“National Broadcasting and Telecommunications Commission”

Mr.Notachard ChintakanondSenior Expert for Policy and Planning

, Acting Executive Director, International Affairs Bureau

1

Introducti on of NBTC

Telecom Current status

Broadcasti ng Current Status

Radio Communicati ons Status

Internati onal relati ons

Regulatory Updated

Agenda

2

Introduction of NBTC

3

Thailand is a developing country and technology taker

• Technology becomes more complex but law & regulation cannot catch up with

NBTC is newly established as the independent regulator

• ICT Ministry is national administrator for ITU satellite filings• State Enterprises, CAT & TOT, are under ICT Ministry

NBTC has full authority to allocate spectrum but law mandates “auction” only

• Public has misperception on “spectrum auction”

Spectrums available but cannot be allocated to catch the demand

• Some rural areas still cannot reach basic telecom services

• Market liberalization

• Universal Service Obligation

• Transition period

Free and Fair Competition

4

Background at a glance: Thailand context

Thailand’s rank in world ICT Development Index or IDI, from 91st place in year 2012 to 81st place in 2013, out of 166 countries from all over the world.

The internet usage of Thailand in world’s ranking also grown from 105th place in 2012, to 71st place in 2013.

5

Source : ITU

ICT Development Index (IDI)

Thailand

5

Telecom and Broadcasting in History

1867 2004 - 2010 2012 - Present

Post and Telegraph Department, Ministry of Transport

2010 - 2011

National Telecommunication Commission (NTC)

NTC Acting National Broadcasting and

Telecommunications Commission

National Broadcasting and Telecommunications Commission (NBTC)

NTC6

NBTC

NTC(Telecom)NBC(Broadcasting)

• Constitution establishes the NBTC and divided into two committee; National Telecommunication Commission (NTC) and National Broadcastings Commission(NBC)

Single converged regulator

• Spectrum is national scare resource• Allocated with objective to maximize public benefit as a whole, whether

telecoms or broadcasting sector

Under same principle of spectrum allocation

Constitution (sec 305) separates 2 committees based on skill and expertise

Converged regulator

7

Chairman

Vice Chairman (NTC) Vice Chairman (NBC)

NBTC Committ ee (11 commissioners)

Telecom Commissioner Broadcasti ng Commissioner

8

Offi ce of the NBTC

9

SECRETARY GENERAL (CEO)

The Act on Organization to Assign Radio Frequency and to Regulate the Broadcasting and Telecommunications Services B.E. 2553 (2010)

Role and Responsibilities

Formulate a Frequency Management Master Plan

Table of Frequency Allocations

Broadcasting Master Plan

Telecommunications Master Plan

Frequency Plan

Telecommunications Numbering Plan

License and regulate

Broadcasting License

Telecommunication license

Radiocommunications License

Promote market competition

Consumer Protection

Coordinate matters relating to frequency

management

National Level

International level

10

Telecom

Sector

Broadcasti n

g Secto

r Guarantee access to communications - Rate regulation - QoS regulation - USO Competition in the market-prevent abusive and anti-competitive behaviors by dominant operator Consumer protection

Content regulation - Public interest goal - Freedom of speech - Pluralism diversity of content - Protection of minor - Advertising Societal value through a protection of audiences against harmful content

Convergent Regulations

Roles and Responsibiliti es

11

Frequency Allocation and Organization Act

Telecom Business Act

Broadcasting Business Act

Radiocommunication Act

Roles and Responsibiliti es

12

Telecom current status

13

19922004

2010

Private sector allow to implement under the contract “Build-transfer-operate”

Constitution prescribes to establish organization who regulate telecom industry

• Establishment of Ministry of Information and Communication Technology (MICT)

• TOT and CAT operates Telecom business under concession regime Establishment

of NTC

2002

2005

1997

• The Act on Organization to Assign Radio Frequency and to Regulate the Broadcasting and Telecommunications Services B.E. 2553 (2010) has been effective• 1st 3G auction

(unsuccessful)

1st Telecommunications

Master Plan

2011

Establishment of NBTC

2012

2nd 3G auction

(Success)

