province.)
SEA-ME-WE3 (From Satun)
SEA-ME-WE4 (From Satun)
FLAG (From Satun)
FLAG (From Songkhla)
Total 110 Gbps
through the identification and removal of existing unused cable) or alternative deployment
approaches (e.g. underground ducting) will need to be investigated.
The February 2009 Notification of the National Telecommunications
Commission Re: Criteria and Procedures for Exercising Rights-of-way in Erecting Poles,
Laying Ducts or Cables, and Installing any Accessories for Providing Telecommunications
Services (the Notification) granted a telecoms licensee the right to access poles and ducts of
public utility providers for the purposes of laying lines or installing associated equipment.
Under the Notification, the public utility provider is able to charge a necessary compensation,
and even refuse access if there is a lack of capacity, safety standards, system reliability or for
engineering reasons or any other cases prescribed by the NTC. If the request is refused or the
price for access is unreasonably high, the telecoms licensee may submit a petition for the
consideration of the NTC. In the case of a pricing dispute, the NTC can set the charge based
on incremental cost.
At present EGAT does not allow rights of way access to its poles to
telecoms operators, as any disruption to the power network that could be caused by civil work
would have wide-ranging effects on national power distribution. MEA currently allows rights of
way access to its poles to state-owned enterprises such as TOT and CAT, as well as TOTs
BMA concessionary, True Corp, at a negotiated price. PEA allows rights of way access to its
poles to any operator willing to pay an access fee.
3.3 Broadband technologies in use in Thailand (Source: NTC)
3.3.1 Fixed broadband services
The majority of broadband Internet access in Thailand is provided over
conventional (copper) fixed telephone lines, although fibre and hybrid fibre-coaxial (HFC) lines
are available in some areas. A variety of technologies are used to deliver broadband access
over fixed lines, and DSL technology (usually in the form of ADSL) is the most widely used.
The speed of these fixed-line Internet broadband offerings ranges between
512kbit/s and 8Mbit/s downstream (i.e. data flowing towards the end-user) and between
512kbit/s and 1Mbit/s upstream (i.e. data flowing from the end-user). The monthly cost of
subscribing to an unmetered plan for these services varies from THB590 to THB5,200.
3.3.2 Wireless broadband services
While broadband services initially developed as a fixed-line phenomenon,
recent technological developments have seen the emergence of a variety of options for
providing broadband access via wireless technology. Developed markets have recently seen
World Bank Thailand MICT Broadband Study
10
Final Report By Local Consultant
an increase in the take-up of broadband services offered over 3G telecoms networks, and also
via WiMAX technology. In countries without an extensive fixed network, wireless broadband
technologies can serve a dual role: both as a provider of mobile broadband services (i.e.
broadband on the move) and as a provider of broadband services to fixed locations such as
homes or offices.
3.4 Internet and telephone coverage and usage in Thailand
According to NTC data, we can summarize the internet and telephone services as
follows:
3.4.1 Fiber optic network (Total : 110 Gbps )
- Satun Province Malaysia (TOT)
- Pattani Province Malaysia (TOT)
- ACPN (Via Phetchaburi Province)
- SEA-ME-WE3 (From Satun Province)
- SEA-ME-WE4 (From Satun Province)
- FLAG (From Satun Province)
- FLAG (From Songkhla Province)
Mobile phone, fixed telephone coverage, and high speed internet by AIS,
DTAC, True TOT and CAT are shown below
3.4.2 Mobile phone coverage
- Coverage : 63%
- Coverage does not include the forest : 93 %
- Population coverage : 87%
3.4.3 Fixed telephone coverage
- Coverage : 48 %
- Coverage does not include the forest : 71 %
- Population coverage : 75%
3.4.4 High-speed Internet signal coverage
- Coverage : 13 %
- Coverage does not include forests : 19%
- Population coverage : 37%
World Bank Thailand MICT Broadband Study
11
Final Report By Local Consultant
Zone A
Zone B
Zone C
World Bank Thailand MICT Broadband Study
12
Final Report By Local Consultant
Source: Office of policy and regulations Market share service at the end of the
Note: 1/ fourth quarter of year 2009 combines quarter year 2009 (source: Office of policy
service provider of MVNOs and regulations)
Competitive Condition
According to the total number of the registered customers, we found that at
the end of the fourth quarter of 2009, AIS possessed the highest market share (43.51%),
slightly reduced from the previous quarter (43.61%). The proportion of the market share is
followed by DTAC of which the market share was as the amount of the last previous (29.80%).
