THAILAND S E- COMMERCE READINESS ASSESSMENT By Thawatchai Sophastienphong
SIX E-COMMERCE READINESS INDICATORS BASIC INFRASTRUCTURE AND TECHNOLOGY ACCESS TO NECESSARY SERVICES CURRENT LEVEL AND TYPE OF USE OF THE INTERNET PROMOTION AND FACILITATION ACTIVITIES SKILL AND HUMAN RESOURCES POSITIONING FOR THE DIGITAL ECONOMY
INDICATOR 1 BASIC INFRASTUCTURE AND TECHNOLOGY
ACCESS TO BASIC INFRASTRUCTURE -10 PERCENT OF THE POPULATION HAS A TELEPHONE LINE. -LESS THAN 25 % OF TOTAL LAND AREA HAS ACCESS TO DIGITAL WIRELESS. -25 % OF TOTAL LAND AREA HAS ACCESS TO CABLE.
POLICY ACTION -THE TOT S PROJECTS OF INSTALLING 2.6 Mil. LINES IN BANGKOK AND 1.5 Mil. LINES IN THE UPCOUNTRY BY 2 PRIVATE ENTITIES ARE COMPLETED. -1.6 MILLION LINES ARE BEING PLANNED. -BY 2005 TELEPHONE DENSITY IS EXPECTED TO BE 6.6 TO 1
SPEED AND FUNCTIONALITY OF THE INFRASTRUCTURE -THE HIGHEST CONNECTION SPEED AVAILABLE TO CONSUMER USERS IS 385 KBPS TO 1.5 MBPS AND TO BUSINESS USERS IS 45 MBPS. -THERE IS LESS THAN 1 % OF ISDN SUBSCRIBERS PER 1,000 MAINLINES. -LESS THAN 5 % OF TOTAL RESIDENTIAL LINES ARE ADDITIONAL (NON PRIMARY) LINES.
THE AVERAGE CAPACITY OF THAILAND S CONNECTION WITH ITS NEIGHBORS - 250 MBPS FOR ASEAN - 500 MBPS FOR ASIA INCLUDING AUSTRALIA - 200 MBPS FOR EUROPE - 200 MBPS FOR THE U.S.
Price A FLAT RATE OF 3 BAHT PER CALL USERS ARE CHARGED ON A TIME BASIS OF 900 BAHT/20 HOURS. RETAIL PRICE FOR A 50 KM 2 MBPS LEASED LINE IS 75,000 BAHT/MONTH FOR BANGKOK AND NEARBY PROVINCES.
RELIABILITY OF THE INFRASTRUCTURE NETWORK CONNECTIONS FAIL IS 4-6 PERCENT RATE OF PACKET LOSS IS 5-10 PERCENT.
AVAILABILITY OF TERMINAL EQUIPMENT LESS THAN 5 PERCENT OF THE POPULATION HAS A PERSONAL COMPUTER AT HOME. 30 PERCENT OF THE POPULATION HAS a TV. LESS THAN 5 PERCENT OF THE POPULATION HAS A MOBILE PHONE.
MARKET ACCESS CONDITIONS IN TELECOMMUNICATION SERVICES BASIC TELECOM SERVICES ARE OPERATED UNDER MONOPOLY OF 2 STATES ENTERPRISES NAMELY - TELEPHONE ORGANIZATION OF THAILAND - COMMUNICATION AUTHORITY OF THAILAND BOTH ARE UNDER THE MINISTRY OF TRANSPORT AND COMMUNICATIONS
TELEPHONE ORGANIZATION OF THAILAND (TOT) Thailand s only supplier of domestic telephone services and international long distance services to Cambodia, Myanmar, Malaysia, and Laos. TOT also provides domestic fixed-line, trunked mobile radio, cellular mobile, paging, VSAT, data communications and videotex services.
COMMUNICATIONS AUTHORITY OF THAILAND CAT is the only supplier of public data network (IP, ATM, Frame Relay, X.25), internet service, worldwide international telephone/isdn services in Thailand. CAT also provides cellular mobile, trunked mobile radio, paging, VSAT, telex leased circuits, data communications and postal services.
INTERNATIONAL COMMITMENTS ON BASIC TELECOM SERVICES Thailand participated in the1997 WTO negotiations on basic telecom services, and in its Schedule on Basic Telecom, bound both cross-border and consumption abroad of basic telecom services, subject to licensing and other requirements. Thailand undertook to introduce, by 2006, commitments regarding commercial presence in public local, long-distance, and international voice telephone services as well as telex, telegraph and fax on the basis of proposed new Telecommunications Law
MASTER PLAN FOR TELECOMMUNICATIONS DEVELOPMENT The first Master Plan was approved by the Cabinet in 1993. The latest amendment was approved by the Cabinet in November 1997.
12 KEY TELECOMMUNICATION Liberalization of telecom industry Increasing private participation Establishment of an independent national regulatory body Privatization of TOT and CAT Separation of postal service from telecom service Consumer protection POLICIES Promotion of telecom R&D Telecom HRD Support of IT, computer technology and multimedia technology development Laws revision Adjustment of the tariff structure Thailand to be the Regional Center of Telecom
IMPLEMENTATION OF THE MASTER PLAN A new Act on Establishment of a National Regulatory Body to allocate and regulate radio broadcasting, television and telecom activities went into force as of 8 March 2000. A new Telecommunications Act was approved by the Cabinet and is forwarded to the Parliament for approval within next session.
THE MAIN POINT OF TELECOM MASTER PLAN Abolition of the state monopoly. TOT and CAT are to become telecom operators and be transformed into public companies. TOT and CAT will then be privatized. The National Regulatory Body will take up the regulatory responsibility from CAT and TOT.
