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ANALYSIS OF THAI INTERNET AND TELECOMMUNICATIONS POLICY FORMATION DURING THE PERIOD 1992-2000 A Dissertation Presented to The Faculty of College of Communication of Ohio University In Partial Fulfillment of the Requirement for the Degree Doctor of Philosophy by Busakorn Suriyasarn June 2002 2002 Busakorn Suriyasarn All Rights Reserved This dissertation has been approved for the School of Telecommunications and the College of Communication by Drew O. McDaniel Professor of Telecommunications Kathy Krendl Dean of the College of Communication SURIYASARN, BUSAKORN Ph.D. June 2002. Mass Communication Analysis of Thai Internet and Telecommunications Policy Formation during the Period 1992-2000 (335pp.) Director of Dissertation: Drew O. McDaniel The 1990s was a time of profound economic and political transformation for Thailand. Through major events of economic boom and bust, 1992 political crisis, and democratization of politics, Thailand drafted a new constitution and undertook major political and economic restructuring. Within the context of Thai telecommunications policy restructuring from the beginning of the 1992 to the end of 2000, this study describes the development of Thai Internet and analyzes the policymaking process of telecommunications industry reforms. The study employs John W. Kingdon’s political model of policy process and J. P. Singh’s conceptual framework of factors determining telecommunications restructuring and state types in decision-making process to analyze the role of multiple policy forces and the role of the Thai state in network policy formation. While the main impetus for restructuring is Thailand’s aspiration to become the economic hub of Southeast Asia, a myriad of forces are found to be at work in telecommunications policy reforms. Economic integration and global liberalization agenda enforced by the WTO and the IMF have had direct impact on the country’s policymaking. Domestically, in the juxtaposition of maturing democracy and intensifying money politics, business interests become increasingly influential in telecommunications policymaking through more direct political maneuvering at the top levels. There is also a burgeoning influence from public interest groups and the Senate. The plurality of interests in the policy process hampers the ability of the state to direct policy outcome. In the system where policymaking is plagued by vested interests and political squabbles, the policymaking function of the state is seriously undermined and the development of Thai Internet suffers as a result. Approved: Drew O. McDaniel Professor of Telecommunications 6 ACKNOWLEDGMENTS A long list of individuals provided time, encouragement, assistance and support during the course of this research. I would like to convey my thanks to those who granted me interviews in Thailand and my dissertation committee who provided guidance and constructive criticisms that made this research a better one. Special appreciation is owed to Professor Don Flournoy for copy editing work. Most notably, this research would not have been completed without my academic advisor, Professor Drew McDaniel, whose unfailing support, encouragement, and exemplary discipline and professionalism have guided and inspired me throughout the course of my studies at Ohio University. He has shown me through example the meaning of a good teacher and the practice of responsible scholarship. Even in my doubt and confusion, his patience and expectations helped sustain my confidence and encouraged me to strive to become a better student and a better scholar, for which I am in profound debt of gratitude. 7 TABLE OF CONTENTS Page ABSTRACT . 4 ACKNOWLEDGMENTS . 6 LIST OF TABLES . 12 LIST OF FIGURES . 14 CHAPTER 1. INTRODUCTION . 15 Rethinking Communication Research . 15 The Internet and Policymaking . 20 Statement of Purpose . 26 Chapters Overview . 27 2. LITERATURE REVIEW: COMMUNICATION RESEARCH AND POLICY STUDIES . 29 Political Economy and Communication Policy Studies . 29 Dependency and world systems perspectives . 32 Pluralist perspective . 34 Class power perspective . 35 Important Concepts in Communication Policy Research . 38 What is communication policy? . 38 Concepts in telecommunications restructuring . 40 Universal service . 40 Privatization . 40 Liberalization . 41 Commercialization . 41 Deregulation/Re-regulation . 41 Internationalization/Globalization . 42 Telecommunications Restructuring: From Monopoly to Competition . 42 Thai Communication Research and Policy Studies . 48 Politics of policymaking in Thai telecommunications . 56 8 CHAPTER Page 3. RESEARCH METHODOLOGY AND POLICY MODELS . 62 Data Gathering . 62 Secondary data . 62 Primary data . 63 Interview questions construction . 63 Interview procedure . 64 Field observations . 