Followed by True Move, the market share was at 23.80%, slightly increased. Regarding CAT-
Hutch, DPC, and TOT, which can be considered as the retail service providers, their market
share, at the end of the fourth quarter of 2009, could be summed as 2.58, 0.12, and 0.03,
respectively
As for the competitive condition classified by types of consumers that
responding to the different service charge rate, we can divide them in term of the market of
mobile phone in the type of Post-paid, Pre-paid which can be elaborated as follows.
With regard to the type of Post-paid, at the end of the fourth quarter of
2009, AIS possessed the highest market share (40.22%), followed by DTAC, True Move, CAT-
Hutch, DOC, and TOT of which the market shares were 32.50 , 17.39 , 8.53 , 1.12, and 0.25,
respectively
While the type of Pre-paid, at the end of the fourth quarter of 2009, AIS was
also possessed the highest market share as it did for Post-paid. In other word, it obtained the
market share at the rate of 43.90%, followed by DTAC, TRUE Move CAT-Hutch and TOT of
which the market share were 29.48, 24.74, 1.86 and 0.01, respectively
World Bank Thailand MICT Broadband Study
14
Final Report By Local Consultant
Market share mobile phone on Post-paid service at the Market share mobile phone on Pre-paid service at the
end of quarter of year 2009 (source: Office of policy end of the quarter of year 2009 (source: Office of
and regulations) policy and regulations)
3.5.3 Internet Market
When looking at the high speed internet access methods which is widely
used now, we found that, at the end of the last quarter of 2009, the access method of xDSL4;
especially ADSL (Asymmetric Digital Subscriber Line), which is popularly used among
residential and SMEs, possess the value of the internet access at the rate of 66.71%. While
the access method of Internet Leased Line which is popularly used in business sectors
possessed the access value at 30.04. In addition, there are still other kinds of high speed
internet access method such as cable modem, FWA, IP-TV, Metro Ethernet and WLAN which
can be calculated for the value of the access at the last quarter of 2009 at 3.24%
Market Share
Proportional value High speed Internet connection The year 2009 by quarter (source: IDC Thailand.2010)
As can be seen, the number of the high speed internet users and internet
access methods has been dramatically increased because of the free trade in internet
gateway. It drives the competition in service quality and reduces the cost in connecting the
internet internationally. In addition, it provides more choices of Internet Service Porviders
(ISPs) in the country with the speedier bandwidth which has been expanded to serve the
World Bank Thailand MICT Broadband Study
15
Final Report By Local Consultant
continuously growth of internet market and demand of the people in consuming information.
We may see that in the fourth quarter of 2009, the bandwidth of NIX was highly increased
from the previous quarter at 619,315 megabit per second. However, the IIG rate was slightly
higher from the previous quarter at about 104,600 megabit per second
Market Share
Market share of high-speed internet year 2009 (source: Office Market share of service on high-speed Internet
of policy and regulations) access at the end of the quarter year 2009 (source:
Office of policy and regulations)
Competitive Condition
When looking at the retail internet service market in connecting method that
XDSL is used as the representative of the competition of high speed internet market, we can
say that TOT, True Internet and TT&T SS or known as 3BB is the main player of the market in
this segment. In addition, as its advantage in holding the network of local telephone, TOT
possesses the highest market share of high speed internet market at the end of the fourth
quarter in 2009 (41.54%), followed by TRUE internet, TT&T SS (3BB) and other ISPs that the
market share can be set as 30.08, 23.79 and 4.60, respectively.
World Bank Thailand MICT Broadband Study
16
Final Report By Local Consultant
Source : DTAC
As for the 2G concessions which the three private companies received from TOT
and CATs telecommunication, they are still upheld. The circumstances cause the uncertainty
about the authority of spectrum allocation on which organization is in charge. This has an
impact on 3G auction process for NTC.