Development of Telecommunicati ons Regulati on

Concession Regime License Regime

14

License Regime

Type of License :Type 1

• Service base

Type 2

• Facility base

Type 3

• Infrastructure base

15

Communication Service

Market Consumer perspective

16

Subscribers : 91.0 Mn.Penetration rate : 136.27 % Prepaid: 119.36 % Postpaid: 16.92 %Operators : 7 AIS, AWN, DTAC, TMV , TMV-H, CAT, TOT

Subscribers : 4.72 Mn.Household Penetration : 23.63 % Operators: 4 TRUE, TOT, 3BB, Others

Subscribers : 6.16 Mn.Household Penetration : 31.18 % BKK & Metro : 112.05 % Provincial : 16.81 % Operators : 3 TOT, TRUE, TT&T

Penetration Rate

Subscribers : 73.4 Mn.Penetration rate : 100 % Operators : 3 AWN, TriNet, Truemove H

17

TOT/AIS800/900 MHz CAT/DTAC

824 849 869 894

TOT/AIS

915 942.5 960897.5

CAT/DTAC

1800 MHzCAT/

Truemove

1722.6CAT/

Truemove

1817.6

CAT/DTAC

1747.9

CAT/DTAC

1842.9CAT/DPC

1760.5CAT/DPC

1855.5

CAT CAT

1880180517851710

2100 MHz DTAC Network

19351920Real

FutureAWN TOT

1950 1965 1980DTAC

Network

21252110Real

FutureAWN TOT

2140 2155 2170

2300 MHzTDD

(Future Release)

2300 2400

FDD(Future Release)

25702500

Guard

Ban

d

TDD(Future Release)

2575 2615 2620 2690

2600 MHz

TDD(Future Release)

2010 2025

Guard

Ban

dFDD

(Future Release)

Future release of 295 MHz

Current usage of 355 MHz

Total bandwidth of 650 MHz

+

Spectrum for Mobile

18

“Current date”

Timeline of Concession and License ‘s period

19

Auction held in October 2012 Reserve price at 4.5 billion baht per spectrum slot Total value 41,625 Million Bath (~ 925 Million EURO) 3 Licenses (2 x 15 MHz each) 1) Advanced Info Service’s subsidiary Advance Wireless Network (AWN) bids the highest price of 14.6 billion baht 2) Total Access Communication’ subsidiary DTAC Network/ DTAC TriNet (DTN) bids at 13.5 billion baht 3) True Corp’s subsidiary Real Future (RF) bids at 13.5 billion baht

Spectrum Auction for International Mobile Telecommunication in the frequency Band 2.1 MHz:

2100 MHz current usage by licenses

2100 MHz Aucti on

20

Regulatory Updated

There are 5 Mobile Operators. AIS and DTAC classified as “significant market power

(SMP)” in the market.

Mobile Service market share (updated 3th quarter 2014)

Maximum Call Rates (2G):

21

Maximum Call Rates

Maximum Call Rates (2G):

Call Rates since 2012 - 2014

22

Maximum Call Rates (3G):

Call Rates since 2012 - 2014

Maximum Call Rates

23

Mobile Number portability:

Number portability

24

Since 27 June

2014

50,000 registrati

on stations

7-11, Tesco Lotus,

Krungthai Bank and opertors counter service

1.2 Million

numbers registere

d

Ongoing 2015

(expected to

complete within July

2015)

Increasing Security

2 Shots Application Prepaid SIM Card registrati on

25

New Method of Call rates

Call Rates per second: The National Legislative Assembly and the Political

Reform Council considered call rates in mobile service, should rely on actual call rates PER SECONDS.

Currently, NBTC is in the process of discussions with service providers. (expected to endorse on March 2015)

26

•1800 MHz Spectrum Allocation in August 2014

•900 MHz Spectrum Allocation in November 2014

Spectrum Allocation

•NCPO postponed 1800 MHz and 900 MHz auction to 2015

NCPO postponed the

auctions

•Suggestion of NCPO to extend consumer protection period

Extension of 1800 MHz Interim Measures

• Suggestion of NCPO to amend the existing NBTC Organization Act 2010

• Section 45 mandates spectrum must be allocated by means of auction only

Amendment of the NBTC Act

2010

*NCPO: National Council of Peace and Order

4G Toward Future Auction

27

Radio Communications Status

28

Radio Communications Act 1955

License Type (9)

License to do

License to have

License to use

License to import

License to export

License for commercial

License for base station

License for radiocommuniation

License for international connection

29

Radiocommunicati on type of usage

Citizen band Amature Radio

Government and State Enterprise

BandBase Station

30

Broadcasting current status

31

Development of Broadcasting Roadmap

32

Digital TV License Auction : Auction held on December 2013.

