Overview

Thailand aims to transform itself into a digital economy, and the government has a vision to maximize digital technologies in all areas of its society and economy. Therefore, growth in the information, communications, and technology (ICT) sector will be stimulated by the government’s plans to create a digital economy, which is officially named the 3rd ICT Master Plan, and the National Digital Economy Policy and Plan (2016-2020).  The government’s comprehensive ICT Policy Framework 2020 also involves a number of development strategies and goals, including universal broadband, a competent workforce, a robust ICT industry, digital government, and ICT to make the country more competitive, to improve society and the environment.

On February 16, 2020, the three major mobile operators and two state telecom agencies bid a combined $3.2 billion at an auction for the spectrum required to set up 5G infrastructure. Thailand’s top mobile operator, Advanced Info Service (AIS), emerged as the biggest winner with 23 licenses across all three spectrum bands in the auction. The country’s second and third-largest telecom operators, TRUE Corporation and Total Access Communication, won 17 and two licenses, respectively.  Regarding state-run agencies, CAT Telecom and TOT (which will merge as the National Telecom (NT) company) took part in a spectrum auction for the first time and won six licenses combined. The 5G auction in February was summarized in three spectrum categories as below.

• 700-megahertz (MHz) spectrum: CAT - 2 licenses and AIS - 1 license
• 2600 – MHz spectrum: AIS - 10 licenses and TRUE - 9 licenses
• 26 – GHz spectrum: AIS - 12 licenses, TRUE - 8 licenses, TOT - 4 licenses, and DTAC - 2 licenses

According to the Office of the National Broadcasting and Telecommunications Commission (NBTC), adopting 5G this year could contribute $5.7 billion to the economy or 1.02% of GDP, and the contribution could rise to $10.7 billion in 2021 and $15.3 billion in 2022. In addition, the upgrade to 5G has the potential to enable Industry 4.0 and support new services that will, in turn, drive economic growth and job creation for other industry sectors utilizing and leveraging Internet of Things (IoT) devices in areas like manufacturing, transport, healthcare, education, and agriculture.

The best prospects include cloud computing, telecommunications infrastructure, network management, security equipment and solutions, mobility, and the Internet of things (IoT).).

Total Market Size = (total local production + imports) - exports in millions of U.S. dollars.
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 these 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.

For example, the 5G roll-out will create rising demand for online services, IoT and innovation applications like smart vehicles and transport infrastructure, remote healthcare, and robotics as the country transforms itself into a digital society.

Web Resources

Ministry of Information and Communications Technology
Office of The National Broadcasting and Telecommunications Commission