World Bank Thailand MICT Broadband Study
18
Final Report By Local Consultant
According to the NTC auction plan, in the middle of 2010, NTC will license 4 permits
for 3 previous operators and 1 for new operator. However, as NTC condition, TOT and CAT
who presently are state organization do not have the right to join this auction. It has caused
discontented by Ministry of Information and Communication Technology (MICT) as the
surveillant and the ministry has requested the Prime Minister to change the NTCs rule.
One more problem of the 3G auction is the relocation of 2G customers base under
the previous concession contract to the new permit system of NTC, referring to the previous
contract, the private sector must pay the concession fee about 20-25% from income to TOT
and CAT telecommunication. Meanwhile, NTC rules that the new permit is cheaper than
previous one approximately 6% which cost hundred of billions. If present 2G provider can
transfer customer database to the 3G network, the income of TOT and CAT
telecommunication will decrease substantially. Moreover, TOT and CAT have less on
competency to compete with private companies (the most explicit example is that the TOT
broadband service is still long behind its competitors). Nowadays, both TOT and CAT earns
their main income from the concession fee, if this part of the income is deducted, the profit will
turn to loss.
The NTCs 3G auction process faced many minor problems. Nevertheless, the major
problem is the loss of governmental revenue from concession fee. It caused the delay of 3G
while Thailand is only a few countries left in Asia that do not have 3G services. The main
obstacles are:
- That the valuation of the existing concession contract s price has to be fair and
reflect the real value so that the government does not lose its benefits and the
private sectors do not overpay causing the lack of 3G investment fund
- That this approach requires NTC as the authorized organization in surveillant,
and government as the TOT and CAT owner to work closely together to
determine the consistency of regulation, including the cancellation of concession
(governments authority), new 2G permit (NTCs authority), and the regulation of
3G auction (NTCs authority)
World Bank Thailand MICT Broadband Study
19
Final Report By Local Consultant
3.7 NTC-3G licensing process and roll-out requirements and eligibility criteria for
licensees.
National Telecommunications Commission (NTC) has announced the principles and
regulations concerning the permission of providing 3G service on 2.1 GHz. National
Telecommunications Commission has issued Information Memorandum under the title as
Permission for Using Frequency for Mobile Phone Business IMT: 2.1 GHz with the Limited
Licenses of 3 by Auctions for the Bandwidth of 2 x 15 MHz. The authorized company would
be permitted to provide the service in all over the country. Each provider is limited to use the
frequency for one set only.
Regarding the auction process, NTC has announced to invite all of the applicants to
the meeting at the same time and the auctions is run as Simultaneous Multiple Round: SMR.
SMR is very popular auction method, highly used abount the matter relevant to frequency
permission. In the auction, they would run it through intranet system. NTC has set the
computers and necessary facilities. The applicants would get the username (Login ID) and
password for the auction. In the auction, the applicants have to change the password from
what they have received and it is assumed that they agree for the terms and conditions for the
auction. The value will be started at the lowest rate and the rate would be increased in each
round where NTC has set as 60 million Baht for the appropriateness in permitting the private
sector in using national communication resource of the country. NTC sets the auction as
follows. 1) If a person participating in the auction were four or more, NTC will be bidding for a
license to use the frequency on all three sets, 2) if the auction was attended by three, NTC will
be auction for spectrum licenses of two, 3) If persons participating in the auction are two NTC
will be an auction for spectrum licenses to a number of sets and 4) If the participants in one
bid, NTC reserves the right to cancel this auction.
After the above auction, if there is still remain set frequency, NTC will start the
process to permit the next time within 90 days after the auction ends earlier.
World Bank Thailand MICT Broadband Study
20
Final Report By Local Consultant
Which starts at the price of winning the auction times the previous lowest The price
shall be the minimum value of the allowed bands and set the rest of the article 1) and 4) shall
apply.
If the successful bidders are the licensee of Telecommunications is already the third.
When compliance with the terms of the previous license until all NTC will consider issuing a
license to use the 2.1 GHz band IMT district to operate more mobile IMT under license a third
telecommunications has been the same.
