The one single feature that characterises the Thai telecom industry has arguably been 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 over the last decade or so successive governments have moved slowly on its implementation. By 2011 a range of deregulation issues were still crying out to be confronted. One of the big structural reform issues – the defining of the roles and the restructuring of TOT and CAT – was demanding urgent attention. In fairness to the industry regulator at the time, the industry over the years has not seen a sustained period of consistent policy direction from government. The market had been waiting a long time for the creation of the promised new regulator as well as the allocation of 3G spectrum.

Thailand finally got its new regulator, the National Broadcasting and Telecommunications Commission (NBTC), in September 2011. With the appointment of the board members, the new commission was able to start operating in its defined role. The commission’s first half year of operation certainly saw a lot of positive action. And most importantly the 3G licence auction looked set to proceed in late 2012.

Thailand’s mobile market has experienced a slowing of demand since 2009, after a period of sustained strong growth. With some easing in the expansion anticipated anyway as the market passed the 100% penetration milestone, the demand for service has been negatively affected by a major downturn in the Thai economy. Growth had already slowed from a few years earlier as the market’s long run of robust expansion, a run that had started in 2000, was probably coming to a close. As growth in the mobile market began to slow, the operators were hoping that long awaited 3G licences would help stimulate fresh business growth for them.

The Thai internet market is continuing on its growth path of the last number of years. The demand for internet and internet-related services has finally begun to increase as evidenced by the expanding volume of international bandwidth. Recognising that the surge in services has been occurring from a relatively low base, Thailand still has a lot of development work to do to catch up to some of the other countries in the region. The country’s estimated PC penetration rate, for example, was still only around 20% at end-2011 and, although moving rapidly, the development of high-speed access had really only just started. Operators were looking at a variety of delivery methods to augment internet penetration. The burgeoning mobile market in Thailand ensured that mobile phones, as well as set-top boxes, were high on the list of potential delivery devices. At the same time, the cybercafe in its different forms had already established itself as a key element in the country’s access equation.

Coming into 2012 the Thailand’s telecom/internet sector was looking quite battered. The Thai economy having suffered a major setback with the devastating floods in 2011, the ongoing global economic uncertainties were making for a generally gloomy outlook. Not surprisingly services providers in ICT the industry were finding it difficult to maintain healthy revenue growth. There were some bright spots in the market, however, with the launch of new generation services and smart device adoption. One forecast put Thailand’s ICT market at US$16.8 billion in 2012, representing growth of over 10% for the year, with mobile data the key growth factor. Thailand’s smartphone and tablet markets were expected to gain momentum. And of course, the big mobile operators have started their trial 3G services.

• Thailand’s mobile market had reached 79 million subscribers coming into 2012, for an overall penetration of 113%.
• After more than eight straight years of strong growth, the annual increase in the mobile subscriber numbers had eased substantially in 2009/10 as the national economy slowed.
• After mobile subscriber growth settled at 10% in 2011, a similar expansion was set for 2012.
• The NTC was replaced as regulator by the NBTC in late 2011 finally clearing the way for 3G mobile licences to be issued by way of an auction, probably in late 2012.
• The broadband internet market in Thailand further strong subscriber growth in 2011, an annual rate of around 25% being the pattern.
• There was also a surge in demand for smartphones in late 2011 and into 2012; all the indications were a change in user behaviour was happening, especially with the increasing use of mobile data services.
• Overall fixed broadband penetration was still relatively low - 6% in early 2012.
• The fixed-line market was showing no signs of revival, with growth going negative in 2011 and an early return to positive growth seeming unlikely.
• The Thai telecom market has been dogged recently by accusations of corrupt, illegal and/or inappropriate behaviour by various parties in the industry. The most high profile of these cases concerned the CAT-True deal over 3G network contracts in early 2011.
• Foreign investors had become wary of the Thai telecom market on the back of regulations that were aimed at limiting foreign control of operators.

