World Bank Thailand MICT Broadband Study. Thailand Rural Broadband Infrastructure Policy Project. Final Report. By Local Consultant

Transcription

1 Thailand Rural Broadband Infrastructure Policy Project Final Report By Local Consultant With Funding Support From The Public-Private Infrastructure Advisory Facility April 2011

2 Contents 1. Executive summary 1 2. Introduction 1 3. Literature Review Thailand Macro-economic Factors Overview of broadband in Thailand (Source: NTC) Definition of broadband Regulatory framework for broadband services Licensing regime Wholesale broadband regulations Rights of way 3.3 Broadband technologies in use in Thailand (Source: NTC) Fixed broadband services Wireless broadband services Internet and telephone coverage and usage in Thailand Fiber optic network Mobile phone coverage Fixed telephone coverage High-speed Internet signal coverage Telephone and Internet Users Behavior. 3.5 Market shares information Thai broadband market Mobile Services Market Internet Market 3.6 Institutional structures

3 3.7 NTC-3G licensing process and roll-out requirements and eligibility 19 criteria for licensees Radio frequency that can be used for 3G or WiMAX Current situation and trend of 3G in Thailand Policy and plans of government in rural broadband development National Broadband Policy (Drafted version) List of all relevant master plans and policies. 4. Methodology Scope of Work Objective of the project Tasks under local consultant. 4.2 Process Responsibility for workshop Time line by Local Consultant Interview Schedule during 30 August-3 September Framework for the study of Broadband Development in Rural Area on Local 36 Consultant. 7. Major Stakeholders in Thailand Telecommunication Ministry of Information and Communication Technology (MICT) Background Research Projects of the Ministry of Information and Communication Technology CAT Telecom Public Company Limited (CAT) Background Basic information on the of Broadband services

4 7.2.3 Plans and projects for Broadband Development Direction of Broadband Development TOT Public Company Limited (TOT) Background Basic information on the services of Broadband Policy on Broadband Development Plans and projects for Broadband Development Direction of Broadband Development National telecommunication commission of Thailand (NTC) Policy and Duties Plans and projects of Broadband Development Direction on Broadband Development Challenging issue Ministry of Public Health (MOH) Scope of operations Structure of Health Data Flows Policy on Broadband Development Computer Network in Ministry of Public Health Plans and projects on Broadband Development Direction on Broadband Development. 7.6 Ministry of Education (MOE) Policy on Broadband Development Computer Network in Ministry of Education Plans and projects on Broadband Development Direction on Broadband Development

5 7.7 National Electronics and Computer Technology Center (NECTEC) Background Private sector Advanced info service public company limited (AIS) True corporation public company limited (TRUE) Non Governmental organization (NGO) 8. Stakeholder Analysis and Background Information Status Broadband 85 Development in Rural Area 8.1 Ministry of Information and Communication Technology (MICT) CAT Telecom Public Company Limited TOT Public Company Limited National telecommunication commission of Thailand Ministry of Public Health (MOH) Ministry of Education (MOE) Private sector (AIS /TRUE) Non Governmental Organization Conclusion Comment for Workshop

6 1 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.)

7 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 , Thailand s economy was one of East Asia s 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. Thailand s GDP ended 2008 at USD273 billion (THB9090 billion), equivalent to around USD4300 (THB ) per capita. 2

8 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 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) 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 Regulatory framework for broadband services Thailand s 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 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. 3

9 As a result of this partial liberalization, the private-sector telecoms industry in Thailand saw substantial growth during the 1990s in the areas of fixed-line telephony, mobile telephony, and internet services. In January 2006, the NTC implemented a new licensing regime, issuing three different categories of license to privately-owned telecoms companies: - Type 1 licenses (renewable annually) allow companies to provide telecommunications services that are deemed to be fully liberalized without owning any infrastructure. - Type 2 licenses are granted to telecoms companies that provide services intended for a limited group of people, or services with no significant impact on free and fair competition or on public interest and consumers. These licenses can be awarded to service providers that operate with or without their own networks. - Type 3 licenses cover the construction, maintenance and operation of networks that are intended to offer services to the general public, or services which may cause a significant impact on free and fair competition or on public interest, or services which requires special consumer protection. In addition, list of all the Type 3 license holders as follow 4 No. The application of licenses Service 1 TOT public company limited Network Provider & Service Provider 2 CAT Telecom Public Company Network Provider & Limited (Thailand). Service Provider 3 AIN Global Communications Network Provider & Company Limited (AIS Service Provider International Net Works, Ltd.) 4 True convergence Universal Network Provider & Alliance Limited. 5 True International Communication Company Limited. 6 DTAC network Company limited. Service Provider Network Provider & Service Provider Network Provider & Service Provider License number and Date of issue End time permits 3ก/001/48. 4 August August ก/48/002 4 August August ก/49/ Jul July ก/49/003 8 December December ก/50/ Jan January ก/50/002 6 February February 2027

10 No. The application of licenses Service 7 Metropolitan Electricity Authority Network Provider & Service Provider 8 Provincial Electricity Authority Network Provider & Service Provider 9 Electricity Generating Authority Network Provider & of Thailand Service Provider 10 Win Win Net Corporation Co., Network Provider & Ltd. Service Provider 11 Super Broadband Network Network Provider & Company Limited. Service Provider 12 Loxley Wireless Co., Ltd.. Network Provider & Service Provider 13 Triple T Global Net Co., Ltd. Network Provider & Service Provider 14 C.S Lox info plc. Network Provider & Service Provider 15 Advanced Wireless Network Network Provider & Works Limited. Service Provider 16 Samut Prakan Media Network Provider & Corporation company. Service Provider 17 Triple T Broadband Public Fixed line services. Company Limited. 18 True Internet Gateway Co., Private rental Ltd. services between different countries. 19 jastel Network Limited. Private rental services between different countries 20 Millcom Systems Company Internet. Limited. 21 Super high-speed Internet Internet. Limited. 22 Sawasdee Shop Company Internet. Limited. License number and Date of issue 3ก/49/ December ก/50/003 1 March ก/50/ March ก/50/ June ก/50/ August ก/51/001 6 February ก/50/ November ก/50/ December ก/51/ June ก/52/ September ก/49/ February ก/52/ Nov ก/52/ November 2009 NTC/MM/INT/III/001/ May 2008 NTC/MM/INT/III/001/ January 2009 NTC/MM/INT/III/001/ December End time permits 27 December February March June August February November December June October February November November July April December 2017 [Source: NTC]

11 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 CAT s 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 6 Code Name Operator IIG-CAT International Internet Gateway CAT Telecom IIG-TOT International Internet Gateway TOT TIG-IIG True International Internet Gateway True Internet TTGN- TT&T Thailand Global Network TT&T IIG Gateway IIG-ADC ADC International Internet Gateway Advance Datanetwork Communications CSL-IIG CS Loxinfo International Gateway CS Loxinfo SBN-IIG International Internet Gateway Super Broadband Network 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 CAT Telecom holds the largest share of the market.

12 Route 7. The fiber optic network between Thailand, were the main routes, including 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 Wholesale broadband regulations These moves to liberalize the market have helped to increase competition and reduce end-user prices, but there are still some key regulatory issues that are yet to be resolved, in particular around the regulation of broadband services. Wholesale DSL and local loop unbundling (LLU) are not yet mandated by the regulator, although their implementation is planned. At present, there are three key areas of broadband interconnection that are monitored by the NTC: - interconnect with local access broadband networks (e.g. LLU and wholesale DSL) - interconnect with core broadband networks for backhaul products (e.g. dark fibre and leased lines) - interconnect with submarine cable to provide international broadband connectivity Under the current regulatory regime, broadband access network operators are not obliged to allow third-party operators access to their local access networks. Plans for the introduction of LLU in Thailand are currently under review by the NTC. Any access that is currently agreed between operators is carried out on a negotiated basis with no active pricing regulation.

