think_too_mut Posted August 20, 2004 Report Share Posted August 20, 2004 Cutting the costs of IT August 13, 2004 MIS Asia The Thai government has lit a fire under the country?s IT industry. Thailand?s telecommunication costs, among the highest in Asia, will plummet. There are plans to allow competition in the telco provider market. Citizens now have access to cheap computers, and dial-up Internet access costs are falling in rural areas. An ambitious infocomm trade show, the Bangkok International ICT Expo 2004, is taking place in August. In the first of a new series that will analyse significant developments in Asian countries? IT landscapes, Kraisorn Pornsutee, deputy permanent secretary of Thailand?s new Information and Communications Technology (ICT) Ministry and a director of state-owned telco CAT Telecom, gave an interview to MIS Asia. Low-cost PCs and phone calls MIS Asia: Why was there a need to create the ICT Ministry? Kraisorn: Before 2002, telecom was handled by the Ministry of Transport. But transport is a big responsibility: There?s air, land and maritime transport. And IT used to be under the Ministry of Science and Technology. We have had a lot of activity under the new ministry. For example, [Thailand?s] low-cost PC program and lowering the cost of international telephone calls. The low-cost PC project was set up by the ICT Ministry last year. We approached local companies to [manufacture desktop] computers cost[ing] about US$250. In the first phase last year, about 100,000 units were sold. The very big orders helped bring down the price. By the end of this year, we expect one million PCs to have been sold under the scheme. In the rural areas, dial-up Internet access costs will also come down. We have to admit that there is not enough content in Thai on the Internet. We have a lot of room to grow. Last year, a [iDD phone] call from Bangkok to the US cost 22 baht (US$0.54) [per minute]. Since January this year, working with the [state-owned] telecommunications agencies TOT Corporation and CAT Telecom, we have brought the price down to only US$0.20. CAT Telecom will lose revenue [initially], of course. But in the long run, [customers] will talk more, so revenue will increase. Backing open source MIS ASIA: There seems to be strong Linux and open-source support from the Thai government. Why is this? Kraisorn: The government is trying to encourage the open-source community in Thailand. We actively support the development of Linux and will also encourage the private sector to do it. But [it won?t be easy]. People are very used to Microsoft Windows. When we applied to create the low-cost PC program, we used Linux at first because Microsoft Windows cost too much. But later Microsoft reduced the price [of Thai-language versions of Windows XP Home and Office Standard Edition to US$40]. The ICT Ministry helped to do that. MIS ASIA: What?s the timetable for telecom liberalisation in Thailand? Kraisorn: In a football match, there must be a referee. But the referee does not exist yet for telecoms [in Thailand]. We will have the help of the new National Telecommunications Committee (NTC) [as an independent and impartial regulatory body]. But the formation off the NTC is very complicated. The Senate has to select seven names, and we have to check that there are no direct links between the senators and the industry. We hope that [in] the second session of the Parliament this year, we can select the seven names to form the committee. But we will still need about six months to set up the rules and regulations for competition, and for issuing the licences and conditions. So the first licences [for IDD, VoIP (voice over Internet protocol) and other services] may be [issued] in the middle of [next] year. Catching up with Singapore MIS ASIA: What?s the level of software piracy in Thailand like these days? Kraisorn: We?re trying to prevent software piracy, but it?s not easy in any country. Piracy is happening all over Asia, as you know. MIS ASIA: Why is Thailand holding a large infocomm show in August? Aren?t there already many shows like that around the region? Kraisorn: I don?t think the trade show scene is saturated. I went to CeBIT Asia in Shanghai in April, and I did not think it was a success because the number of visitors was small. It was not a [truly] international show because when I asked for information in English, they did not have it. The Bangkok [international ICT Expo 2004] show will be a platform for people who want to target the Indochina market. The first three days will be limited to trade visitors, and Saturday and Sunday will be open to the public. We expect that, during this five-day exhibition, 100,000 visitors will come. And we expect about 20,000 [visitors] from overseas. This is the first show of its kind in Thailand. In the past we had separate expos for IT and communications. This year, we want to attract both trade [visitors] and [the] public. But they will not be mixed up. Most of the exhibition booths are [only] for trade visitors. We now have more than 450 exhibitors from 18 countries signed up. There will be a total floor space of 30,000 square metres in 2004. But the Bangkok show next year, which we already promoting, will be 45,000 square metres. CommunicAsia [a big annual ICT show held in Singapore] is 60,000 square metres. We are the baby, they are the teenagers! But we want the Bangkok ICT show to be a regional show, same as CommunicAsia. Right now, we admit that Singapore is the ICT hub of ASEAN. But there cannot be just one ICT hub [in the region]. Other countries also want to promote themselves. We hope to catch up with Singapore in five years [in terms of] penetration of broadband Internet users and mobile[-phone] subscribers. Reducing communication costs MIS ASIA: Is Thailand doing anything to reduce the business costs of voice and data network access? Kraisorn: Our prime minister [Thaksin Shinawatra] has said our infrastructure is not made of copper but of gold, because access is so expensive! The tariff for broadband [access], of one megabit