2.1 Background

2.2 Economy

2.2.1 Severe flooding in 2011

3.1 Overview

3.2 Background

3.3 Political turmoil and its impact on the telecom sector

3.4 Government controls over the internet

4.1 Regulatory reform

4.1.1 Background

4.1.2 Telecommunications Act 2001

4.1.3 Ministry of Information and Communications Technology (MICT)

4.2 Regulatory authorities

4.2.1 National Telecommunications Commission (NTC)

4.2.2 National Broadcasting and Telecommunications Commission (NBTC)

4.2.3 Master Plans (including Frequency Allocation Master Plan)

4.3 Regulatory developments: 2011 / 2012

4.3.1 Service quality

4.3.2 Concession conversion

4.3.3 Foreign ownership

4.3.4 Social media

4.3.5 Registration of prepaid SIMs

4.3.6 CAT-True deal: ruled ‘illegal’

4.3.7 CAT-True deal: 3G licence at risk

4.3.8 True-Hutchison controversy

4.3.9 CAT v. DTAC dispute

4.4 Regulatory developments: pre-2011

4.4.1 Concession conversion

4.4.2 Taxation

4.4.3 Privatisation

4.4.4 Foreign ownership

4.4.5 Interconnection charges

4.4.6 National numbering scheme

4.4.7 Internet gateways

4.4.8 Voice over Internet Protocol (VoIP)

4.4.9 Third generation (3G) mobile licences

4.4.10 WiMAX

4.4.11 Registration of prepaid SIMs

4.5 Regulatory disputes

5.1 Background

5.2 Statistics

5.3 Next Generation Network (NGN)

5.3.1 Public payphones

5.4 International infrastructure

5.4.1 Overview

5.4.2 Submarine cable networks

5.4.3 Submarine cable systems under construction or proposed

5.4.4 Submarine cable outages

5.4.5 Satellite networks

6.1 Market overview

6.2 Background

6.3 Mobile market

6.3.1 CAT and TOT

6.4 Operator statistics

6.5 Major operators

6.5.1 Advanced Info Service (AIS)

6.5.2 DTAC

6.5.3 True Corp

6.5.4 Telephone Organization of Thailand Corp (TOT)

6.5.5 Communications Authority of Thailand (CAT)

6.5.6 Thai Mobile, TOT and CAT

6.5.7 TT&T

7.1 National telecom network

7.1.1 Overview

8.1 Overview

8.2 One Tablet Per Child (OTPC) project

8.3 Lese majeste laws

8.4 Internet statistics

8.5 ISP market

8.5.1 Overview

8.5.2 Market restructuring

8.6 Thailand’s internet gateway exchanges

8.6.1 Overview

8.6.2 Opening up of gateway market

8.7 Regulatory issues

8.8 Voice over Internet Protocol (VoIP)

9.1 Overview

9.2 Broadband statistics

9.3 True Online

9.4 National Broadband Policy

9.4.1 True’s fixed broadband project

9.5 Digital Subscriber Line (DSL)

9.6 Cable modem

9.7 Internet via satellite

9.8 Wireless internet

9.8.1 WiFi

9.8.2 WiMAX

9.9 Fibre-to-the-Home (FttH)

10.1 Broadcasting market

10.1.1 Overview

10.1.2 Regulatory environment

10.1.3 Digital TV

10.1.4 Internet Protocol Television (IPTV)

10.1.5 Free-to-Air (FTA) TV

10.1.6 Pay TV

11.1 Overview

11.1.1 Smartphones

11.2 Mobile statistics

11.3 Competition

11.4 Regulatory developments

11.4.1 Mobile Number Portability (MNP)

11.4.2 Mobile Virtual Network Operator (MVNO)

11.4.3 Interconnection arrangements

11.4.4 National security

11.5 Mobile technologies

11.5.1 CDMA

11.5.2 PCT service

11.5.3 General Packet Radio Service (GPRS)

11.5.4 Enhanced Data for GSM Evolution (EDGE)

11.5.5 Third Generation (3G) mobile

11.5.6 Fourth Generation (4G) / Long Term Evolution (LTE)

11.6 Mobile voice services

11.6.1 Prepaid

11.7 Mobile data services

11.7.1 Overview

11.7.2 Short Message Service (SMS)

11.7.3 Multimedia Message Service (MMS)

11.8 Mobile content and applications

11.8.1 Overview

11.8.2 Mobile TV

12.1 Forecasts – Fixed-line subscribers – 2015; 2020

12.2 Internet Forecasts

12.2.1 Overview

12.2.2 Forecasts – internet subscribers – 2015; 2020

12.3 Mobile Forecasts

12.3.1 Overview

12.3.2 Forecasts – mobile subscribers – 2015; 2020

Table 1 Country statistics 2012

Table 2 Telephone network statistics 2011

Table 3 Internet user statistics 2011

Table 4 Broadband statistics 2011

Table 5 Mobile statistics 2011

Table 6 National telecommunications authorities

Table 7 Thailand’s real GDP growth rate 2006 - 2013

Table 8 Fixed lines and teledensity 1995 - 2012

Table 9 Estimated fixed-line subscribers by operator 2011

Table 10 Estimated fixed-line subscribers metro vs provincial 2011

Table 11 Public payphones in service 2004 - 2011

Table 12 Public payphones by provider 2011

Table 13 Fixed-line operators and subscribers 2009; 2011

Table 14 Mobile operators, subscribers and annual change 2011

Table 15 Mobile operators, subscribers and market share 2011

Table 16 Other mobile operators, subscribers and annual change March 2009

Table 17 Monthly ARPU (postpaid, prepaid, blended) for major mobile operators 2011