13 At present core network operators are mandated to provide access to their assets to 3rd parties, in order to provide both passive network wholesale products and active network wholesale products. With passive network wholesale products, the interconnecting operator pays a fee for the use of the passive network components, such as the installed fibre and installs its own electronics in order to provide a service. With active network wholesale products, the interconnecting operator pays a fee for the use of both the passive network components and the installed electronics and effectively procures an end-to-end backhaul product at a specified level of service. Current regulation means that these products are charged on a negotiated basis, with offered prices being submitted to the NTC for monitoring, but no active pricing regulation is in place. Similarly for access to and interconnect with international submarine cables, owners of cable landing stations and interconnection points are obligated to allow access to these to 3rd parties, but this access is charged on a negotiated basis, with offered prices being submitted to the NTC for monitoring, but no active pricing regulation is in place Rights of way The majority of fixed network copper and fiber cabling in Thailand is deployed aerially via electricity poles. These poles are owned by three main state-owned electricity companies in Thailand: - Electricity Generating Authority of Thailand (EGAT) - Metropolitan Electricity Authority (MEA) - Provincial Electricity Authority (PEA). EGAT builds, owns and operates several types and sizes of electricity plants across the country and provides power to distributors MEA (which distributes electricity to premises within the BMA) and PEA (which distributes electricity to premises outside the BMA). Thus, EGAT owns a national network of poles that can be used for the deployment of core telecoms network infrastructure, whereas MEA and PEA own poles that can be used for the deployment of telecoms access network infrastructure. The aerial deployment of telecoms cabling can typically be completed at a lower cost than alternative approaches such as underground ducting, which tend to involve substantial costs for civil works (i.e. digging trenches). However, electricity poles can only support a finite weight (and so a finite number of telecoms cables) before there is a risk of collapse. In some areas the poles are already full. Should operators wish to deploy new infrastructure in such areas, capacity will need to be freed on existing poles (potentially 8

14 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 TOT s 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) 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, 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 9

15 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. follows: 3.4 Internet and telephone coverage and usage in Thailand According to NTC data, we can summarize the internet and telephone services as 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 Mobile phone coverage - Coverage : 63% - Coverage does not include the forest : 93 % - Population coverage : 87% Fixed telephone coverage - Coverage : 48 % - Coverage does not include the forest : 71 % - Population coverage : 75% High-speed Internet signal coverage - Coverage : 13 % - Coverage does not include forests : 19% - Population coverage : 37% 10

16 NTC found that which are: Telephone and Internet Users Behavior From the interviews of 5,779 special people and 1,597 normal population, - 65% never use public phone - For those who use the public phone the average is times per month - 91% use Pre-paid mobile phone - Mobile phone users use 9.14 times per day - 57% uses high speed ADSL Internet and 35 % uses Dial-up - Time of internet use is minutes per day From these numbers, NTC has separated the internet use into 3 Zones, - Zone A City area Business with high data density (use government fund for network development) - Zone B - Sub urban area Living with medium data density - Zone C Rural area - Need for Broadband development (use USO for network development) 11 Zone A Zone B Zone C

17 3.5 Market shares information Thai broadband market The main players in the broadband market in Thailand are: - Telephone Organization of Thailand (TOT) - True Corp - TT&T - Communications Authority of Thailand (CAT) In addition to the above, mobile operators (including AIS and DTAC) are looking to offer wireless broadband services although they are yet to launch full commercial services. TOT is the dominant player in the retail broadband market, with 38% of subscribers as of March 2009, although True Corp and TT&T also each have a significant market share with 35% and 22% of subscribers respectively (see Figure below). As the former monopolist in the international connectivity market, CAT also plays an important role in the current Thai market as it still handles a significant proportion of Thailand s international Internet traffic and has ownership of all international cable landing stations. 12 Market share of broadband providers in Thailand [Source: Telegeography]

18 3.5.2 Mobile Services Market 13 Market Share Source: Office of policy and regulations Note: 1/ fourth quarter of year 2009 combines service provider of MVNOs Market share service at the end of the quarter year 2009 (source: Office of policy 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

19 14 Market share mobile phone on Post-paid service at the end of quarter of year 2009 (source: Office of policy and regulations) Internet Market Market share mobile phone on Pre-paid service at the end of the quarter of year 2009 (source: Office of policy and regulations) 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 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

20 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 15 Market Share Market share of high-speed internet year 2009 (source: Office of policy and regulations) Market share of service on high-speed Internet 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, and 4.60, respectively.

21 3.6 Institutional structures 16 Source : National telecommunication commission of Thailand (NTC) In 1997, Thailand s constitution requires a separated regulator agency from the regular telecommunications service provider resulted in the establishment of National Telecommunications Commission (NTC) on October 1, NTC is an independent agency, liberated from the government. This agency has responsibility as regulator of telecommunications business as well as regulatory and telecommunication spectrum allocation. While TOT and CAT act only as the telecommunication service provider and moved under authority of the ICT Ministry in 2002,the same year as the establishment of Ministry of Information and Communication Technology. In the past, TOT and CAT opened the spectrum auction for the private sector. That time, the concessionaire of 900 MHz of TOT auction is AIS (till 2015), whereas the concessionaire of 1800 MHz of CAT is DTAC (till 2018). Afterwards, DTAC has shared some part of 1800 MHz with other companies which later have become Operator or the mobile phone provider as well, namely TRIE MOVE and DPC Co., Ltd., one company of Samart Corporation Public Co., Ltd. (Hello 1800 provider) which later AIS took over and merged to be GSM 1800, the institutional structure and revenue sharing, as well as interconnection/ assess charge are shown in figures below;

22 17 Note : MOF - Ministry of Finance ICT - Ministry of Information Communication and Technology Source : DTAC Source : DTAC As for the 2G concessions which the three private companies received from TOT and CAT s 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.

23 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 NTC s 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 NTC s 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 (government s authority), new 2G permit (NTC s authority), and the regulation of 3G auction (NTC s authority) 18

24 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. 19 Frequency Frequency measurements Lower Band Upper Band Prices start of the action The series 1 2x15 MHz MHz MHz 12,800 The series 2 2x15 MHz MHz MHz 12,800 The series 3 2x15 MHz MHz MHz 12,800 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.

25 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. 20

26 For the current Thailand has served 3G using frequency as follows: - Frequency 850 MHz Developed by True Dtac and extension from the 2.5 G or 2.75 G. - Frequency 900 MHz Developed by AIS by extension from the GSM (2.75) - Frequency 1900 MHz Developed by TOT From the individual entrepreneur developed to provide 3G services on the existing frequency. There may be some problems and obstacles. On call across the network's service area and other details that need to be agreed many respects. TOT's current 3G network in the first phase covers an area of Bangkok and its vicinity, so only 1 station, but TOT aims to expand the network. It will increase the number of stations. TOT 3G market is now focusing on selling the package. TOT plans to rent out 5 companies in a 3G network MVNO - Mobile Virtual Network Operator, namely is 365, Samart, Loxley, IEC and M Consult. From the 3G system will use a Non-voice, which is the main data can be used with mixed-media works in various formats Multimedia. Factor that was important to encourage people to use networking to benefit the most compared to the Application of software applications used for each type TOT, which itself has supported the development of the Application of MVNO as well as promotion agencies and their employees in the TOT to develop a new Application out as much as possible. In particular, the Application will be beneficial to society. If it is accepted, it will be released if the Application and the possibility of commercial products will be removed next. 3.9 Current situation and trend of 3G in Thailand The NTC councils, independent constitutional organization had conducted the 2100 MHz or 3G auction in 20th September 2010 as of previous schedule. The government and related organizations acknowledged and participated in this process. Plus, various organizations also support this auction, in hoping that this is the initiation to reform the Thailand s telecommunication. However, CAT telecommunication Co., Ltd. had legally sued NTC on the ground of its authority and function to withhold the auction. This leads to ceased of auction process and causing profoundly impacts toward politic, economic, and our society. The ruling by the administration court impeachment reflects the conflict between government and independent organization NTC in the allocation of national resource. On 10th November, 2010, the Council representatives considered draft of the organization Allocating Broadcasting Frequency and Supervising radio/television broadcasting and Telecommunication Business Act which has already agreed by the Council. The main issue is that the House of Representatives demand the National Broadcasting and 21

27 Telecommunication Commission Council which has 11 members according to approval by the House of Representatives, to (a) subtract the number of Council in the section of religious expert, but remain social development expert, (b) to limit the Councils age to be not below 50 years old, but not over 70 years old, (c) to expand the time range for state enterprise (CAT and TOT) to submit the revenue from concession, permit, or contract, after expense, to the government for 3 years since the act enter into force, including its provisions. The provisions may enter into force after the National Broadcasting and Telecommunication Commission about 1 year, or in other word, one and half year afterward the legitimization of this act. The National Broadcasting and Telecommunication Commission should temporarily allocate the people television broadcasting in the area that has the available analog spectrums; however, it must be reallocated when they becomes digital broadcasting. According to the House of Representatives Meeting has agreed to the draft of the organization Allocating Broadcasting Frequency and Supervising radio/television broadcasting and Telecommunication Business Act as above, after the Council Members resolved all issues, the Senate will propose to the Meeting on this 15th November, 2010, expecting to gain approval of this draft. As follow the process, the last stage, the Chairman of the House of Representatives will pass the draft Act to the Prime Minister proposing to His Majesty the King for signatory in this December, And after 180 days of the Act declaration in the Government gazette, the recruitment process of the Council members immediately, expecting in January and certainly finishing in June Many sectors express their opinions that this Act is on important Act and the societies profoundly expect the reformed telecommunication system to be more modernization; however, we have to consider the structure of telecommunication system, especially, the concession right whether it is fair or not. We hope that the Act will be the initiation point to the transition. The reformation will lead to changes in concession s benefit. If CAT and TOT are precipitated to transfer the revenue from business management to government, they may not be able to execute their business. Presently, both companies focus on commerce, do not emphasize in service. In the past 3 years, the concession fee of CAT valued more than THB two hundred billions. The company shared to the government only THB 2700 millions, approximately 20%of the whole amount. So, there is the question ask whether CAT does something worth enough for the government and people. 22

