NTC THAILAND

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Future Telecommunications in Thailand

Col. Dr.Natee SukonratNTC acting NBTCCommissioner

June 14, 2011

NBTC THAILAND

NTC THAILAND

Agenda

Telecoms sector role in Thai economy

Character of Thai telecoms sector

Convergent regulator

Telecoms Master Plan

3G/4G Updated in Thailand

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NTC THAILAND

Telecoms sector plays vital role in Thais economic

Telecoms service is necessary services

Consumption in Telecoms contributes 0.12% of GDPs

In(GDP) = 12.65 + 0.12ln(Private Telecoms expenditure)

4.16 % of Total expenditure spend in telecoms sector

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NTC THAILAND

Thais consume Telecoms service more

1.89

4.16

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

Growth rate 1993-2009- Private consumption expenditure: 63.21%- Post&Telecom expenditure: 268.10%

Average growth per year- Private consumption expenditure: 3.22%- Post&Telecom expenditure: 9.02%

Source: NESDB

Ratio of Telecommunications Expenditure to Total Annual Private Consumption Expenditure

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NTC THAILAND

Opportunity, Market and Growing Telecoms Sector

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NTC THAILAND

Mandatory Infrastructure couple with 93% coverage

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NTC THAILAND

Fixed line market status

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0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

2003 2004 2005 2006 2007 2008 2009 2010

10.35%

38.09%

Population Penetration Household Penetration

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Mobile Penetration has Increased Markedly

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NBTC THAILAND

0%

20%

40%

60%

80%

100%

120%1

Q0

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96.15%

10.90%

Pre-Paid Post-Paid

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Broadband Market also Expand Rapidly

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-Broadband subscriber @ 2010: 2.8 million subscribers - Population penetration: 4.22%- Household penetration: 15.54%

-Growth rate year on year: 23%

NBTC THAILAND

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500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

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2,825,188

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Huge opportunity in Broadband Market

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- Broadband/ Fixed line: 41.33 %- 58.67% of Fixed line waiting for new investment- 4 million number is a room for xDSLinvestment- Local loop unbundling have been announce since November 2010

NBTC THAILAND

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1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

2003 2004 2005 2006 2007 2008 2009 2010

2,825,188

6,835,146

Broadband Subscribers Fixed Subscribers

0.18%2.53%

8.14%13.00%

18.02%

24.97%

32.58%

41.33%

0%

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15%

20%

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30%

35%

40%

45%

2003 2004 2005 2006 2007 2008 2009 2010

Broadband /Fixed line

NTC THAILAND

Well facilities for the future

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0

100,000

200,000

300,000

400,000

500,000

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800,000

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Domestic Bandwidth International Bandwidth

Rapid Growth in one quarter during 3Q09 – 4Q09- NIX: 127%- IIG: 50%

Current bandwidth- NIX: 721 Gbps- IIG: 158 Gbps

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NTC THAILAND

10.86%

15.25%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10

Non-voice: the new revenue stream

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Voice revenue

1,012 m$

Non-voice revenue152 m$

- Non-voice revenue grew 22% in one year (2009 to 2010)- According to our research, non-voice service trend to be necessary service

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Non-voice revenue 224 m$

Voice revenue

1,009 m$

NTC THAILAND

Thais ready to be information society

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- 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000

19911992199319941995199619971998199920002001200220032004200520062007200820092010

13,416,000 16,100,000

18,300,000 22,000,000

- Almost 35% of Thais is able to access to internet - During 2000-2010, average internet user growth per year: 30%- Recent year internet user growth: 20%

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NTC THAILAND

Thais ready to be information society

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Recently, Thais Facebook account is almost 9.4 million accounts (Ref. www.socialbakers.com)

Mobile internet user is almost 12 million users in recent year

Skyrocket growth in smart phones (230% in last year)

Thais Tweeter account is 450,000 users, 1 millions messages as tweeted in Thai language daily (Bangkok post, 5 May 2011)

Mobile non-voice revenue is very high growth and trend to be necessary service in near future

Broadband is one of Thai Government agenda

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NTC THAILAND

Toward Convergent Regulator

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NTC THAILAND

NBC

Toward convergent regulatorNBTC THAILAND

NTC

Joint

co

mmitt

ee

Telecoms Regulator

Broadcast Regulator

SpectrumManagement

NBTC(Convergent Regulator)

- NBC has not been establish since 2000- NTC has been establish since 2004- No new spectrum assignment for 10 years- Broadcasting sector has not had independent regulator

- All in one organization- Spectrum Management- Telecoms Regulator- Broadcasting Regulator

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Toward convergent regulator

NBTC Act (2010) has enforced since December 2010

There will be 11 commissioners

1 Chairman

5 Telecoms sector commissioners

5 Broadcasting sector commissioners

The commissioners selection process will start on March 2011

New commissioners expected to be selected by June 2011

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NTC THAILAND

Toward convergent regulatorNBTC THAILAND

ChairmanNBTC

Vice ChairmanTelecoms

Telecoms commissioner

Telecoms commissioner

Telecoms commissioner

Telecoms commissioner

Vice ChairmanBroadcasting

Broadcasting commissioner

Broadcasting commissioner

Broadcasting commissioner

Broadcasting commissioner

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Master plan

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NBTC THAILAND

NTC THAILAND

Master plan

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Spectrum Master plan

Telecoms Master plan Broadcasting Master plan

Foster fair competition

Reduce barrier to entry

Public interest

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NTC THAILAND

Spectrum Master Plan

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Table of Frequency Allocation

Refarming

Digital Switchover (Digital Dividend)

Frequency Coordination & Cooperation

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NTC THAILAND

Telecoms Master Plan

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Telecoms Master Plan is in drafting process

Public participation is mandated for developing master plan

The draft master plan will be deliver to new NBTC for approving.

The draft Telecommunication Master Plan have four goals

Expansion of Broadband Infrastructure

Expansion of Basic telecommunication service

Providing affordable price in Telecommunication service

Strengthen consumer protection

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NTC THAILAND

3G/4G Updated in Thailand

3G/4G Spectrum Auction will be auctioned after the completion of NBTC Commissioner selection and approval of Spectrum Master Plan/Telecoms Master Plan.

Approved in-band migration for 800MHz, 900MHz and 1800MHz.

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Q & A

Welcome to THAILAND

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