Table 18 AIS: subscribers and market share 2004; 2007 - 2012

Table 19 AIS: mobile subscribers and ARPU (postpaid and prepaid) March 2012

Table 20 AIS: ARPU (postpaid, prepaid and blended) 2007 - 2012

Table 21 AIS: number of data users 2008 - 2012

Table 22 AIS: proportion of revenue from non-voice 2008 - 2012

Table 23 AIS: capital expenditure 2008 - 2012

Table 24 DTAC: subscribers and market share 2002 - 2003; 2005 - 2012

Table 25 DTAC: mobile subscribers and ARPU (postpaid and prepaid) 2011

Table 26 DTAC: ARPU (postpaid, prepaid and blended) 2008 - 2011

Table 27 True’s total revenues 2004 - 2011

Table 28 True Corp: capital expenditure 2007 - 2011

Table 29 True’s fixed-line subscribers 2004 - 2011

Table 30 True’s fixed line ARPU 2004 - 2011

Table 31 True’s payphone ARPU 2004 - 2011

Table 32 True Move: subscribers and market share 2004 - 2012

Table 33 True Move: mobile subscribers and ARPU (postpaid and prepaid) September 2011

Table 34 True Move: ARPU (postpaid, prepaid and blended) 2007 - 2011

Table 35 True Move: proportion of revenue from non-voice 2008 - 2011

Table 36 True’s PCT subscribers 2004 - 2011

Table 37 True’s fixed internet subscribers 2003 - 2011

Table 38 True’s broadband subscribers 2001 - 2012

Table 39 TOT’s fixed-line subscribers 2005 - 2011

Table 40 TOT’s total revenues 2005 - 2011

Table 41 TOT’s payphones 2005 - 2011

Table 42 TOT’s broadband services 2007 - 2011

Table 43 TOT’s broadband internet ports in service 2010

Table 44 CAT Telecom’s subscriber growth 2006 - 2009

Table 45 Hutchison CAT: subscribers and market share 2003; 2007 - 2010

Table 46 Thai Mobile Telecom’s subscriber growth 2002 - 2009

Table 47 Triple T Broadband’s subscribers 2004; 2007 - 2009

Table 48 Internet users 1996 - 2012

Table 49 Internet subscribers 1997 - 2012

Table 50 International internet bandwidth 2000 - 2011

Table 51 Fixed broadband subscribers and households 2011

Table 52 Fixed broadband subscribers and penetration 2001 - 2012

Table 53 Major fixed broadband players and subscribers 2011

Table 54 DSL subscribers 2002 - 2011

Table 55 True fixed broadband subscribers 2010 - 2011

Table 56 Key broadcasting statistics 2011

Table 57 Pay TV subscribers 1996 - 2002

Table 58 Pay TV subscribers by platform 2002 - 2011

Table 59 True Visions - pay TV subscribers 1998 - 2011

Table 60 True Visions total and FTA subscribers 2007 - 2011

Table 61 True Visions pay TV ARPU 2003 - 2011

Table 62 Mobile subscribers 1999 - 2012

Table 63 Mobile services revenue and ARPU 1998 - 2012

Table 64 Mobile operators, subscribers and market share 2011

Table 65 ARPU (postpaid, prepaid, blended) for major mobile operators 2010 - 2011

Table 66 Mobile subscribers prepaid and postpaid 2006 - 2011

Table 67 Forecast fixed-line subscribers and penetration rate 2015; 2020

Table 68 Forecast internet subscribers and penetration rate 2015; 2020

Table 69 Forecast mobile subscribers and penetration rate –2015; 2020

Chart 1 – AIS financials – 2007 - 2010

Chart 2 – True Move financials – 2007 - 2010

Chart 3 – Fixed and mobile subscribers – 1999 - 2010

Chart 4 – Fixed broadband subscribers – total vs DSL – 2003 - 2010

Chart 5 – Mobile subscribers and ARPU – 2002 - 2010

Exhibit 1 – Thailand’s Foreign Ownership legislation for telecom sector

Exhibit 2 – Submarine cable networks - 2011

Exhibit 3 – Thaicom’s satellite network – 2011

Exhibit 4 – Major operators by market segment

Exhibit 5 – True Corp’s major shareholders – April 2011

Exhibit 6 – Licensed ISPs in Thailand – 2011

Exhibit 7 – ISPs operated by telecom companies

Exhibit 8 – International internet gateway operators in Thailand – 2011

Exhibit 9 – FTA TV Broadcasters

Exhibit 10 – Major mobile operators and foreign shareholders – 2010