28 3.10 Policy and plans of government in rural broadband development National Broadband Policy (Drafted version) Government Intentions 1. Thai government supposes to do more support and development of Broadband service consider as main necessary infrastructure of the nation more widely, more adequate, more affordable and more competitive. 2. People are capable of more internet access and receive benefit from the development of Broadband. These solutions can solve the digital divide and spread prosperity to the region of the country. As well as improve their quality of life. 3. Both Thai government and private sector can access and receive benefit from Broadband development to increasing productivity and competitiveness of the country sustainable development. 4. The government should manage telecommunications asset in the private sector with equality as well as improve management efficiency. They should not monopolize the administration of Broadband network throughout the country. 5. The Government need to determine the policy and regulatory by awareness of national security. In addition, the private sector should have more participation and more investment in service. 6. Government supposed to promote telecommunications both wired and wireless carriers, ICT entrepreneur, content creators, the broadcasting business, the business of television and electronic commerce entrepreneur. Objectives 1. Development of Broadband network coverage not less than 80% in 2015 and not less than 95% in In addition, improve better service quality and base on reasonable cost. Estimate target at least 10 major cities of the country can be use the Hi speed Internet. Bandwidth should not less than 100 Mbps. Government need to invest is necessary infrastructure such as optical fiber network system in People perceive of internet service usefulness such as improve their education, better healthcare system, disaster warning and online public service through the Broadband network with coverage all area and eliminate the digital divide. 2.1 All schools in the main district of province have to access high quality Broadband service in 2015 and offer in every school in

29 2.2 All health centers in district have access to Broadband services with equivalent quality hospitals and linked to quality assurance service and social security system through Broadband network in Expanding e-government services via Broadband to the District Administration Organization so that people can access internet any time in Thailand has to have disaster warning system for monitoring disaster, natural disasters and alert emergency situation through the Broadband network for distribute information to the public. 3. Private sector can access and use of Broadband networks evenly to improve their competitiveness and economic growth of the country Increase the competitiveness in terms of technology infrastructure that is top 25% strategy of all country for gain ability to compete in the highest ranking of World Competitiveness Rankings The creative economy will be established in terms of design and service. That can operate anywhere in the country through the Broadband network. Decentralization from urban areas to distribute income to rural areas Increased proportion of e-commerce to GDP up to 10% in Reduce energy consumption and resource with access to communications, gain information sharing on Broadband services in both manufacturing and service sectors. 5. Reducing the cost of international connectivity fees and broadband access to the public to lower rates. 6. Development of content and application in education, health, and safety, religious, cultural, and environmental protection benefit. 7. People realize value and risk of information technology and communications, as well as the use of broadband with creativity. 8. Development of information system and communications technology industry. Approaches 1. To develop infrastructure and broadband services. 24

30 Thai government supposes to do more promotion and support competition in the broadband business and broadband services to rural areas Government and private sector are invest on infrastructure to develop broadband networks with efficiency and lower costs for reduce redundant investment Support the government in regulator to the allocation of spectrum as national resources CAT and TOT should be restructured and role in the Broadband network services to operators with equity Restructuring the telecommunications industry under the permit system and fair competition for entrepreneurs Thai government supposed to support research and development of Broadband technology both networks and services for commercialize. 2. Development to use of broadband Thai government supposed to do the development on application and content, which can be linked to e-government system, educational services system, health services system and information services system Thai government supposed to develop more skills and more capabilities about IT literacy and information literacy to the people, communities and SMEs from the service broadband. 3. Security of broadband network Development of information security experts and personnel 3.2. Build alternative networks to different regions of the world; land underwater cables, satellite and open policy for investment by public, private, or joint ventures Indentify negative impacts and threats to broadband services. Have measures in dealing with internet crime, intellectual property and private information violations.

31 Development of systems and infrastructure that can transmit and analyze important data such as warning systems via broadband. Also prepare emergency plans in case broadband system is not operable Chief Information Officer in government and private sector need to understand about policy of broadband service and national information security. 4. Management of policy and governance National Information and Communication Committee integrates work forces in each issue and set up subcommittees composed of private and governmental sectors to draft work plans in order to succeed the set objectives of this policy, follow up on issues, propose organization responsible in the action plan, and report the progress to the cabinet List of all relevant master plans and policies National broadband policy Second Thailand Information and Communication Technology (ICT) Master Plan ( ) Information Technology Policy Framework of Thailand (IT2010) Ministry of Information and Communication Technology (MICT) - Master Plan of information technology and communications of Ministry of Information and Communication Technology ( ) National Telecommunications Commission (NTC) - Master Plan of telecommunications issue 2 ( ) Ministry of Education - Master Plan of information and communication technology to education of the Ministry of education Ministry of Health - Master Plan of information technology and communications of ministry of Health

32 4. Methodology 4.1 Scope of Work 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. following tasks: Tasks under local consultant In order to achieve the objective, the local consultant will undertake the 27 1) Take stock of current access to broadband in rural areas of Thailand, in particular by priority groups such as schools and medical clinics; 2) Identify and describe key factors that apply in Thailand, including institutional, market, and rural development factors and opportunities; 3) Review and make comments on the main reports prepared by the international consultant, with a focus on the relevance and applicability of the findings and recommendations to the Thai context; and 4) Propose and facilitate meetings for the International Consultants, make recommendations regarding invitations to the Workshop (including advice on target user groups in rural areas and mechanisms to engage with them), and assist in arrangement the meetings with experts, stakeholders, and MICT officials.

33 4.2 Process 1) Identify key information required for the study and search for such information from various sources 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 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 cafés as well as public Telecenters and similar access points; 28

34 - Identification and scope of current broadband service providers (fixed-line ADSL or equivalent; satellite-based; cable-tv; wireless mobile; WiMax and other Broadband Wireless Access); - Current geographic deployment of national and international backbone network links and levels of capacity; - Current geographic deployment of broadband capacity retail networks and services in non-urban areas, (ideally network map or other detailed data showing availability of services by region); - Penetration and revenue trends for retail broadband services, both nationally and in non-urban areas (# of subscribers, average revenues, preferably by region, for each service); - Catalog of Broadband and Internet availability and utilization at key public institutions nationwide in rural areas, by region (schools, health clinics, government offices, libraries, post offices, etc.) Other ICT market data: - Penetration of computers among Thai households, consumers, ideally broken down by region and by rural/non-rural; - General national market data for e-commerce spending in Thailand, including on-line purchases, e-banking, web businesses, etc.; - General national market trend data for other key digital life indicators: ipods and mp3, DVDs, video and computer gaming, social networking, etc Rural Broadband-related policies, projects, plans, initiatives Government policies and programs: - Licensing of 3G, WiMax, other new, competitive broadband providers; - MICT ICT Master Plan (and other MICT); - NTC Universal Service (and other NTC); - Ministry of Rural Development (or equivalent) programs, strategies; 29

35 - Ministry of Education: School Net, e-learning, training, other programs; - Ministry of Health: e-health, etc.; - E-Government programs in general. License condition on 3G network role out by NTC and current situation on 3G after suspension the licensing process by Thai Administration Court Private sector projects and plans: - Communications operator plans for further investments in broadband network and service rollouts in rural areas; - Companies planning to introduce or expand ICT products and services that rely upon broadband in Thailand; - Partnerships, marketing campaigns, other commercial initiatives to promote rural broadband growth. 2) Arrange interviews with relevant agencies. Ministry of Information and Communication Technology (MICT) Ministry of Education (MOE) Ministry of Health (MOH) National Telecommunication Commission of Thailand (NTC) CAT Telecom Public Company Limited TOT Public Company Limited Thailand Development Research Institute (TDRI) Advanced Info Service Public Company Limited (AIS) TT&T Public Company Limited etc. 3) Collect Information from interviewing sources Ministry of Information and Communication Technology (MICT) - Statistics using E-Commerce. - How to use Government Information Network (GIN) and access to the agency. - Information of the location of the ICT community center and connections with the current Internet. 30