Type of digital TV

12 General public Channels

7 High-definition Channels

7 News Channels

3 Children Channels

7 Variety Channels

12 TV public Channels

24 Commercial TV (Auction)

Free TV (Beauty Contest)

Reserve price

1,510 Million Baht

220 Million Baht

140 Million Baht

380 Million Baht

Total 48 Channels

Free TV (Beauty Contest)

Digital TV

33

Digital TV

Digital TV Auction Result :

34

Digital TV

Digital TV Auction Result : Children News Variety SD Variety HD

13 3 Family14 MCOT Family15 LOCA

16 TNN2417 THV (Thai TV)18 new tv19 Spring news20 Bright TV21 VOICE TV 22 Nation

23 Workpoint tv24 True 4U25 G2526 Now27 CH 828 3 SD29 Mono 29

30 MCOT HD31 One HD32 Thairath HD 33 3 HD34 Amarin TV HD35 CH 7 HD36 3G PPTV HD

35

Digital TV

Digital TV discount coupons : Start April 2014

Support terrestrial TV platform to digitalization

Free Coupons for settled box mailed out 7.1 million digital TV discount coupons to households in 45 provinces (included Bangkok and other provinces)

2.38 Million coupons already used (updated on 5th January 2015)

36

Digital Switchover(DSO) Communication

DTV Website: digital.nbtc.go.th 37

“Nong Doo dee”(DTV Mascot)

Digital Switchover(DSO) Communication

38

To encourage a transmission of terrestrial to digitalization. NBTC require 4 network operators to expand an infrastructure to expand terrestrial TV station.

Digital Switchover(DSO) Network Preparation

Network operator Terrestrial station updated

Thai PBS 25 Stations (ready to broadcasted)

Royal Thai Army 23 Stations (ready to broadcasted)

MCOT 16 Stations (ready to broadcasted) and 9 Station (expected to broadcast on

February 2015)

Thai Government Public Relation Department (PRD) Remained on process

39

Cable and satellite

On-demand Service

True Visions (UBC) is the biggest satellite TV provider; broadcasting in English available

Content : movies, series, documentaries, music, entertainment, including National Geographic, Star Movies, HBO, BBC World, News 24, Star Sports, TVB, Animal Planet, CNN, Bloomberg, Cartoon Network and many more.

40

International relations

41

International Relati ons

International Affairs Bureau

Bilateral & Multilateral

ASEAN

APEC

ATRC

MOU

International Organization

ITU-D

APT

WCIT

WTDC

Satellite Coordination

ITU-R

WRC

WTO & RTAs

GATs

FTAs

RTAs

International Affairs Bureau’s Structure :

42

International Relati ons

Membership

World Radio Communication (WRC) International Telecom Union (ITU) Association of Southeast Asian Nations (ASEAN) ASEAN Pacific Telecommunication (APT) APEC Telecommunications and Information Working

Group (APEC TEL)

43

International Relati ons

MOU(Mr. Takorn Tantasit, Secretary General of NBTC)

Memorandum of understanding (MoU): To sharing information and exchange experience on regulatory

framework i.e. study visit, human resource exchange and etc.

Signed on 20 November 2013

44

Roadmap in 2015

45

Spectrum Auction for 1800MHz and 900MHz  to implement 4G LTE • To encourage “Digital Economy Era” concept of Thai Government

Number Auction• 300,000 Numbers (estimated value 4,000 Million THB ); revenue return

to treasury

Register pre-paid SIM Card with 2 shots application

• Promote a registration of pre-paid SIM Card for people security

Single sign on: registration before use public Wi-Fi • Enforce information security and promote people awareness on cyber

security

Digital TV Discount Coupon

• Aim to mail out to 14.1 million household within 2015

TV license for General public channel (3 channels) • Parliament channel; To strengthen a good relationship between

government and people• State security channel• Education channel; To encourage knowledge science and

technology and ecosystem to people.

2015 Plan

46

Thank younotachard@gmail.com