For the duration of license To allow for a period of 15 years from the date of the
license. If the recipient a license to use the 2.1 GHz band IMT district is the licensee of
Telecommunications is already the third. To allow time for separate mobile IMT for 15 years.
The license fee for spectrum 2.1 GHz IMT district when the auction ends. The
successful bidders paid a license fee to use the frequency 2.1 GHz IMT district bid up the
price of the winners of each auction. The payment is divided into three periods as follows.
- the period in which a fee is of 50% of the highest bidder. With delivery guarantee
from a bank to guarantee to pay the remainder within 45 days from the date of
receipt of the notice is entitled to receive a license.
- pay the second installment of 25% of the highest bidder within 15 days from the
due date to allow time for the second year.
- pay the third installment of 25% of the highest bidder within 15 days from the
date of maturity to allow the third year.
Furthermore the applicant must place an auction for cash collateral. Or check
payable to the bank. This is to check the date on which the check was paid to the Office. NTC
or earlier than 3 days. The value of 10% of the next step of allowing use of spectrum set to be
licensed and to submit a letter of financial support in the business of commercial banks.
3.8 Radio frequency that can be used for 3G or WiMAX
From TOT definition 3G is wireless mobile or Mobile Broadband with speeds to 384
kbps - 2 Mbps or higher in motion and which is connected to the network at any time (Always-
ON). TOT's available through 14.4 Mbit/s The TOT's 3G network service on the 2,100 MHz
frequency is based on IMT-2000 standard of the ITU (International Telecommunication Union),
in which TOT is now the only operator licensed to use the frequency. TOT for 3G due to the
frequency prior to the NTC enables the frequency area and 3G mobile services at this
frequency. For the other providers is an adaptation of the existing frequency as 900 MHz or
1800 MHz and so be able to use higher data speeds comparable to so-called 3G commercial.
Non-compliance with international standards.
World Bank Thailand MICT Broadband Study
21
Final Report By Local Consultant
4. Methodology
4.1 Scope of Work
4.1.1 Objective of the project
This consultancy is part of a broader activity which has the objective of
assisting the Thailand MICT in preparing a rural broadband development strategy that involves
(a) taking stock of the deployment of broadband networks in rural areas, including in particular
access by priority groups such as medical clinics and schools; (b) identifying relevant
examples of approaches to rural broadband deployment and access from international
experience, including successful innovative approaches to promote efficient private sector
participation in the effective promotion of rural broadband development; and (c) developing
concepts for programming and/or policy initiatives for Thailand. The objective of this
consultancy is to contribute to the overall project on Thailand Rural Broadband Infrastructure
Development by providing expert knowledge on relevant Thailand-specific factors.
4.1.2 Tasks under local consultant
In order to achieve the objective, the local consultant will undertake the
following tasks:
4.2 Process
1) Identify key information required for the study and search for such
information from various sources.
1.1. General Geographic, Demographic, Socio-Economic Data
Geographic information, including maps, providing regional breakdowns
of population distribution (# of persons and households, age
distributions, etc.), and other relevant available demographic data;
Education data: numbers of schools, students, and teachers (primary,
secondary, university), within each rural region; also information on
technical/ICT programs: locations, numbers of students and
graduates, etc.
Locations and numbers of other key public institutions within each
rural region: government offices, health facilities, libraries, post
offices, etc.;
Recent economic trends, at a national and regional level (if possible
broken down between rural and other areas), especially GDP and
GDP/capita, household incomes, employment.
1.2. National and Rural ICT and Broadband Market Status
General telecommunications/Internet market data:
- Penetration of fixed and mobile telephone services, broken down
by region and rural vs. non-rural, if possible;
- Average spending/revenues for basic telecommunications
services, again with regional/rural breakdowns, as well as broken
down by operator;
Broadband and Internet market data:
- General data on national and regional/rural penetration and use
of Internet access (narrow or broadband), including private
consumer subscriptions, businesses customers, numbers of
ISPs, traffic data, etc.