36 - Information of the Broadband development policy or plan of Thailand - Information of the location networks IP Star connected to a different location. Ministry of Education (MOE) - Policy, strategy and guidelines for infrastructure development and use of the Broadband for Education in Thailand Especially for education in rural areas. - Broadband data network under the supervision of the Ministry of Education. - Trends of Broadband Education for Thailand in the future. Ministry of Health (MOH) - Policy, strategy and guidelines for infrastructure development and use of the Broadband for Health in Thailand Especially for public health in rural areas. - Broadband data network under the supervision of the Ministry of Health. - Trends Broadband for Health for Thailand in the future. National Telecommunication Commission of Thailand (NTC) - Policies and guidelines for developing Broadband infrastructure in the context of Thailand - Number and location of the data network Broadband. CAT Telecom Public Company Limited - Data network Broadband of CAT Telecom Public Company Limited TOT Public Company Limited - Data network Broadband of TOT Telecom Public Company Limited TT&T Public Company Limited - Data network Broadband of TT&T Telecom Public Company Limited Thai Netizen Network (Thailand Institutional Type : Civil Society/NGO) 4) Summarize and prepare the data for International Consultant 5) Send the collected information to the International Consultant 31

37 32 6) Write up a Draft Information Report prepared by Local Consultant and send to World Bank for a review. 7) Give recommendation on Draft Report prepared by International Consultant 8) Prepare a Workshop in Bangkok Coordinate with MICT and World Bank in organizing a Workshop in Bangkok 9) During Workshop. Presentation : Status of Rural Broadband ICT in Thailand By Local Consultant 10) Final report by International Consultant 4.3 Responsibility for workshop Local Consultant will work with MICT in coordinate the workshop; invitation participant, selection the site and present the current situation/status of Thailand ICT/ Broadband development.

38 Draft Report By Local Consultant 4.4 Time line by Local Consultant 33 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

39 34 5. Interview 5.1 Schedule during 30 August-3 September 2010 Date time List of Interviewee preliminary meeting at MICT Monday 30 August Ms. Mayuree Rattanamung - Director of Information and Communication Technology Center - Ministry of Education Tuesday 31 August Mr. Anant Worrathitipong - Senator Dr. Sinchai Torwattanakitkul - Director of Information and Communication Technology Center of Ministry of Public Health Wednesday 1 September Ms. Kedkamol Saenawat Manager - TOT Public Company Limited Meeting at MICT Thursday 2 September Mr. Prawit Leesathapornwongsa - Director of Telecommunication Consumer Protection Institute Mr. Niphon Jongvishit - NTC

40 35 Date time List of Interviewee Friday 3 September Mr. Wichian Mektrakarn - Chief Executive Officer - AIS Dr. Somkiat Tangkitvanich - Research Director (Information Economy), Science and Technology Development Program - Thailand Development Research Institute Mr. Sompol Janprasert - Senior Executive Vice president of Broadband Business - CAT TELECOM PUBLIC COMPANY LIMITED) Mr. Chamnarn Pramotepaiboon - CEO - TT&T Public Company Limited

41 6. framework for the study of Broadband Development in Rural Area on Local Consultant 36 MICT has requested the World Bank to provide input for a rural broadband development strategy. With the support of the Public- Private Infrastructure Advisory Facility The Bank is responding to this request by mobilizing a small team of consultants under the direction of senior World Bank staff from the Global ICT Department. Local Consultant - Preliminary Information Gathering - Arrange interviews with relevant agencies and collect information from interviewing sources. - Summarize and prepare the data - Collected information International Consultant Strategic options for development of rural broadband policy for Thailand International and Local Consultant Draft Information Report prepared by Local Consultant Workshop Final report by Local Consultant

42 7. Major Stakeholders in Thailand Telecommunication 7.1 Ministry of Information and Communication Technology (MICT) Background The Ministry of Information and Communication Technology was established on October 3, 2002 by the Government Ministry and Department Reorganization Act B.E. 2545, and was granted the power and duty to plan, promote, develop, and perform activities related to information and communication technology, meteorology, statistics, and any other public duties specified by the law to be under the power and duty of the Ministry of Information and Communication Technology. The ministry consists of 1. Office of the Minister 2. Office of the Permanent Secretary 3. The Meteorological Department 4. The National Statistical Office 5. TOT Public Company Limited 6. CAT Telecom Public Company Limited 7. Thailand Post Company Limited 8. Software Industry Promotion Agency (Public Agency) Section 57 Within one year as from the date this Act comes into force, the government shall submit an Act establishing the Information and Communication Technology Promotion office, the Information and Communication Technology Research and Development office, and the Civilian Survey and Cartography Department under the Ministry of Information and Communication Technology. Vision : To become the ASEAN s leading for Information and Communication Technology (ICT) development, and to be the center organization in ICT developing and integrating thoroughly Thailand with efficiency. Missions: 1. Suggestion and implementation an information technology and communication policy of the Government in bringing a concrete action. 2. Thailand has a role in promoting as a hub of information and communications technology of Asia region. 3. Role for promotion, support and development of ICT usage of all sectors in order to develop in various parts of Thailand thoroughly and efficiently. 37

43 4. Research and Development of ICT for promotion is to be supported in order to increase world s competition power and capability. 5. The efficiency development in ICT human resource for promotion and support. 6. Tracking on performance to assess by the information technology and communication development policy. Service Objectives The Ministry of Information and Communication Technology has specified its service objectives, so as to be compatible with its duty, as follow: 1. To develop the ICT capability of the country so that Thailand could become a regional ICT center. 2. To employ ICT in the management and services of the public sector efficiently and ubiquitously. 3. To develop and promote the use of ICT to increase the competitive edge of the country. 4. To provide natural disaster warnings using modern and efficient ICT systems. 5. To provide up-to-date information and database for decision-making to the administration Research Projects of the Ministry of Information and Communication Technology 1) Current Situation and Trends of e-commerce in Thailand From the result of the 2009 e-commerce survey, shown in figure 1, it is found that the sector of fashion, costume, gems and jewelry is accounted for 42.1%, while sector of computer, electronic devices and internet is 17.7%. In , the sector of fashion, Costume, Gems and jewelry was 18.0%, 29.4% and 42.1% respectively 51.2% of e-commerce has been established for less than 1 year. When considering the characteristic of sale, around 60.5% solely sells via electronic. In addition, 4.5% is the business on OTOP products. 38

44 39 Computer, Electronics, and Internet Fashion, Costume and Jewelry Travel Hotel and Resort Automotives and Industrial products Publications and office equipment Service Figure 1 : Percent Other of e-commerce business by sector of industry, (Source : National Statistic Office) Percent When considering the values of e-commerce in 2008 by operators, it is found that the total was worth 527,538 million baht (e-auction was worth 288,749 million baht, or 54.7%) The B2B operators was 190,751 million baht, or a 36.2% and B2C operators was 45,951 million baht, or a 8.7% (figure 2). Figure 2 : Table show values of e-commerce by operators operators values of e-commerce (million baht) Value Percent Value Percent Value Percent Total 305, , , B2B 79, , , B2C 47, , , B2G 177, , , e-auction (กรมบ ญช กลาง) (176,683) (57.9) (233,982) (54.8) (288,749) (54.7) จากการสารวจ (1,249) (0.4) (2,728) (0.6) (2,087) (0.4) Source : National Statistic Office

45 When considering the values of sale in 2008 by sector, it is found that the total was worth 527,538 million baht (e-auction was worth 288,749 million baht, or 54.7%) The B2B operators was 190,751 million baht, or a 36.2% and B2C operators was 45,951 million baht, or a 8.7%. Considering the values of sale separating by sector of industry, it is found that in 2008, the automotives and industrial products have the most volume about 71, 617 million baht (30.00%), then the about 59,420 million baht (24.9%). Next in line is Fashion, costume, jewelry and accessories approximately 11,811 million baht (4.9%). Comparing to the 2007, it is shown that the automotives and industrial products has increasingly more sales value from 16.8% in 2007 to 30% in 2008, as well as the computer, electronics, and internet has grown up from 16.1% in 2007 to 24.9% in 2008 (figure 3). Figure 3 : Table show values of e-commerce by sector of industry, sectors values of e-commerce (million baht) Value Percent Value Percent Value Percent Total 128, , , Computer, 12, , , Electronics, and Internet Fashion, Costume 11, , , and Jewelry Travel Hotel and 7, , , Resort Automotives and 21, , , Industrial products Publications and 1, , , office equipment Service 10, , , Other 63, , , Not including governmental e-auction business Source : National Statistic Office 40

