Expected Regulation for Expected Regulation for the new Telecom Ecosystem the new Telecom Ecosystem

By Pairoj WaiwanijchakijVice President – Digital Product Management

Thursday 25th September 2014

Recrafting Post-Modern Thai Telecommunication Industry: Reliefs & Reforms

10X

growth in mobile

data traffic between

2013 and 2019

Source: Ericsson (November 2013)

3X

growth in Thailand

Internet BW between

2012 and 2013

Source: nectec.or.th

Thailand Internet Monthly Bandwidth Statistic (Mbps) 2000-2014

Monthly BW in 2012-2014

BW in Month at end of year

Source: รายงานผลการสำารวจพฤติ�กรรม ผ��ใช้�อิ�นเทอิร�เน�ติในประเทศไทย ป 2556 (www.etda.or.th)

Thai Consumer – A big jump Mobility

Source: หน"งสำ#อิพ�มพ�กร$งเทพธุ$รก�จ ป 2556

Source: Out Mobile Planet: Thailand May 2013 Understanding the Mobile Consumer (http://think.withgoogle.com/mobileplanet/en/downloads/)

Thailand’s Mobile Consumer

65% 65% have used their smartphones every day in the past 7 days

56% 56% don’t’ leave home without their smartphone device

35% 35% would rather give up TV than their smartphone

73%73% search on their smartphone everyday

82%82% visit social networks once a day

53%53% use video at least once a day

96%96% watch video

??

Information on 2013

Source: Out Mobile Planet: Thailand May 2013 (http://think.withgoogle.com/mobileplanet/en/downloads/)

Smartphones Allow Users to search for products … Anytime, Anywhere

Smartphones Are Used While … Multi-tasking with Other Media

But, demand and supply is not matched

High and Fast Growth on Wireless Consumer’s Demand

Lagging on radio spectrum resource and

Solution to support New Telecom Ecosystem

Spectrum SharingSpectrum Sharing

Infrastructure SharingInfrastructure Sharing

Additional SpectrumAdditional Spectrum

MVNOMVNO

I. Additional SpectrumI. Additional SpectrumA Fundamental approachA Fundamental approach

– Access Spectrum (for 2G, 3G, 4G and beyond) can be considered as shortage for today or very near future. It leads to poor service quality to subscriber. We need regulator to rush on spectrum auction ASAP.

– Backhaul Spectrum (e.g. E-Band) is also important to built the infrastructure supporting the expansion of Access network.

2015

1800 MHz (lot 1 – 25 MHz)

900 MHz

E-Band

2015

1800 MHz (lot 1 – 25 MHz)

900 MHz

E-Band

2018

1800 MHz (Lot 2 – 50 MHz)

2018

1800 MHz (Lot 2 – 50 MHz)

2020+

700 MHz ??2600 MHz ??

Others…

2020+

700 MHz ??2600 MHz ??

Others…

2015 2018 2020+

II. Spectrum SharingII. Spectrum SharingMake it more efficientMake it more efficient

Technology and product in the market already aware and have enough capability to support the spectrum sharing operation. It makes use of limit resource like spectrum more efficient.

Some example of countries applied spectrum sharing : Spain, Canada, Poland, Australia, Sweden

III. Infrastructure SharingIII. Infrastructure SharingSupport fast roll-out and country cost savingSupport fast roll-out and country cost saving

Not only passive sharing, but also active sharing (i.e. Radio Base Station, Network Component, Transmission ) can help saving the vase of double or even triple investment and resources.

Fast wireless network penetration to all citizen and saving overall National’s expenditure.

IV. MVNOIV. MVNO

Today NBTC already set up the rule for retail service so call “Thin MVNO”

However for more opportunity to new comer, the more complicated form of MVNO may need to be supported by regulator

Last but not least Last but not least Competitions bring Benefit ConsumersCompetitions bring Benefit Consumers– It is proven from all market in the

world, competition between mobile network operators as well as with the OTT increasingly generate benefit to consumers

– Controlling price can be one solution to be regulated to support introducing on new comer. However, too tight control will limit new service innovations

– This is important to find a balance between supreme market competition and too tight price regulation.

Thank youThank you