per second, should be 1,000 baht (US$24.50) [per month] for unlimited access. This will be a very attractive price, one-tenth of what [users] are paying now. The new price will take effect at the end of the year. It will reduce the cost of doing business in Thailand. Domestic long-distance [phone] rates will also come down. MIS ASIA: Can Thailand compete as an outsourcing centre? Kraisorn: That is a good question. We have done a study on business process outsourcing. There are many [important] factors [to consider]. But we think that a BPO industry is possible if we [have cooperation] between the [labour and revenue] ministries and with [outsourcing] companies like IBM. One weak point for Thailand is the language. In the Philippines, you can hire an English-speaking professional at low cost. But to hire a Thai who can speak English, the cost is high. Promoting software SMEs MIS ASIA: Thailand?s software industry is seen to be among the most vibrant in ASEAN. Kraisorn: We have talented young people who can do things like animation. But there should be more support from the government for SMEs. We have set up a software industry promotion agency to support them. Thailand can work towards becoming a centre for animation, games and multimedia. We aim to generate content, but [first] we have to study countries like Korea. MIS Asia: How will Singapore, Malaysia and Thailand work together, since all three of them want to be ICT hubs? Will there be competition or cooperation? Kraisorn: We will cooperate. I have spoken with Singaporean ministers [who] know about the Bangkok International ICT Expo. They see the event as a great opportunity for Thailand, and they are ready to help us. There is a great spirit of support. Thailand ICT facts and figures With an area of 514,000 sq km, Thailand is roughly the size of France Population: 62.8 million Government IT budget, 2003: 4,180.17 million baht International Internet bandwidth, 2003: 1,438 Mbps Fixed lines per 100 inhabitants: 12.9 Estimated demand for IT manpower in 2006: 156.6 per 1,000 persons Internet users as as percentage of population: 10.4 percent Mobile phone users as percentage of population: 30.6 per cent Source:?Thailand ICT Indicators: Moving towards the information society? published by National Electronics and Computer Technology Center, National Science and Technology Development Agency, Ministry of Science and Technology, Thailand, October 2003. Link to comment Share on other sites More sharing options...
Guest Posted August 20, 2004 Report Share Posted August 20, 2004 The tariff for broadband, of one megabit per second, should be 1000 baht per month for unlimited access...one-tenth of what users are paying now. The new price will take effect at the end of the year. I see this article is from October '03 which explains this. Prices have come down tremendously over the last year, but cheap adsl still seems either limited use, unstable, or low speed. Link to comment Share on other sites More sharing options...
khunsanuk Posted August 20, 2004 Report Share Posted August 20, 2004 Hi, "but cheap adsl still seems either limited use, unstable, or low speed. " Disagree. I am quite happy with the offer from True. No problems connecting and get quite decent speeds (have seen as high as 900+Kbps). Sanuk! Link to comment Share on other sites More sharing options...
Guest Posted August 20, 2004 Report Share Posted August 20, 2004 That's encouraging. Other user experiences led me to believe they are still ironing out some serious issues. Do you for instance experience any slow downs during peak hours? I am seriously considering switching to true as they seem to give the best bang for the buck right now. Link to comment Share on other sites More sharing options...
khunsanuk Posted August 20, 2004 Report Share Posted August 20, 2004 Hi, "Do you for instance experience any slow downs during peak hours?" Dunno. I do most of my heavy downloading at night. Sanuk! Link to comment Share on other sites More sharing options...
think_too_mut Posted August 20, 2004 Author Report Share Posted August 20, 2004 Escape Rabbit said:That's encouraging. Other user experiences led me to believe they are still ironing out some serious issues. Do you for instance experience any slow downs during peak hours? I am seriously considering switching to true as they seem to give the best bang for the buck right now. Maybe...until they get more subscribers. Link to comment Share on other sites More sharing options...
BelgianBoy Posted August 20, 2004 Report Share Posted August 20, 2004 khunsanuk said:Hi, "Do you for instance experience any slow downs during peak hours?" Dunno. I do most of my heavy downloading at night. Sanuk! KS, Are you not limited to 5 - 10 - 15 giga per month ? BB 15 giga customer Link to comment Share on other sites More sharing options...
khunsanuk Posted August 21, 2004 Report Share Posted August 21, 2004 Hi, "Are you not limited to 5 - 10 - 15 giga per month ?" Not that I know of, and I have been downloading a LOT. Sanuk! Link to comment Share on other sites More sharing options...
BelgianBoy Posted August 21, 2004 Report Share Posted August 21, 2004 KS, Here its different, cheapest ADSL is including 5 gi free, I have ADSL for 2 computers, gives me 10 gi, and in free promotion I got 5 gi free. Then again, I can buy extra per month, but no need. What do you mean by a 'LOT' ? software, games ? BB Link to comment Share on other sites More sharing options...
think_too_mut Posted August 22, 2004 Author Report Share Posted August 22, 2004 BelgianBoy said:KS, Here its different, cheapest ADSL is including 5 gi free, I have ADSL for 2 computers, gives me 10 gi, and in free promotion I got 5 gi free. Then again, I can buy extra per month, but no need. What do you mean by a 'LOT' ? software, games ? BB Not related to KS or BB, but watching movies (of any kind) over the net would be a 2-4 GB per month. Nothing downloaded, just watched. Link to comment Share on other sites More sharing options...
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