46 Turning to e-commerce business (not including governmental e- Auction business), it is the domestic market valued 85.9% from the whole sales values. The international shares is about 14.1% which the customers come from various countries such as United States, Australia, United Kingdom, Japan, Canada, Germany, to name but few. Ministry of Information and Communication Technology (MICT) initiatives on CIO function and on support for E-commerce, which has established the Office of Electronic Commerce. Under the MICT. Under the Office of Electronic Commerce, It divides the work and duties into: 1. Department General Administration. 2. Group of standard electronic transactions. 3. Group of policy promotion and development of electronic transactions. 4. Group of regulatory services. The Office of Electronic Commerce has the function as follow : 1. Recommendations to the Board of Directors of electronic transactions in the preparation of the terms and security measures and Information Infrastructure Protection relevant. 2. Recommend and push for data exchange standard and applicable technology to meet international standards. 3. Define criteria and direction to permits, business registration services that related to electronic transactions, as well as the approval and supervision services related to electronic transactions. 4. Promote or prepare development guidelines for staff in the application of information technology and communications, and various laws, regulations or guidelines involved in electronic transactions. 5. Coordinate for cooperation in the various Agencies or international organizations in matters relating to electronic transactions. 6. Ensure other duties and objectives of the law on electronic transactions. Or other relevant rules. Or by the Committee assigned to electronic transactions. 7. Working with or support the work of other agencies involved or to be assigned. MICT currently anticipates drive the market expansion through the One Tambon One Product (OTOP), products under the e-commerce. The OTOP shopping via the Internet is another means to find a wide range of OTOP products. If the system of payment and delivery are efficiently it will be able to promote electronic transactions for the OTOP products as well as spending up the business experience even more. 41

47 The Ministry of Information and Communication Technologies prepared to push the policy to use e-commerce effectively for both providers and clients. The MICT with 6 agencies taking a project to promote e-commerce Entrepreneurs, the One Tambon One Product is tries on a pilot project. OTOP entrepreneurs can do business in a systematic way under manufacturing, transportation, and promotion, distribution and payment. This will support the distribution of OTOP operators using the potential of the six agencies follows the Community Development Department, Ministry of Interior, Department of Export Promotion, Ministry of Commerce, Krung Thai Bank (Thailand) Co., Company Limited TOT (Thailand) Co., Ltd. and Thailand Post, MCOT Public Company Limited. To the OTOP products and goods in the Royal Project. Resale transactions via electronic commerce (e-commerce), targeting major credit card customers. Each agency is responsible for the areas. Community Development Department will serve selection, Collection of OTOP products and coordinate with the operator. Department of Export Promotion, Promotion Consultants OTOP products in a foreign language. Krung Thai Bank. Preparation of the payment system through various appropriate. TOT preparation system online shop website. For product display. Collection order Training and knowledge in e-commerce. And Thailand Post Company. Undertake the transportation system, both domestically and internationally. Including counseling, appropriate packaging. And MCOT Plc will use network communication channels with various fields to support and publish the OTOP products join the project. 2) Government Information Network : GIN Network Design Concept GIN Network is the network connecting internal governmental agency together. It has characteristic as the Government Internet linking The Prime Minister s Office, Ministry, and Department which will further support the lower hierarchy rank agencies. 1. VLAN for GIN Network is provided by CAT and TOT by absolutely separating GIN and Non-GIN Network. Each access Node will have VLAN/PVC which lead to the strongly and trusty security system. Totally, VLAN/PVC of each Access Node will have 274 positions dividing and having their own VLAN ID/PVC ID. 2. The linkage between components and circuits in GIN of CAT and TOT consists of 3 layers namely, Core layer, Distribution layer and Access layer. The Network PMOC, MOC and DOC will like with CAT and TOT in Access layer. 42

48 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. 43

49 3) IP-Star Broadband Satellite IP STAR provides hi speed internet service via satellite, that type of two-ways Broadband Internet always on for support internet service such as Video on Demand and E-Learning. IPSTAR service could be Broadband Internet service because of no limitation about coverage area service. IPSTAR can provide hi speed internet in business area, urban area or even remote area that telephone line can not be accessed while other hi speed internet system like ADSL or Cable Modem can provide service only a small area of important business area of Bangkok. IPSTAR system also use small satellite dish that save space in installation and no need to access by telephone line. It also connect internet in always on mode that user not necessary to connect telephone line for use internet. IPSTAR was designed to install a good performance and stability signal transmission system and has efficiency transmission channel management system. It made IPSTAR can apply for use with many application such as large signal transmission, remote VDO conference via internet, voice service, broadcasting to organization s internal network. It also be used for building wireless internet network in offices or residents both large and small organizations (SMEs) that sometime want to use hi speed internet. It can also be used to support education and health service. Services from IPSTAR satellite system in Thailand IPSTAR Network structure 44 Source : TOT Public Company Limited (TOT)

50 Thailand has 5 Spot Beam, 1 Augment Beam and 1 Broadcast Beam - Unicast Spot Beam, 3 Gbps - Broadcast Beam, 98 Mbps 45 Source : TOT Public Company Limited (TOT)

51 In Thailand, a channel is about 3 Gbps (including receiver and transmitter), IP Star consists of two equipment IP Star satellite and Ground system IP Star satellite 2. Ground system - IPSTAR User Terminal Indoor Unit (IDU): Outdoor Unit (ODU): - IPSTAR Gateway

52 4) Community ICT learning centers The "Establishment of ICT Community Learning Centers" project. This project establishes ICT community learning centers that are suitable to the needs of the local communities, so that they can access the Internet to search for data, enhance their body of knowledge, and facilitate life-long learning. This project aims to train community specialists to be knowledgeable and proficient in ICT so that they can operate the centers by themselves. The centers are to be the reservoirs for local wisdoms and information that are useful for everyday life and job creation, helpful to the community decision-making, supportive to the philosophy of sufficiency economy, and provide access to the e-services, which would help reducing the digital divide. As of 2010, 872 ICT community centers have been established coverage area shows below 47

53 The ICT community centers use ADSL at a speed 2 Mbps. and IP STAR at a speed 1 Mbps. The future is the establishment of another 1,000 centers across the country. This is during the purchasing materials / equipments of ICT Community Learning Centers project in 2011 The MICT allocate the budget for the establishment of ICT learning community for the construction of the center computer as well as network with the internet for a year. The communities that are interested can download the document and the query, or fill out forms and mail them to the MICT. Staff will check the readiness of the community from the initial documents. If the communities are selected from the document. Initial the project team will make appointment to future explore the availability in the area. To select the community center and approval for budget. Communities must have a management and budget plans. The Ministry of ICT will support the Internet communications and maintenance costs for only one year later the community must support be staff. Generally the internet speed of the center is 1 Mb. Normally it uses a high-speed Internet by wired ADSL but without wire it uses a satellite Internet (IPSTAR) or Network CDMA. Therefore, in selecting the community center Ministry will be considers the management plan, local and community leaders, and center staff including cooperation within the community. 48

54 7.2 CAT Telecom Public Company Limited (CAT) Background State-owned Communications Authority of Thailand (CAT) was set up in 1977 as the country s sole provider of international direct dialing (IDD) to all regions except neighboring countries, which fell under the jurisdiction of its sister (domestic) operator TOT. Until recently, CAT had a monopoly over international telephony in Thailand. However, the international calls market was opened to private operators in This, together with the rivalry from TOT in IDD markets, has seen CAT s share of Thailand's international call revenues fall to 60% in 2008, down from 78% in CAT s mobile telecoms services in 51 northern and southern provinces are provided under the CAT CDMA brand over a wholly-owned network based on CDMA2000 technology. In Thailand's 25 other provinces, CAT owns a 26% stake in Hutchison CAT Wireless Multimedia (HCWM), a joint venture with Hong Kong-based Hutchison Telecommunications International (HTIL). In addition, CAT launched 3G data services (based on 1xEV-DO/3.5G Rev A technology) in June 2008, but the deployment remains limited to northern and southern regions. By June 2009, total wireless subscriptions had reached and 3G subscriptions had reached CAT's revenues from wireless services in 2008 totalled THB2.86 billion, up from THB2.16 billion in CAT also provides broadband Internet access services in the form of ADSL and SHDSL technologies. In March 2007, it launched the Hi-Net brand on a limited geographical basis, offering 2Mbit/s (download) ADSL connections for users in selected areas of Bangkok, Chiang Mai, Khon Khaen and Phuket. During the remainder of 2007 and into 2008, CAT continued to expand the availability of its broadband service, whilst upgrading maximum download speeds to 4Mbit/s. CAT has run WiMAX trials with ZTE using the 2.5GHz frequency band. Whilst waiting for the issuing of commercial WiMAX licences, CAT has also announced plans to invest THB6 billion to install FTTB (fibre to the building) in select urban areas, initially targeting subscribers with a monthly service fee of THB Basic information on the of Broadband services Broadband and Internet Services of CAT 1. Communication and information System via Satellite - International Telecommunications Satellite Organization (INTELSAT) : use for communication across countries in India ocean and Pacific ocean area 49