- Data on availability and use of public Internet facilities in rural
areas: private Internet cafs as well as public Telecenters and
similar access points;
World Bank Thailand MICT Broadband Study
29
Final Report By Local Consultant
Tasks August September October November December January February March April
- Preliminary Information Gathering
- Int. Expert Visit (MICT , MOH , MOE , NTC ,
CAT , TOT, TDRI , TT&T , AIS ,etc
- Follow-up Information
- General Geographic, Demographic, Socio-
Economic Data
- National and Rural ICT and Broadband
Market Status
- Rural Broadband-related policies, projects,
plans, initiatives
- Gathering More
- Send Report Information to International
Consultant
- Draft Report Information on Local Consultant
- Review Report on International Consultant
- Prepare Workshop
- Co-organized Workshop
- Presentation : Status of Rural Broadband
ICT in Thailand By Local Consultant
Final report By Local Consultant
World Bank Thailand MICT Broadband Study
34
Final Report By Local Consultant
5. Interview
5.1 Schedule during 30 August-3 September 2010
Workshop
Service
Figure 1 : PercentOther
of e-Commerce business by sector of industry, 2007-2009
Percent
(Source : National Statistic Office)
3. In the linkage between Network Provider and Internet, GIN of TOT and CAT
will connect 2 links at 2 High Speed switches on separated Core layer and connect one more
link at Internet Data Exchange of both of them.
4. The GIN Network will connect to Internet Data Exchange via 2 links from TOT
and CAT. Initially, the speed of link connecting Internet Data Exchange is 20 Mbps per each
link.
5. The Redundancy Network linkage of GIN Network will construct in highly
redundancy style. In other hand, there is the Back-up link from PMOC/MOC/DOC to GIN and
within GIN will have the network connecting in redundancy style between Access layer,
Distribution layer, and Core layer, as well as have redundancy between TOT and CAT.
Characteristic of Network
1. The Cooperate of TOT and CAT Network: TOT and CAT will operate together
linking in core layer which enable the network to have highly redundancy and availability. The
opportunity to dysfunction is very less to none. The 4 devices in core layer will install in
different places.
2. The connection between agencies: GIN Network will equip separated
VLAN/PVC of each 274 Access Node. Each Node will have own VLAN ID/PVC ID. The same
agency will have the same VLAN/PVC, so each agency will look as if having own network,
while not necessary to be in the same location and can have higher security.
3. The Internet Network in Access Node will link GIN Network through Metro
Ethernet Network of TOT and CAT in Load Balancing (per routing). It enable to have
Bandwidth in each Access Node totally 4 Mbps, 2 Mbps, and 1Mbps for DOC, 20 Mbps for
MOC, and 800 Mbps for PMOC. TOT and CAT Networks are connecting with GIN as backup
to each other.
World Bank Thailand MICT Broadband Study
44
Final Report By Local Consultant
1. IP Star satellite
2. Ground system
- IPSTAR Gateway
World Bank Thailand MICT Broadband Study
47
Final Report By Local Consultant
- INMARSAT : use for communication between client devices and network or between
existing public telephone exchanges
- THAICOM : use for link communication between domestic users and for link with
server station for communication with other countries.
Moreover CAT co-invest in other satellite communication projects such as ASIA Cellular
Satellite (ACeS), Global Star, Odyssey, etc
2. International Submarine Cable Systems
- Thailand-Vietnam-Hong Kong : T-V-H
- Fiber Link Around the Globe : FLAG
- Thailand-Malaysia : M-T
- Asia Pacific Cable Network : APCN
- South East Asia Middle East Western Europe3 : SEA-ME-WE3
- South East Asia Middle East Western Europe4 : SEA-ME-WE4
3. Submarine cable station : Petburi, Songka, Chonburi, Satoon Provinces
4. Land Signaling System
CAT currently use fiber optic cable network for main communication network both
domestic and across countries. Fiber optic cable network and microwave communication
system have been installed nationwide. Its also link with International gateway via underwater
cables across countries and satellite system. And the system link to neighbors like Myanmar,
Laos, Cambodia and Malaysia.
