Thailand Internet Case Study
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BITS AND BAHTS: THAILAND INTERNET CASE STUDY March 2002 INTERNATIONAL TELECOMMUNICATION UNION GENEVA, SWITZERLAND Vanessa Gray, Tim Kelly and Michael Minges wrote this report. It is based on field research undertaken 20-25 August 2001 as well as documents and articles identified in the footnotes. We would like to thank Hugh Thaweesak Koanantakool (NECTEC), Sira Limchareon (CAT) and Maevadi Hungspreugs (NECTEC) for their valuable com- ments on the draft version of this report. The views expressed are those of the authors and may not necessarily reflect the opinions of the International Telecom- munication Union (ITU) or its members. This report is one of a series of Internet Case Studies being carried out in the South East Asia region. Additional information is available on the Internet Case Studies web site at: <www.itu.int/ITU-D/ict/cs>. © ITU 2002 ii Contents 1. Country background ............................................................ 1 1.1 Overview ............................................................................ 1 1.2 Demography ........................................................................ 1 1.3 Economy ............................................................................. 2 1.4 Human development ............................................................ 3 1.5 History................................................................................ 4 2. Telecommunication and mass media ................................... 5 2.1 Telecommunications Sector ...................................................5 2.2 Public Telecommunication Operators ....................................... 6 2.3 Regulation and policy-making .............................................. 11 2.4 Tariffs ............................................................................... 13 2.5 International traffic ............................................................ 15 2.6 Mass Media ....................................................................... 16 3. The Internet in Thailand .................................................... 19 3.1 The market today ............................................................... 19 3.2 Broadband ........................................................................ 20 3.3 Regulatory and policy issues ................................................ 21 4. Sector absorption .............................................................. 29 4.1 Government ...................................................................... 29 4.2 Education .......................................................................... 32 4.3 Health .............................................................................. 36 4.4 e-commerce ...................................................................... 37 5. Conclusions ....................................................................... 42 5.1 State of the Internet........................................................... 42 5.2 Recommendations .............................................................. 43 Annex 1: List of meetings........................................................ 47 Annex 2: Acronyms and abbreviations .................................... 48 Annex 3: Useful links .............................................................. 50 Annex 4: Framework dimensions ............................................ 51 Annex 5: Bibliography ............................................................. 54 iii Figures 1.1 Map of Thailand ................................................................... 1 1.2 Baht takes a dive ................................................................. 2 2.1 Thailand, network development ............................................. 5 2.2 Actual foreign ownership and proposed limits ........................ 12 2.3 Comparative tariffs ............................................................. 15 3.1 ThaiSARN3 Network ........................................................... 19 3.2 Thai Internet market .......................................................... 20 3.3 Internet exchanges in Thailand ............................................ 22 3.4 The cheapest and one of the most expensive ......................... 23 3.5 Thai Digital Divide .............................................................. 25 4.1 Thailand's ICT organizations ................................................ 29 4.2 Thailand ICT strategies ....................................................... 30 4.3 SchoolNet ......................................................................... 34 4.4 e-commerce in Thailand ...................................................... 37 4.5 We don't want to buy online ................................................ 39 4.6 National Concept for Sustainable Economic Development in the Rural Areas .............................................................. 40 4.7 1 Tambon 1 Product Project ................................................. 40 5.1 State of the Internet in Thailand .......................................... 42 Tables 1.1 Population indicators ............................................................ 2 1.2 Visit Thailand ....................................................................... 3 1.3 Human Development Indicators ............................................. 3 2.1 Build-Transfer-Operate concessions ........................................7 2.2 The big five revenue sharing agreements ................................ 8 2.3 Main telecommunication indicators for Thailand, 1991-2000 .... 14 2.4 Thai TV ............................................................................. 17 2.5 Thai broadcasting indicators ................................................ 18 3.1 ISPs in Thailand ................................................................. 21 3.2 Prepaid Internet pricing ...................................................... 23 3.3 The TH World ..................................................................... 24 4.1 Thailand at school .............................................................. 33 4.2 Thailand Health Facts .......................................................... 37 4.3 The Economist Intelligence Unit/Pyramid Research e- Readiness Rankings ............................................................ 38 5.1 Falling behind .................................................................... 44 Boxes 2.1 IP Telephony in Thailand .......................................................9 2.2 Mobile data in Thailand ....................................................... 11 3.1 Thailish: Thailand, English and the Internet ........................... 27 4.1 ICT in Thailand's National Development Plan ......................... 30 iv 1. Country background 1. Country background 1.1 Overview Figure 1.1: Map of Thailand The Kingdom of Thailand, with an area of 514’000 square kilometres, is located in the centre of South East Asia. It shares borders with Myanmar to the northwest and west, with Laos to the northeast and east, Cambodia to the southeast and Malaysia to the south. Thailand, which means ‘the land of the free’, has a 1’840 kilometre coast on the Gulf of Thailand to the east and an 865- kilometre coast along the Andaman Sea to the west. Topographically the country is divided into four distinct areas: the mountainous North, the fertile Central Plains, the semi-arid plateau of the Northeast, and the Southern Peninsula, with its tropical beaches and offshore islands. Thailand has a tropical climate and three distinct seasons: the cool season from November to February, the hot season from March to May and the rainy season from June to October. 1.2 Demography The decennial Population and Housing Census reported a population of 60.6 million on 1 April Source: The World Factbook. 2000, making Thailand the fourth largest country in South East Asia. Annual population live in the country’s capital, Bangkok. growth from 1990 - 2000 was 1.05 Administratively, the country is divided per cent. The country’s average into seven regions, 76 provinces, household size in 2000 was 3.9. About 7’255 tambons (grouping of villages) two thirds of the population live in and 69’866 villages. About one rural areas and one third resides in quarter of the population is under the urban areas. Some 6.3 million people, age of 15 while nine per cent is over about ten per cent of the population, 60. While the population is 1 Thailand Internet Case Study back to 1994 levels. According Table 1.1: Population indicators to the 1999 household survey, 16 per cent of the Item Year 2000 population lived below the poverty line, compared to Total population (million) 60.6 11 per cent in 1996, Population growth rate 1.1 reversing earlier gains. The Population density (per sq.km.) 118 country’s Gross National Rural population (%) 68.9 Income per capita was US$ 2’010 in 2000. Age Distribution : Below 15 years (%) 24 15-59 years (%) 67 The government responded 60 years and older (%) 9 with a comprehensive emergency programme, assisted by a US$ 14 billion Source: ITU adapted from National Statistical loan from bilateral and Office. multilateral institutions. The economy started to recover in 1999. Despite the declining value of the Baht, GDP predominantly Thai (around 90 per rose by 4.2 per cent in 1999. After cent), the most important ethnic two years of recovery and a GDP per minority are the Chinese. Other capita growth rate between 4 and 4.5 minorities include Malays, per cent in 1999 and 2000, it is Cambodians, Indians, non-Thai hill tribes,