55 - 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. It s 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. It s also use ASON technology that can support Multi-failure in devices and fiber optic network because of protection and restoration system that run automatically. It s 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 50

56 6. Name of broadband and internet to rural area - Hi net service - CAT Corporate Internet service - OnNet service (FTTx) - WiFi service - CDMA service (Moblie Internet) Plans and projects for Broadband Development Broadband Business Investment Plans/Projects 1. Private Leased Circuit Node Expansion Plan Additional nodes will be installed in Bangkok and its perimeters, as well as provincial areas, in order to boost efficiency and expand the extent of our private leased circuit services. 2. IP Core Network Expansion Plan The main network providing IP-based services that can cover all areas (not including access network) is a vital factor that can be utilized for various related services and can also benefit from the multiservice on a single IP network principle. This can be achieved by boosting the speed of the core network and connections between the nodes and core network, as well as expanding service areas under the IP Core Network to encompass the entire country. 3. Wireline Access Network Expansion Plan The network to provide customer services in wireline systems can be connected from the core network to distribute and boost service efficiency and quality nationally. It can handle various telecommunication more services requiring large capacities and high speeds such as domestic and international high-speed leased circuit services, international telephone services, frame link services, broadband Internet services, etc 4. Wireless Access Network Expansion Plan The network providing customer services in wireless systems can be connected from the core network to distribute and boost service efficiency and quality nationally without the need for the installation of new cables. This is mainly for customers in the corporate, residential and SME sectors, as well as those living in areas where CAT s wirelines were not available. 5. Metro Network Expansion Plan This is to expand high-speed services in urban and economic areas for customers in the corporate, government, education and SME sectors, as well as to be capable of handling telecommunication services requiring larger capacities and higher speeds. 51

57 6. Domestic Link Network System Development Plan This is to build a network infrastructure linking the optical-fiber cables in provincial areas to increase coverage for future service expansion and to serve as alternative routes to help boost the networks stability and reliability more effectively, thus increasing users satisfaction. 7. Outside Plant Improvement and Maintenance Plan for Bangkok and its Vicinity This is to improve and upgrade the capacity of the connection system and optical fiber and copper cable networks in Bangkok and its perimeter, making them more efficient and capable of meeting the demand for larger-capacity and higher-speed communications. It is also to expand the cable networks for more extensive coverage nationwide. 8. Asia-America Gateway Submarine Cable Project This is to boost the number of circuits connecting from Southeast Asian countries to the United States in order to be able to handle all types of telecommunications including multimedia, internet and broadband services, which need wide bandwidth to accommodate high speed transmission of data. This involves co-investment in submarine optical fiber cables of at least 640 Gbps per fiber pair utilizing the Synchronous Digital Hierarchy (SDH) and Densed Wavelength Division Multiplex (DWDM) technologies. 9. IP Network Development Plan This is to boost the efficiency of the network to be able to handle data transmission at a higher speed through the expansion of the network s bandwidth to accommodate higherspeed connections and the Next Generation Access Network nationwide as well as to expand number of ports to handle clients in the residential, corporate, SME and multinational enterprise sectors, etc. 10. Access Network Equipment Development Plan. This is to boost the network s flexibility and customizability and to improve and maintain transmission equipment, spare parts, synchronization equipment, multiplexer and all other necessary support equipment for situations on top of the annual investment budget to meet customer s requirement and thus maximizing customer satisfaction. 11. Thailand Post Replacement Node Procurement Plan This is to procure new locations for nodes currently installed inside Thailand Post offices in Bangkok and its vicinity in order to increase convenience and speed in inspection, maintenance, and repair of telecommunication equipment and to prepare new locations for future expansion. 52

58 Wireless Business Investment Plans/Projects 1. Provincial CDMA X Mobile Phone Project This is to expand base stations and repeaters in addition to those implemented in the first phase. Coverage areas will be extended to meet demands and increase customer satisfaction. 2. CDMA Mobile Phone Network Expansion Plan This is to expand the coverage areas and capacity of voice and data services of the CDMA system as well as to improve service quality and meet the demands for high-speed wireless Internet and multimedia use, in line with our vision of Being the leader in domestic wireless multimedia services Direction of Broadband Development CAT expect to development of Wireless service for people with low price, that is development of internet for rural area by network of CAT as well as Wi-Fi service for around 190 Bath/month at speed 2 Mbps. Budget to development of that CAT could ask from USO for implement that also set up internet via satellite in rural area. Although, CAT has implementation of GIN network, set up of backbone and network system but CAT has concern on IP Core technology, that support broadband development and survey of market trend broadband access by them and consultant every year. Consequently, CAT has implemented the high-speed broadband project utilizing such new technologies as Fiber-To-The-X (FTTx), WiMAX, HSPA and CDMA2000 1xEV-DO Rev. A as technologies of choice, thus enabling Thailand to have a high-speed broadband network for use at fair prices and help reduce spending among customers as well. 53

59 7.3 TOT Public Company Limited (TOT) Background TOT is a state-owned company operating under the Ministry of Information and Communication Technology. It was first established in 1954 to provide local and longdistance fixed-line telephony services. TOT has control over the bulk of fixed-line infrastructure in Thailand, through its own network, and through those built by TT&T and True Corp under BTO agreements signed in the early 1990s. TOT operates under a universal service obligation (USO), which obliges it to provide access to potential customers across the country. In more populated areas, it offers domestic fixed-line voice and data services through asymmetric digital subscriber lines (ADSL), integrated services digital network (ISDN) and cable technologies. In more remote areas of the country, it utilizes a range of wireless technologies such as code division multiple access (CDMA), and satellite technologies in partnership with Thaicom. In addition to fixed voice and data services, TOT also provides international direct dialing (IDD) services, leased line and data services for businesses, a VoIP service Y-tel 1234, and pre-paid cards offering both voice calls and Internet access under the Netphone brand. TOT owns and operates nationwide Internet protocol (IP) networks on which voice over IP (VoIP), Internet and IP virtual private network (IP VPN) services are run. Utilizing these networks, the company rolled out innovative services for both businesses and residential users. In 2004 TOT introduced commercial ADSL and wireless local area network (WLAN, through Wi-Fi) Internet access services. Metro LAN networks, which provided businesses with high-speed building to building access, followed in 2005, offering transmission speeds ranging from 2Mbit/s to 1Gbit/s, at a lower cost than asynchronous transfer mode (ATM) services. As of June 2009, TOT operated 74 public Wi-Fi broadband hotspots in Bangkok and 17 other cities. Broadband Internet access generated around 9% of TOT s revenues in 2007, with the service generating revenues of an estimated THB4.4 billion during , representing a broadly unchanged percentage of total revenue from TOT has signed up broadband end-users steadily over the last year, up from 460,000 DSL subscribers at the end of March 2008 to approximately 680,000 in twelve months later. TOT currently offers ADSL broadband services of up to 4Mbit/s download speed and 512kbit/s upstream. 54

60 7.3.2 Basic information on the services of Broadband Broadband and Internet Services of TOT General network line of TOT In 2010 shows below 55

61 56

62 The above diagram shows detail about fiber optic cable line in metropolitan area 57 The above map shows fiber optic cable line in local area