67 Data Analysis . 68 Transcribing, translation and transcription coding . 68 Keeping data updated . 69 Policy Models . 69 Kingdon’s political model of policy process . 70 Singh’s telecommunications restructuring factors and state characteristics . 75 4. HISTORICAL OVERVIEW OF THAI TELECOMMUNICTAIONS REFORMS AND EARLY INTERNET DEVELOPMENT . 83 Brief History of Telecommunications Regulatory Structure . 83 Political and Ideological Contexts of Telecommunications Reforms . 86 Political environment . 86 Thai telecommunications reforms . 93 1997 constitution . 99 Readjustment of Eighth National Economic and Social Development Plan (1996-2001) . 102 WTO: Basic Telecommunications Agreement (BTA) . 104 Telecommunications Master Plan (1997-2006) . 107 Historical Development of Thai Internet . 109 Emergence of Thai Internet . 109 Early Internet community in Thailand . 112 Commercialization of Thai Internet . 114 IT 2000 Plan and NII development policy . 119 5. REGULATORY ANALYSIS OF THAI INTERNET INDUSTRY . 122 Brief Internet Industry Overview . 122 State Monopoly and Sluggish Internet Expansion in the 1990s . 130 9 CHAPTER Page Implications of CAT’s monopoly for Thai Internet growth 132 Price controls . 132 32-percent free equity holding condition . 140 Anti-competitive restrictions . 142 Beginning of Thai Internet Growth and Emergence of Competition in 1999-2000 . 144 Factors favoring Internet growth in 1999 and 2000 . 145 Establishment of the second domestic Internet exchange by NECTEC . 145 Economic rebound . 147 Growth in international and domestic bandwidth . 148 Competition and lower Internet access charges . 149 Tensions between Market Competition and State Monopoly . 150 Regulatory control and international connection monopoly by CAT . 150 CAT’s explanations for 32-percent free equity holding . 151 High leased-line costs . 152 CAT vs. TOT dispute over IP network leasing authority. 155 Delayed domestic liberalization and regulatory vacuum . 158 Key Industry Players: Who’s Got the Networks?. 161 Commercial Internet Service Providers (ISPs) . 163 Domestic Networks . 166 Fixed-line telephone . 166 Fiber optic networks . 166 IP network . 167 Mobile & Wireless . 167 Mobile telephone . 167 Personal communication telephone (PCT) . 168 Wireless application protocol (WAP) . 169 International Networks . 170 International Internet connections . 170 Asian Internet Network (AIN) . 172 Asian ATM telecommunications services . 172 Satellite Networks . 173 International satellite services . 173 Domestic satellite services . 174 Foreign Partners in Thai Telecommunications . 174 10 CHAPTER Page 6. UNIVERSAL SERVICE AND ROLE OF THE THAI STATE . 177 Thai Universal Service: “Telephone in Every Village”. 179 Universal Access Act, B.E. 2543 (2000) . 188 Thai Public Internet Model: Restricted and Controlled Access . 191 Thai Internet User Profile . 194 State Role in Internet Access Provision . 199 NECTEC-operated national IT development projects . 200 Government Information Network (GINet). 200 SchoolNet . 204 Agricultural Economics Office’s Rural Internet for Farmers Project . 213 RuralNet . 213 Public Internet Projects by TOT & CAT . 220 Thailand’s Internet Policy Task Force (IPTF) . 222 7. POLITCY POLITICS OF THAI TELECOMMUNICATIONS . 224 NECTEC and NITC: New Think-Tanks in Policy Politics . 224 Perceptions of NECTEC and NITC as new think-tanks . 224 Software Park and politicization of NECTEC . 230 Telecommunications Liberalization, Private Participation and Corruption . 233 TOT’s three-million-line telephone project. 236 Ministry of Education’s computer procurement scandals. 238 The Rise of the Businessmen and Their Influence in Politics and Policy. 241 Businessmen-turned-politicians . 242 Thaksin, Shin Corporation and Thai Rak Thai Party . 243 Formation of New Independent Regulatory Bodies and Irregularities . 248 National Telecommunications Commission (NTC) . 249 National Broadcasting Commission (NBC) . 251 8. CONCLUSIONS . 254 Environmental and Institutional Policy Factors. 257 External forces . 258 Domestic forces . 262 11 CHAPTER Page Role of Ideas . 267 Policy Factors in Thai Internet Network Formation . 272 Characteristics of the Thai State as Policy Actor . 275 Implications for Future Role of the Thai State . 281 REFERENCES. 286 APPENDIX A: Abbreviations . 309 APPENDIX B: Personal Communication References . 313 APPENDIX C: List of NITC Subcommittees . 315 APPENDIX D: Flow Chart Major Thai Telecommunications Operators . 318 APPENDIX E: Universal Access Act, B.E. 2543 (200) . 320 APPENDIX F: NITC Order No. 15/1999 Appointment of Subcommittee on Thailand’s Internet Policy Task Force . 333 12 LIST OF TABLES Table Page 2.1. Thai State Media System Compared to Public Service System and Free Market System . 53 3.1. State Decision-Making
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