By using high speed communication technology called (Dense Wavelength Division
Multiplexing) the main network can communicate with speed at 400 Gbps. Its also use ASON
technology that can support Multi-failure in devices and fiber optic network because of
protection and restoration system that run automatically. Its make the system high reliability
and having many classes of service for different demand of customers. Moreover it use Next
generation SDH (Synchronous Digital Hierarchy) that can service leased circuit and use
Ethernet system that can support utilization in high bandwidth efficiently. Currently, this
system is the core for services of CAT in phone service, CAT CDMA, communication services
and internet access.
5. Backbone network in Thailand : SDH, DWDM, Optical Fiber Network, CDMA and
IPSTAR
World Bank Thailand MICT Broadband Study
51
Final Report By Local Consultant
The above diagram shows detail about fiber optic cable line in metropolitan area
The above map shows fiber optic cable line in local area
World Bank Thailand MICT Broadband Study
58
Final Report By Local Consultant
coverage nationwide with budget of 19,980 million Baht. TOT will run the project building
5,320 base stations of 3G mobile phone in metropolitan and regional areas to cover all
provinces across country. This can let other service providers to rent the network for their
businesses without any redundancy of investment and meet the needs of increasing
Broadband Wireless Services.
7.4 National telecommunication commission of Thailand (NTC)
7.4.1 Policy and Duties
The Policy of NTC
The NTC is the first independent state telecommunications regulator. Its
duties and responsibilities are to regulate all telecommunications services in the country
through formulating a Master Plan on Telecommunications Activities, setting criteria and
categories of telecommunications services, permitting and regulating the use of spectrum for
telecommunications services, and granting licenses to the telecommunications operators.
At the outset, the NTC started mapping out its action plan which is aimed
at regulating and promoting telecommunications services in the country on a free and fair
basis. The action plan focuses on creating transparency and non-discrimination in
telecommunications services, enhancing public participation, balancing and making the best
use of telecommunications resources, building telecommunications technology to support
sustainable growth of domestic telecommunications industry. The following 11 important
policies were formulated by the NTC as a guideline for governing telecommunications
services in the country.
1. Frequency Management: Allocate fair distribution and efficient use of
frequency for the ultimate benefit of the citizen and the country.
2. Competition: Support market mechanisms to generate fair competition
in telecommunications market and relevant industry.
3. Licensing: Grant licenses to promote free and fair competition and to
prevent anti-competitive conduct.
4. Internet: Promote widespread Internet provision with the lowest charge
or license fee exemption.
5. Licensing and Enforcement: Regulate telecommunications business
operation on a fair competitive basis to ensure that service charges can compete with those
at a regional level; and that the services are of good quality.
World Bank Thailand MICT Broadband Study
61
Final Report By Local Consultant
Router Router
Hub Hub
Modem Modem
Modem Modem
PSTN PSTN
Modem Modem
World Bank Thailand MICT Broadband Study
69
Final Report By Local Consultant
INTERNET
Frame Relay
Router & Multiplexer Router & Multiplexer
Hub Hub
PBX PBX
Modem Modem
Modem Modem
PSTN PSTN
Modem Modem
- Hospital/Health office/clinic are used broadband connection (For ADSL should more
than 2 Mbps.)
- Barrier of broadband network for Medical application
- 3 main problem :1. Coverage 2. Performance 3. Cost
- Ministry of medical doesnt have own network. Quality will depend on government or
private service.
- Wireless internet (Satellite) may be require for remote area.
WiMAX Application
The WiMAXs pilot project was undertaken at Chiengkhong Crown Prince
Hospital, Chiangrai Province, using frequency Interference at 2.500 GHz. 2.520 GHz. during
January December, 2009. It connected Internet with ADSL at 2 Mbps via GateWay at Base
Station. The result revealed that government clinic get average transfer speed of 1/6.7 Mbps
(Upload/Download) which is capable for voice and video transmission. And, the limits for
mobility station are movement speed was limited at 40km/hr and coverage area at 3km from
base station.
Barriers of WiMAX implementation are 1) WiMAX has not been allocated
the frequency and it is not clear how to proceed with this technology since it depends on
relevant authorities 2) price of WiMAX equipment and maintenance are still high.