63 IPSTAR application of TOT 1. Public telephone service - IPSTAR for Rural Phone Network 2. Mobile phone services - Access mobile phone in the emergency case or in high traffic area - Be a initial way to access before building fiber optic network - Apply for working with mobile phone 3. Communication and information transferring service - OPTICAL FIBER Are as follows Leased Line, DDN, IDSN, Frame Relay, ATM, ADSL and IPVPN - IPSTAR can be used in the area that communication line or fiber optic can t access 4. Internet service Broadband Internet service via IP STAR in general way that shows below - E-Learning - Video On Demand (VOD) - Interactive Internet TV (IP2 TV) - Public Wireless Internet (Wi-Fi Hotspot) - Internet & Extranet (VPN) - Voice Over IP (VoIP) - ipstar Broadband Access Basic Diagram 5. Video Conferencing and VDO Broadcasting service - Video Conferencing - Tele-Education - Tele-Medicine - Multicast File Transfer - E-Learning - IPSTAR Video Conferencing Application(VDC) Example of customer of TOT and Solution 1. IPSTAR network access equipment 2. ADsl Backhaul IPSTAR 3. BAY Network 4. THAI AIRWAYS INTERNATIONAL 58

64 7.3.3 Policy on Broadband Development TOT moves its business to high speed internet service both via cable and wireless that top-up the existing voice service. TOT wants to keep customer base of voice service and try to make more benefit from potentially fast growing business. It tries to make additional profit from high speed internet service and information communication service especially ADSL service. TOT plan to have 3G mobile phone service while develop other wireless broadband technology such as IPSTAR, Wi-Fi etc. These can provide broadband service nationwide that create strong point for TOT service. TOT has also focused on the development of infrastructure and more efficient preparing for more service and make confidence to customers. TOT as Network Provider and Telecoms Service Provider has a plan to change general network to completely IP-based that make TOT can give ICT Solution for customers to meet it s mission both commercial and government policies. And TOT is also engaged in USO projects to install fixed telephone line and Internet in rural area for over 1,300 schools across the country. In 2010 TOT will finish new broadband IP network for support Next Generation Network (NGN) at Transport Network level that increase potential of the network and support increasing customer demand for multimedia service according to TOT s future business direction. TOT need to install IP network equipment and communication device for switching from the old network to new one Plans and projects for Broadband Development Plan for expanding high speed internet service is important project that build TOT potential network according to business plan. It can support customer demand that tend to use IT service like transfer pictures and videos. High demand makes TOT accelerate an improvements and installation of additional equipments to expand areas of high speed internet access to District level in all areas across the country. Objective of the plan is to finish installation of 577,000 million high speed internet ports within It can make more profit and make TOT as a leader in this business. Moreover it will improve development of IT infrastructure of Thailand Direction of Broadband Development In the future TOT has a plan to build 3G mobile phone network making mobile phone services support voice and data transfer at high speed. It can also support added service in the future and make organization more competitiveness. At the meeting dated 28 September 2010, the Cabinet agreed to TOT request for expanding network to 59

65 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) The Policy of NTC Policy and Duties 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. 60

66 6. Interconnection: Establish rules for interconnection charge on a fair cost-based basis. 7. Telecommunication Numbering: Allocate efficient and adequate telecommunications numbers for network expansion and assign special number for public actives, national security and emergency. 8. Universal Service Access: Strive for equal and universal service access throughout the country. 9. Industry Promotion: Promote competitiveness of telecommunication industry at national and international levels by supporting research and development, and telecommunications equipment manufacturing. 10. Consumer Protection: Set measures that allow consumers to have choices of telecommunications services with standard quality and fair price. 11. Human Resource Development: Promote human resource development for NTC staff. Duties and Responsibilities of NTC Development. services. 1. To set policy and formulate Master Plan on Telecommunications 2. To set criteria and categories of telecommunications services. 3. To permit and regulate the use of spectrum for telecommunications 4. To grant license for and regulate telecommunication services. 5. To set telecommunications licensing requirements and procedures. 6. To set standards and required technical specifications. 7. To set interconnection principles and process. 8. To formulate telecommunications tariff structure and services. 9. To formulate and manage a numbering plan. 10. To formulate criteria on consumer protection. 11. To formulate measures to assure individual privacy and freedom in communication. 12. To formulate criteria for protection and the right to provide telecommunications services. 13. To formulate measures to prevent monopolization or unfair competition. 14. To formulate measures to promote fair and free competition. 61

67 15. To promote telecommunications and IT training and human resources development. 16. To promote research and development in telecommunications, IT, telecommunications industry and related industries. 17. To set rules on the establishment of NTC, personnel management, budget, finance and asset and other NTC s activities. 18. To approve NTC s expenses including fund to be set aside under Section To submit its annual reports to the Cabinet, the House of representatives and the Senate and make them widely known to public. 20. To give advices to the government on telecommunications services both on national and international levels. 21. To perform other acts as provided by law Plans and projects of Broadband Development 1. Pilot projects in developing information technology systems for education in general secondary schools 2. Tele-Center for Education and Rural Development (Pilot Project) 3. Tele-Health in rural area 62

68 7.4.3 Direction on Broadband Development promote the development of an open, vibrant, sustainable and competitive broadband market through: - ensuring the supply of appropriate telecoms infrastructure across the nation, covering local access networks, core networks and international connectivity - prioritizing the development of the regulatory framework to allow access to existing telecoms infrastructure on an open and nondiscriminatory basis where appropriate encourage the private sector to lead the development of the sector, leveraging the public sector where required, including making the best use of public-sector funds to maximize value for money drive broadband take-up through: - educating both businesses and consumers to the benefits of broadband - lowering barriers to subscribing to broadband services - encouraging the development of local content and applications Challenging issue After the ruling by the Administration Court on the power to allocate 3G frequency, NTC have to evaluate its authority related to telecommunication. As the Constitution, only one authority shall be responsible for the telecommunication services. So the roles and duties of NTC has to be redefined some of the work are hauled waiting for the establishment of NBTC. 63

69 7.5 Ministry of Public Health (MOH) Organization structure Scope of operations - 154,413 Medical Staffs - 25 Regional Hospitals - 69 General Hospitals Community Hospitals - 75 Provincial Health Offices District Health Offices - 9,761 Health Centers

70 65 The map shows hospital locations

71 Glossary Structure of Health Data Flows - Provincial Information System : ProvIS - Hospital Information System : H.I.S - Health Centre Information System : J.H.C.I.S - Personal Information System : P.I.S - Data Warehouse - Epidemiology (Meta Cube) 66 - Most of new Application will be Web Application. - Develop by PHP and MySql. - And hope these will lead to ERA of Web Health Services.

72 A database management system (DBMS) is computer software designed for the purpose of managing databases. Typical examples of DBMSs include Oracle, Microsoft SQL Server, MySQL. DBMSs are typically used by Database administrators in the creation of Database systems. A database administrator (DBA) is a person who is responsible for the environmental aspects of a database. In general, these include: - Recoverability - Creating and testing Backups - Integrity - Verifying or helping to verify data integrity - Security - Defining and/or implementing access controls to the data - Availability - Ensuring maximum uptime - Performance - Ensuring maximum performance given budgetary constraints - Development and testing support - Helping programmers and engineers to efficiently utilize the database. The role of a database administrator has changed according to the technology of database management systems (DBMSs) as well as the needs of the owners of the databases. Requests for information from a database are made in the form of a query, which is a stylized question. For example, the query SELECT ALL WHERE NAME = "SMITH" AND AGE > 35 requests all records in which the NAME field is SMITH and the AGE field is greater than 35. The set of rules for constructing queries is known as a query language Policy on Broadband Development Broadband development for health in Thailand defined in Master Plan of Information and Communication Technology of Thailand BE BE 2556, Section 3 of infrastructure development of ICT for Health Centers in rural area, Which could be connect internet at 4 Mbps and Tele center Computer Network in Ministry of Public Health Network Components - Server - Client or Workstation - Communication Equipment ( LAN Card, Hub, Bridge, Switch, Router ) - Transmission Media ( Coaxial, UTP, Fiber Optic ) 67

73 PSTN Link System 68 Dial-up with Modem (Local Call) Local Area Network (LAN) MoPH s Campus Network Leased Line Circuit Link (Permanent) Modem Leased Line Modem INTERNET Router Router Hub Hub Server PC Access Server Access Server PC Server Modem Modem PSTN Modem Modem Modem Modem PSTN

74 Frame Relay Link (Permanent) 69 Router & Multiplexer Frame Relay Router & Multiplexer INTERNET Hub Hub PBX PBX Server PC Access Server Access Server PC Server Modem Modem PSTN Modem Modem Modem Modem PSTN Accessing to MoPH s Network Usage of Broadband for health - Broadband network - 75 Provincial Health Offices are used broadband connection through VPN (TOT network) 1 Mbps. - 80% of Hospitals are used broadband connection through VPN (CAT network) start at 512 kbps. - Community Hospital/government clinic are used broadband connection (For ADSL should more than 2 Mbps.) more than 300 place or equivalent 3%