INDICATOR 2 ACCESS TO NECESSARY SERVICES
DESCRIPTION OF THE MARKET FOR ISPs IN THAILAND - Thailand has 17 ISPs, 4 noncommercial internet hubs, and 2 domestic internet exchanges. - Total international bandwidth to Thailand is 203.75 Mbps. - Total international bandwidth from Thailand is 155.25 Mbps. - There are 1 million internet users.
CAT s REQUIREMENTS FOR THE ESTABLISHMENT OF AN ISP 1. Applicant must be either in the telecom or computing industry. 2. The new entity must be a joint venture with CAT, which will get 33 percent of the total equity as a licensed fee. 3. Every ISP must buy leased circuits to the internet from CAT. 4. ISPs must establish a BTO (Build-Transfer- Operate) contract with CAT.
INDICATOR 3 CURRENT LEVEL AND TYPE OF USE OF THE INTERNET
CURRENT LEVEL OF USE OF THE INTERNET - Number of internet hosts under the domain of Thailand, thai is.th is 71,995. - Number of internet hosts under.th as a percentage of the population is 0.12. - There are 3,846 internet domains under.th.
USE OF INTERNET TECHNOLOGIES 1. Government Information Network (GINet) Program BY THE GOVERNMENT 2. Government Chief Information Officer (CIO) Program
THE BUSINESS COMMUNITY S USE OF THE INTERNET A survey done by Electronic Commerce Resource Center under NECTEC on 3,120 Thai web sites at the end of 1999 indicated that -6 % of the web sites are with electronic commerce activities. -9 % of the web sites can do full e-commerce transactions as they are equipped with all necessary systems (payment, delivery, security and tracing systems).
INTERNET USER PROFILE OF THAILAND According to NECTEC s survey from August to October 1999 - Internet users consist mainly of males (65%). - Most of internet users are between 20-29 years old. - Goods being purchased through the internet are books, computer software, music, information, computer equipment, film, electrical appliances, food, etc.
INDICATOR 4 PROMOTION AND FACILITATION ACTIVITIES
AWARENESS RAISING MINISTRY OF COMMERCE : The E-Commerce Pilot Project for Exports www.thaiecommerce.net NECTEC : Electronic Commerce Resource Center (ECRC)
INDICATOR 5 SKILL AND HUMAN RESOURCE
Less Than 30 percent of schools in Thailand have access to the internet. This proportion is expected to grow rapidly as a result of an ambitious program launched by NECTEC. SchoolNet program was launched in late 1995.
SCHOOLNET PROGRAM - SchoolNet@1509 is the first nationwide, free access network for education in the ASEAN region. - The network can be accessed by dialing the number 1509 from anywhere in Thailand. - The cost of access SchoolNet@1509 is just the cost of a local telephone call of 3 baht per call.
ELECTRONIC COMMERCE RESOURCE CENTER - To create public awareness and understanding of electronic commerce. - To collect, publicize information on electronic commerce and monitoring electronic commerce development of both government and private sectors. - To create capacity building in terms of human resources ranging from training to educational programs.
INDICATOR 6 POSITIONING FOR THE DIGITAL ECONOMY
THAILAND S ELECTRONIC COMMERCE POLICY FRAMEWORK - Electronic commerce is considered an important trade strategy for Thailand. - Electronic commerce will have to be included in the 9th and 10th National Economic and Social Development Plan. - The role of government is to promote and facilitate the development of e-commerce. - Government should avoid imposing regulations and bureaucratic procedures that impede the development of e-commerce.
NATIONAL SUB-COMMITTEE ON ELECTRONIC COMMERCE POLICY - Study the impact of electronic commerce. - Develop and implement a number of policy and formulate position for negotiation at international level. - Coordinate policies and actions of public and private sector in order to develop the national capacity for supporting the growth of electronic commerce.
TAXATION - The Thai government supports the temporarily extension of the WTO standstill of customs duties imposed on electronic transmissions. - Thailand s taxation policy promotes tax neutrality between on-line and off-line transactions. - Taxation policy is consistent with international agreed principles.
THAILAND S SIX IT-RELATED LAWS Electronic Transaction Act B.E. Electronic Signature Act B.E. Data Protection Act Electronic Funds Transfer Act Computer Crime Act Universal Access Act
THE PROGRESS OF DRAFTING THE SIX IT-RELATED LAWS Electronic Transaction Act and Electronic Signature Act have been approved by the Cabinet and are forwarded to the Parliament for approval within next session. The Electronic Transaction Act, based on UNCITRAL Model Law on Electronic Commerce, recognizes the validity of electronic contracts. The Electronic Signature Act will provide the security and authentication of electronic transactions. The rest of IT-Laws are now under the drafting process.
SECURITY AND ENCRYPTION The use of strong encryption is allowed. Users are free to choose the most appropriate encryption solution. No import and/or export restrictions on encryption products and services. Encryption products/ services doesn t need to undergo testing and certification requirements. No legislation regulating data access.
COPYRIGHT Thailand didn t sign WIPO Treaty on Copyright. Thailand is a signatory to the Bern Convention on the Protection of Literary and Artistic Works. Thailand is also a signatory to the Paris Convention for the Protection of Industrial Property.
CONTENTS The government may need to apply discretion in restricting commercial transactions harmful and immoral content on the internet. The government may need to promote filtering technology on the web.
CONSUMER PROTECTION The legal implication is to encourage a uniform rule with seamless treatments involving consumers protection guidelines and policies based on legal contracts.
STANDARD DEVELOPMENT Working Group on Development of Standard for Smart Card in Thailand has worked on the development of Thailand s smart card standard application requirements, and the establishment of guidelines for the development of Public Key Infrastructure (PKI). The first Certification Authority will be set up by NECTEC and will be able to offer services to public agencies by the end of 2000.