7.5.5 Plans and projects on Broadband Development
e-Health
World Bank Thailand MICT Broadband Study
71
Final Report By Local Consultant
Network
Network Configure as HOT SPOT within 5 km. radius (for Fixed Subscriber) and within 1
km. radius (for Mobile)
2 groups of Equipment
- WiMAX Equipment (IEEE 802.16e-2005)
- Video Telephony System : IP Phone, IP Camera, ASN-GW Server, Router and
Switching
Average Speed Testing (FTP Upload/Download w/ Base Station)
1. ER Room 100 m. 1.0/7.1 Mbps.
2. Satan PCU 3 km. 1.1/6.6 Mbps.
3. ThungNgiew 4 km. 1.0/6.3 Mbps.
4. Nammah PCU 5 km. 0.2/2.5 Mbps.
Over All 1.0/6.7 Mbps.
- Utilization - Medical Consultation (InterActive by IP Phone and IP Camera)
In concept of medical consultation within their own district PCUs Nurse consult to
Medical Doctor or Health Staff consult to Nurse. Average case is 1.3 case per day.
Most consultation is Diseases of the Circulatory System. Need to fix this problem :
Medical and Drug Supplies in Health Center/PCU.
- Satisfaction :
Users (Health Staff) please to use the system to communicate in their WiMAX Network
and also surf the WebSite.
- Research on telecommunication technology in rural area
The study of different technologies (ADSL, CDMA, IPStar, GPRS/Edge) reviewed that
ADSL is the most satisfaction technology; in contrast to IPStar which has a low upload speed
and it is also unstable. The satellite cannot transmit moving picture effectively. The speed
shall not be less than 1 Mbps.
7.5.6 Direction on Broadband Development
The investment for telemedicine is very high. However, every health center
shall have telemedicine either wired or wireless with speed of at least 1 Mbps so that voice
and picture can be transmitted. The mixture of existing and new technology shall be used to
fulfill the objectives.
World Bank Thailand MICT Broadband Study
73
Final Report By Local Consultant
CRI1
CRI2
PYO1
PYO2
MHN PAI
NAN
LPG1
NKI2
NKI1
PRE
LPN NNOM2
LOEI1
UTT
LPG2
UDI(L,R) SKN2 NNOM1
PLK2 LOEI2
SKN1(L,R)
SKT
Nongbualamboo
TAK PLK1(L,R)
PBOON2 KSIN
KKN2
KPP(L,R)
CPHUM MHAN
Phichit Yasothon
KKN1(L,R) Roiet
AMREN
MKAM
PBOON1
NSN(L,R)
UTN1
NSM2
UTN2
SING
CNAT LBRI
NSM1 (L,R) Ubon(L,R)
Surin Sisaket
SPBI2(L,R) SRRI Burirum
ATG
RTRI
NPT(L,R) Sakeo
CCO
SSKON
SSKAM
Chonburi CHBRI2
PTR1(L,R)
CHBRI1
RYG
PTRI2
Trat
PCP3
PCP1
BSE
CPN HMK
RNG1
RNG2
BMD (L,R) PSM (L,R)
TPJ
To nakornpathom
PNG1 SRT(L,R)
SLY
To samutprakarn
PNG2
To samutsakorn
PNG3
NSIRAT
PKT
Krabi
Legend
Trang Metropolitan Area
PTLG
DWDM NODE
Core Router
Pattani
SKA(L,R)
STOOL
At Present
- DWDM
- IP Star
- ADSL
- CDMA
- APLS
In Future
- WIMAX
- WIFI
World Bank Thailand MICT Broadband Study
77
Final Report By Local Consultant
sharing knowledge. The joint research projects are undertaken in NECTEC of which main
activities are the expert exchange and training courses. NECTEC researchers can develop
and improve their technological skills through the R&D collaborations with strategic partners
that will elevate the quality of NECTEC researchers and disseminate NECTEC's profile in the
international forums.
NECTEC has promoted and supported both bilateral and multilateral cooperations
with strategic partners through various forms such as the memorandum of understanding
(MoU), memorandum of cooperation (MoC), agreement, or contracts.