75 - 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 doesn t have own network. Quality will depend on government or private service. - Wireless internet (Satellite) may be require for remote area. WiMAX Application The WiMAX s pilot project was undertaken at Chiengkhong Crown Prince Hospital, Chiangrai Province, using frequency Interference at GHz GHz. during January December, 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. e-health Plans and projects on Broadband Development 70

76 The World Health Organization broadly defines ehealth as the use of information and communication technologies (ICT) for health. ehealth has the potential to address inequities in health systems and services in developing and developed countries. Its applications span across a wide range of areas such as the use of ICT to: - store, process, and transmit patient information and manage the diverse clinical, administrative and financial information generated in hospitals. - provide mechanisms for diagnostics and treatment between health professionals separated by distance - build capacity by offering health sciences training and continuing education courses online to students Foundation actions - ehealth foundation actions include mechanisms which help build an enabling environment for the successful use of ICT for health. - These can include a supportive ehealth policy framework; attention to rationale infrastructure development; a cohesive and cost-effective approach to procurement; adequate funding in line with country program objectives; building enduring. Telemedicine Telemedicine (also known as telehealth) falls under the broader term of ehealth and involves the delivery of health care services, where distance is a critical factor. The telemedicine approach uses information and communication technologies for the exchange of information for diagnosis, treatment and prevention of diseases and for the continuing education of healthcare providers. Some of the more established fields of telemedicine include, teleradiology, teledermatology, telepathology. The WiMAX s Pilot Project at Chiengkhong Crown Prince Hospital, Chiangrai Province, during January December, 2009 There are 4s in the Project. 1. Chiangkhong Crown Prince Hospital 2. Satan PCU/Health Center 3. ThungNgiew PCU/Health Center 4. Nammah PCU/Health Center 5. Chiangkhong District, Chiangrai Province 71

77 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 e-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 PCU s 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 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. 72

78 7.6 Ministry of Education (MOE) Policy on Broadband Development Ministry of Education has the policy on network development for education (Ned Net). By setting up a private technology institution under the supervision of the Ministry of Education, the organization is to provide network for every office and school under the Ministry. The main mission is to provide internet for education and research, be a learning resources to promote e-learning and teleconference, IP television, center for information and education management Computer Network in Ministry of Education Ministry of Education has education project on connection every office with 4 Gbps. This project is called National Education Network or NEdNet. It will connect all education centers around 35,000 locations and 20,000 remote education centers as shown in MOENET Network Diagram. 73 MOENET Network Diagram

79 7.6.3 Plans and projects on Broadband Development Ministry of Education set mission to connect NEdNet network with UniNet (university network). It will enhance efficiency and up grade bandwidth to 10 Gbps. Due to currently 4,000 school and institute are out of internet connection. Some of them need to pay for renting network value at 12 million baht per year. For example: - IP-Star(2Mbps) cost 1,900 baht per station (One station is support 10 PCs) - Leased line (for VEC) at 4 Mbps cost 9,000 baht per station (One station is support around PCs) - xdsl cost 1,200 baht per station (One station is support 80 PCs) 74 CRI1 CRI2 PYO1 MHN PAI PYO2 LPG1 NAN NKI1 NKI2 LPN PRE NNOM2 LPG2 UTT LOEI1 UDI(L,R) SKN2 NNOM1 TAK KPP(L,R) SKT PLK1(L,R) PLK2 LOEI2 PBOON2 Nongbualamboo KKN2 KSIN SKN1(L,R) CPHUM MHAN Phichit KKN1(L,R) Roiet Yasothon AMREN UTN2 UTN1 NSN(L,R) PBOON1 NSM2 MKAM SPBI2(L,R) CNAT SING ATG LBRI SRRI NSM1 (L,R) Burirum Surin Sisaket Ubon(L,R) KCRI SPBI1 AYA1(L,R) AYA2 PTI1 PTI2 NYOK Prajinburi RTRI NPT(L,R) SSKON CCO Sakeo SSKAM Chonburi CHBRI2 PTRI2 PTR1(L,R) RYG CHBRI1 Trat PCP3 PCP1 PCP2 NON To patumthani (PTI1(L,R)) To chachoengsao (CCO) RNG1 CPN BSE HMK PYT 1,2 BKN (L,R) PYT (L,R) PTW (L,R) RNG2 To nakornpathom TPJ BMD (L,R) PSM (L,R) PNG1 SRT(L,R) SLY PNG2 To samutsakorn To samutprakarn PKT PNG3 Krabi NSIRAT Trang PTLG SKA(L,R) STOOL Yala Pattani Narathiwat Legend Metropolitan Area DWDM NODE Core Router Distribute Router Old Distribute Router Dark Fiber NEdNet Backbone (UniNet2) NEdNet Backbone Network

80 75 Network management following OSI model standard Direction on Broadband Development In the future Ministry of Education is going to work on project of wide area wireless internet access (WiMAX), it will gain efficiency and reduce cost. The development must be the network for non-commercialize (education only) and it has to cover wider bandwidth for support higher traffic at low cost. Integrated Internet Bandwidth (IIB)

81 Last Mile Connectivity 76 Other Last Mile Technology At Present - DWDM - IP Star - ADSL - CDMA - APLS In Future - WIMAX - WIFI

82 7.7 National Electronics and Computer Technology Center (NECTEC) Background The National Electronics and Computer Technology Center (NECTEC) was established on 16 September 1986, initially as a project under the Office of Permanent Secretary, Ministry of Science, Technology and Energy (the former name of the Ministry of Science and Technology). In 1991, following the enactment of the Science and Technology Development Act of 1991 NECTEC was transformed into a specialized national center under the National Science and Technology Development Agency (NSTDA), a new agency under the Ministry of Science and Technology. NECTEC's main responsibilities are to undertake, support and promote the development of electronics and computer technologies through research and development activities. NECTEC also provides a linkage between research communities and industries through the established industrial clusters. Vision Being a core organization collaborating with alliances in R&D of electronics and computer technologies for strengthening sustainability of Thai industries and sufficiency society Missions NECTEC contributes to the development of Thailand's capability in electronics and computer technologies through: - Research, development, design and engineering - Technology transfer to industries and communities - Human resource development - Policy research and industrial intelligence and knowledge infrastructure Research Laboratories Industrial Capacity Building Group (ICB) - Embedded System Technology Laboratory (EST) - Industrial Control and Automation Laboratory (ICA) - Open Source Software Laboratory (OSS) - Digital Media Lab (DML) - Software Engineering Laboratory (SWE) 77

83 - Computer and Peripheral Testing Laboratory (CPTL) Platform Technology Capacity Building Group (PTB) - Nano-Electronics and MEMs Laboratory (MEMs) - Optical and Quantum Communications Laboratory (OQC) - Wireless Innovations and Security Laboratory (WIS) - Network Technology Laboratory (NTL) - Knowledge Elicitation and Archiving Laboratory (KEA) - Large Scale Simulation Research Laboratory (LSR) - Human Language Technology Laboratory (HLT) - Image Technology Laboratory (IMG) - Biomedical Signal Processing Laboratory (BSP) - Photonics Technology Laboratory (PTL) Policy and Strategy for the Information Economy and Society Research Group (PSR) - Strategy Research & Industry Indicator Division (SRI) - Ethical Legal and Social Impact of Information Technology Research Division (ELS) Electronics, Computer, and Information Technology for Social Research Group (ESR) - Rehabilitative Engineering and Assistive Technology Institute Laboratory (REAT) R&D Special Projects Group (RSP) - Thailand Microelectronic Center (TMEC) Collaborations To pursue the NSTDA's vision of being a key partner in developing a knowledgebased society through the application of science and technology, creating partnership is considered to be a strategy of NECTEC in both global and regional levels. There are not only the public and private sectors, but also academies and the society considered to be NECTEC's partners for researching and developing technological capability aimed for the national economic and social development. NECTEC has considered that building the R&D partnership with leading research institutes in the international forums will strengthen NECTEC's capacity in electronics and computer technologies. The main strategies of NECTEC's international affairs aimed for supporting R&D in electronics and computer technologies, developing human resources and 78

84 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 79

85 80 2. Wireless Broadband for Community Rural Wireless Broadband Access (RWBA) RWBA is the project to develop wireless broadband communication system on Thai s internet protocol (IP) technology initiated by NECTEC. The objective is to reduce digital divide problem, expand the internet and telephone service to community and rural area. (Wireless Local Loop - WLL) The cost is around 2,000 Baht per one unit per one subscriber. Wireless Local Loop is the system that provides wireless link connection between telephone subscriber and PSTN. Each subscriber will be easily connected to Cell Station by wireless instead of the wire-line link.