Last updated: 19 Apr 2011 Update History
Report Status: Archived
Report Pages: 118
Analyst: Peter Evans
Publication Overview
This report provides a comprehensive overview of the trends and developments in the telecommunications and digital media markets in Thailand. Subjects covered include:
Researcher:- Peter Evans
Current publication date:- April 2011 (17th Edition)
Next publication date:- March 2012
Executive Summary
After almost a decade of strong growth in its telecom sector, Thailand was hit by a serious economic downturn in 2009 as a consequence of the global financial crisis. At the same time the country’s ongoing political problems were having a negative impact on the national economy with a significant downturn in investment being a major concern.
Not surprisingly there was a cooling in demand for mobile services in 2009 through 2010 and into 2011. In the meantime, mobile penetration had managed to pass the 100% penetration mark. Growth in the mobile market looked to be picking up again in 2011, although there would be no return to the boom years. Fixed-line development was virtually non-existent, despite the government’s keenness in promoting this. There had been some interesting activity in the broadband internet market; but this was essentially high growth off a relatively small base. The good news was that the surge in broadband that started back in 2007 was continuing into 2011.
In the wider telecom sector, there was a feeling that a loss of direction was creeping into the market. If any one thing characterises the Thai telecom industry it is probably the stop-start approach to sector reform and re-regulation. An important step was taken when a new Telecommunications Act was enacted a decade ago, but the government moved slowly on the implementation of this legislation.
Most critically it was not until 2004 that the National Telecommunications Commission was finally set up and working. Some good work was subsequently done in the regulatory area; but the industry continues to be frustrated by delays in reform; the uncertainty that these delays create has been the big concern. The National Telecommunications Commission has been trying hard for many years but the regulatory environment has not had a sustained period of consistent policy since the commission was established. In the meantime, one of the urgently needed reforms, the long-awaited restructuring of the two state-owned operators, TOT and CAT Telecom, continued to be postponed. This meant that the critical task of concession conversion also continued to be unresolved.
By 2011 the National Telecommunications Commission was effectively a ‘lame duck’ regulator with the government finally moving to create the National Broadcasting and Telecommunications Commission. Although this new authority was not likely to be operational until late 2011 and would take time to ‘get up to speed’ the National Telecommunications Commission was finding it increasingly more difficult to carry out its role.
The biggest setback was the failure of the National Telecommunications Commission to hold the 3G auctions and to issue these long-awaited licences. The situation with respect to 3G was proving to be a national embarrassment for Thailand. There were also serious concerns in some quarters that the new regulator when finally installed would not be a truly independent authority. In any event one effect of all this was that foreign investors were remaining cautious about the Thai telecom market.
Market highlights:
Thailand: - key telecom parameters – 2010 - 2011
Category |
2010 |
2011 (e) |
Fixed-line services: |
|
|
Total number of subscribers |
7 million |
7 million |
Annual growth |
-3% |
0% |
Fixed-line penetration (population) |
10.4% |
10.3% |
Internet: |
|
|
Total number of subscribers1 |
7 million |
8.5 million |
Annual growth |
17% |
21% |
Internet subscriber penetration (population) |
10.2% |
12.4% |
Mobile services: |
|
|
Total number of subscribers |
71.6 million |
77 million |
Annual growth |
6% |
9% |
Mobile penetration (population) |
105% |
112% |
(Source: BuddeComm)
Note: 1Estimates for both 2010 and 2011.
Data in this report is the latest available at the time of preparation and may not be for the current year.
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