Regarding the activities concerning the internet of the country, they are under the
responsibilities of the Telecommunications Research and Development Division : RDT which
is under National Electronics and Computer Technology Center (NECTEC). They are
responsible for the research and study relevant to telecommunication technology in order to
obtain the policy and plans as appropriate to the demand of the country. They cooperate with
the many institutes as research, academic, industry, and private segments so that there could
be the research network to strongly develop telecommunication engineer. Furthermore, they
work with the private segments by transferring the technology to the business and industry of
the country. The development project concerning broadband of the country can be presented
as follows.
1. Rural Wireless Broadband Access
World Bank Thailand MICT Broadband Study
80
Final Report By Local Consultant
4. Fixed line penetration rate is 24% and only 10.7% is used for broadband access. The
remaining of 76% need to have new wireless technology such as Wi-Fi and WiMAX,
which has lower cost per number and faster penetration rate.
5. However, the duty of frequency allocation belongs to NTC and government policy.
6. Cost of having allocated frequency shall not be high so that the operators cannot
maintain business profitability while providing the services to people and country.
Content services
1. Most contents are currently for entertainment so that the broadband development would
not create high benefits for social, health, and education aspects.
2. It is necessary to create more contents that suitable for students, general people,
businesses, and public health.
3. Government should subsidize Content Service Providers in order to generate good
contents so that it will truly transform the country to the knowledge based society
Broadband services
True Corporation provides high speed internet in Bangkok and vicinity. The company is
working on extending the services to every area of the country. The time frame in network
expansion is depending on conditions.
Affiliation of the True Corp
- True Internet (TI) - License type 1 Internet Service Provider
- True Universal Convergence (TUC) License type 3 having its own network for
broadband services throughout the country
- True Internet Gateway (TIG) - service connection to internet exchange both domestic
and international
TRUEs Broadband subscribers (2 rd quarter 2010)
- Broadband internet users 751,000
- WiFi users 400,000
- International Bandwidth 25 Gbps / Domestic Bandwidth 80 Gbps
- Range of bandwidth offer to subscribers 6 Mbps to 50 Mbps
World Bank Thailand MICT Broadband Study
84
Final Report By Local Consultant
- Private sector provide hi speed internet service only in some area and deny
other area that they claim its not enough valuation for investment.
- Public should realize their right providing by the government such as the right
to access internet network with appropriate speed at fair price.
- Broadband is necessary for providing knowledge, technologies, and social
network on internet for the benefits relates to education, health, and career
development
8.9 Conclusion
NGO
- Broadband must be a basic infrastructure service.
- Government : be the driver and policy maker of Broadband Infrastructure
Development
- Private sector : provide hi speed internet services with good quality and
reasonable price.
9. Comment for Workshop
Approach and the role of the MICT of broadband development in rural areas.
Government especially MICT and regulator should be clarified on the roles, policies and
regulations built on fairness. The issues that should be resolved are
- MICT should decide on the direction of broadband service development for state
enterprises and private sector in order to uphold the free and fair competition which will
lead to the development of quality and services for all.
- Government should cooperate and work on the development of broadband.
Specifically, political will and determination are needed avoiding the disputes such as
the case on CAT and NTC on 3G licensing court battle.
- Government should not depend on market mechanisms alone. They should have a
clear framework for regulation and control of broadband development.
- Up to present, no political party has the policy on broadband development. Therefore,
the policy stated by political party or NBTC should be clear.
Government should convert policy and plans to action plan and implementation. The
investment may come from USO or fiscal budget from TOT, whereas TOT has to develop
wireless internet. MICT has the duty to reduce the gap by direct the plans into actions.
Demands from citizen could drive broadband development rapidly. It will force the
improvements in quality and speed of service.
Government should rethink about the combining of network scheme since the network
separation may increase the competition in new technology.
Government should solve problems regarding rules and regulations in the promotion of
public sector, in addition, private companies whose infrastructures cover in all areas but
encountering not enough users should leads to the increase in the operating cost so that
the 3G license process should be speeded up since it is a wireless connection and one
should use USO and tax reduction scheme to support such operation.
World Bank Thailand MICT Broadband Study
92
Final Report By Local Consultant