Overview

The Thai government aims to become an ASEAN digital infrastructure hub and transform the country into a digital economy.  According to the Office of the National Broadcasting and Telecommunications Commission (NBTC), adopting 5G could contribute $9.3 billion to the economy or ten percent of GDP in 2035.  The Thai government has an ambitious aim for this sector to contribute 25 percent of national GDP by 2027 through its economic and social transformation scheme known as “Thailand Industry 4.0”.  The scheme aims to encourage digital creativity and innovation, development of new technology, and promote a digitally driven economy.

At the end of 2021, Charoen Pokphand (CP) Group and Telenor Group announced an agreement to explore the creation of a new telecom-tech company comprised of True Corporation (TRUE) and Total Access Communication (DTAC).  The new company intends to raise venture capital funding together with partners of $100-200 million to invest in startups and other new technologies in Thailand.

Apart from the merger between two major telecommunication companies, Thailand’s telecom market value is expected to remain largely unchanged in 2022 compared to 2021.  In 2022, the economy and spending power continue to recover gradually due to the reopening of the country for foreign arrivals, and increased tourism and consumption patterns.  The impacts of the COVID-19 pandemic resulted in widespread digital adoption in key economic sectors including retailing, manufacturing, and transport and distribution.  This digital adoption will increase demand for connecting to the internet of things (IoT) through mobile networks.  Similarly, government policies including the promotion of the digital economy, the development of smart cities, and the allocation of 5G frequencies will ensure that mobile telecoms infrastructure extends across Thailand, helping to stimulate stronger demand from consumers in new parts of the country.  As such, the investment in telecom infrastructure and equipment is expected to rebound to the same level before the pandemic in the first half of 2023.

Thailand’s Telecommunication Sector Equipment (Millions USD)

Total market size = (total local production + imports) – exports)
Source: NBTC

Leading Sub-Sectors

• Internet of Things (IoT)
• Mobile Security and Solutions
• Cloud Computing
• Telecommunication Infrastructure
• Network Management

Opportunities

Thailand endeavors to become ASEAN’s digital infrastructure hub as it implements the government’s “Thailand 4.0” policy.  As a result, the telecommunications business is a significant driver for national projects.  In general, this upgrade to 5G has the potential to enable Industry 4.0 and support new services that will, in turn, stimulate economic growth and job creation in Thailand.

Telecommunication products and technologies from the United States are well known, and the United States is also known for its high adoption rate of new advanced technologies, IoT, wearable technology, and autonomous/connected cars.  The reliable and fast connectivity required for these technologies is addressed by 5G and high growth opportunities can be expected.

The major players in the 5G infrastructure market are Huawei (China), Ericsson (Sweden), Samsung (South Korea), Nokia Networks (Finland), ZTE (China), NEC (Japan), CISCO (US), CommScope (US), Comba Telecom Systems (Hong Kong), Alpha Networks (Taiwan), Siklu Communication (Israel), and Mavenir (US).