Internet Diffusion

 

 

Broadband Providers Thailand ISPs Bandwidth Overload

 

 

 

 

Introduction

After years of inactivity in the area of information technology development, Thailand is finally making this sector a priority, especially as the global competition heats up and other Southeast Asian countries begin to race ahead. This section provides some details about the general IT infrastructure that exists now. 

 

 

Broadband Providers     back to top

According to Warburg Dillon Read, a research house, 15 % of all Internet connections are expected to be broadband-based as soon as next year. This year, 10% of the connections are broadband. 1

In preparation for the deregulation of the telecommunications industry, the Telephone Organization of Thailand is allowing more data communication providers into the market to meet the growing demand for Internet Service throughout the country. The six major broadband service providers include the following companies:

  1. Winstar International

  2. Shin Corps' Advanced Data Network Communications

  3. United Communication Industry's United Broadband Technology

  4. Lenso Datacom

  5. Samart Broadband Services

  6. Synergy Co. Ltd (in the process of data-com leasing deal with TOT)

Winstar International and Synergy Co. Ltd. are both new broadband service providers in the Thai market.  These companies, like the other four, have signed a contract with TOT for a license to provide service on TOT's data-com network for the next fifteen years. Winstar intends on building up its own network, in addition to the state agency's network.2

 

 

Thailand ISPs   back to top 

Information services market which cover processing services, network services, system integration, customization, consulting, training and maintenance is expected to grow by 7% from $230 million in 1999 to $247 million. The major revenue, especially in the PC market, has been generated by training.3

The Telephone Organization of Thailand (TOT) has begun to lease its Internet network to new and existing Internet Service Providers throughout the country. Currently, most Internet subscribers who live in the provinces outside of Bangkok have to dial long distance to reach an ISP in the city.  The TOT leases the Internet-based network from Hatari, an agent of Cisco Systems, for 3 Million Baht. This network will support the TOT's Internet leasing service as well as its Internet-Based phone service, known as the Y-Tel 1234. For more information about these phone services, please go to the Telecommunications Infrastructure page.

In order to lease from TOT, the ISP must fulfill specific criteria, which will eventually be monitored by the National Telecommunications Company once it is finally established. This criteria includes a mandatory contract of 10 years, with an upfront entry fee of 1 Million Baht. The leasing fee will then depend on the amount of data that is transmitted via the network through that particular ISP. Other requirements will be for the ISP for have over 15 Million Baht in registered capital and at least 60% of the company must be owned by Thai investors.

The TOT also intends to lease a fibre-optic link from Malaysia-based Time Telekom and a satellite link from Hong Kong-based Hutchison Corp for its Internet network users.

The biggest ISP provider in Thailand is Internet Thailand and it does not intend to lease space on the TOT network.4

 

 

Bandwidth Overload     back to top

The growing popularity of the World-wide Web in Thailand is a major reason for the growing bandwidth demand by users of the Internet. Unfortunately, in Thailand, the growth of bandwidth demand is growing more than the actual growth of the available bandwidth.3  Between the months of July 1997 and June 1998, the nation's leading Academic  Network, ThaiSARN, grew by more than 100%.  In the meantime, the existing E1 (2Mbps) international bandwidth was not expanded due to the severe budget cut and the lack of ThaiSARN-III funding from the government. In order to accommodate for the high growth, a cache/proxy technology was employed that lessened the congestion on the international line.5

To access popular information, the basic Internet client-server model (where clients connect directly to servers) can be a waste of resources. A 1993 study of FTP traffic on the NSFNET backbone concluded that several well-placed caches could reduce FTP traffic by 44%. 

The Network Technology Laboratory (NTL) initiated a hierarchical cache project based on two large cache servers to serve all ThaiSARN downstream sites since 1997. These cache servers have been tested with a few major downstream sites for their usability and reliability. NTL's cache servers are connected to the NLANR (National Laboratory for Applied Network Research) and become part of the global testbed for information provisioning.6

 

Kogod School of Business           American University        Other Country Reports

Sources:

1 Monkolporn, Usanee,"Winstar to Offer Fast Data Communication," The Nation, The Nation Publishing Group, 11/2/2000 LEXIS-NEXIS ® Academic Universe.

2 Ibid

3  Monkolporn, Usanee,"TOT to Lease Network to Other ISPs," The Nation, The Nation Publishing Group, 10/9/2000, LEXIS-NEXIS ®Academic Universe. 

4  Ibid

5 "Thailand Starting to Move on Information Technology," Asia-Point Network

6  Ibid