4G auctions set to generate B1.3tn
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A woman walks past telecom and cable lines along Phahon Yothin road. The 4G auction is expected to spur huge investment in telecom lines. PATTARAPONG CHATPATTARASILL
The imminent fourth generation (4G) spectrum auctions could stimulate direct and indirect investment valued at 1.3 trillion baht over the next five years.
The development will also transform Thailand into an internet-empowered economy and add impetus to the country becoming an Asean digital infrastructure hub by 2020, said Takorn Tantasith, secretary-general of the National Broadcasting and Telecommunications Commission (NBTC).
The private sector, meanwhile, believes that having faster high-speed mobile network technology will promote the country’s e-commerce.
The NBTC expects to receive at least 73 billion baht from the 4G spectrum auctions of four licences in November. The revenue will pass directly to state coffers, Mr Takorn said at a seminar entitled ‘4G: the turning point of the country’.
The winning bidders of the 4G auctions must roll out networks worth a combined 160 billion baht in 2016.
An additional 260 billion baht will come from telecom-related businesses and employment in 2017, plus another 300 billion baht in 2018.
Based on an internal estimate, Mr Takorn said all direct and indirect investment stemming from the 4G auctions would reach 1.3 trillion bay by 2020, in line with a study by the economics faculty of Chiang Mai University.
“Thailand can no longer afford to lose this opportunity for the sake of our country and our people,” he said.
There are 104 million mobile subscribers in Thailand, only 4 million of whom are 2G users.
Worawoot Aunjai, chief executive of Central Online Plc, said having a 4G infrastructure would directly benefit the local e-commerce and online trading industry. It will also encourage small and medium-sized enterprises to grab a bigger slice of the e-commerce market.
“Thailand can no longer afford to lose this opportunity for the sake of our country and our people,”
“Companies without technology will find it nearly impossible to flourish in the current business environment,” he said.
Mr Worawoot said development of the 4G infrastructure was essential to accommodate the rapidly changing needs and growth of businesses.
He said Thailand’s retail trade via online transactions accounted for only 1% of total retail trading value, compared with 5.8% of the average global retail market and 12% in China.
Global online trading is expected to account for some 20% of total retail trade by 2020.
Mr Worawoot said online trading was expected to reach 8% of the total retail trade in Thailand by 2020.
“The growth of online trading will be in line with the quality of wireless connection and affordable mobile devices,” he said, adding that 4G service will play a crucial role in driving the local e-commerce industry.
Mr Worawoot said Central Group’s annual retail sales were expected to reach 260 billion baht this year, half of which will be conducted via mobile devices.
Ariya Banomyong, managing director of Line Thailand, said the quality of wireless connections and telecom infrastructure could attract foreign investment from global tech companies such as Google, Facebook, Amazon and Apple.
“This will promote Thailand as a regional digital infrastructure hub,” he added.
Vichai Bencharongkul, honorary president of the Telecommunications Association of Thailand, said developing an internet-based economy would essentially need a high-speed telecom infrastructure, developing knowledge workers and building organisational confidence with digital practices.
4G service is expected to ensure wireless service continuity and provide business recovery experience, thanks to the greater speed of wireless data services, said Mr Vichai.
Questions & Answers
Q.What is the expected total investment generated by the 4G auctions over the next five years?
What is the expected total investment generated by the 4G auctions over the next five years?
The 4G spectrum auctions are expected to stimulate direct and indirect investment valued at 1.3 trillion baht over the next five years. This figure was estimated by the NBTC and supported by a Chiang Mai University study.
Q.How much revenue does the NBTC expect to receive from the 4G spectrum auctions?
How much revenue does the NBTC expect to receive from the 4G spectrum auctions?
The National Broadcasting and Telecommunications Commission (NBTC) expects to receive at least 73 billion baht from the 4G spectrum auctions. This revenue will pass directly into state coffers, according to Mr Takorn.
Q.How will a better 4G infrastructure potentially impact Thailand's e-commerce sector?
How will a better 4G infrastructure potentially impact Thailand's e-commerce sector?
The improved 4G infrastructure is expected to directly benefit the local e-commerce and online trading industry. It should also encourage small and medium-sized enterprises to expand their presence in the e-commerce market.
Q.What is Thailand's current online retail trade as a percentage of total retail trading value?
What is Thailand's current online retail trade as a percentage of total retail trading value?
Thailand's retail trade via online transactions currently accounts for only 1% of the total retail trading value. This is significantly lower than the global average of 5.8% and China's 12%.
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