Digital economy draws scepticism
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Digital economy draws scepticism

Internet access still too low, say experts

The government's digital economy policy has drawn scepticism from industry experts who doubt Thailand is ready for the hyper-connected world.

"As long as the country's internet penetration rate remains as low as 25% and telecommunications infrastructure is still not spreading nationwide, the digital economy is unlikely to get off the ground," said one industry veteran.

Another industry figure said: "While this government will not stay in power for long, developing the digital economy necessarily requires a long-term plan and a long time to implement it successfully. It'll be hard for this government to get this project off the ground."

ACM Thares Punsri, chairman of the National Broadcasting and Telecommunications Commission, agreed the ability to access the internet nationwide would be the critical factor for the digital economy.

Given poor public telecom facilities and internet tariff rates that are still not affordable for all people, it is too early to talk about full-scale implementation of the digital economy, he said.

"Personally, I support the state's digital economy and low-cost broadband internet mission, as it could boost the country's economic growth," ACM Thares said.

Thares: Infrastructure needs improving

He suggests the government place priority on accelerating development of telecom infrastructure and increase information and communications technology (ICT) literacy before defining its policy.

"If the state decides to move ahead with its digital economy plan, it needs to be absolutely clear about which agencies would take responsibility for tasks," ACM Thares said.

Despite the number of mobile subscribers in Thailand exceeding 100 million and mobile operators accelerating network expansion nationwide to serve skyrocketing mobile data traffic, fixed-based broadband, which provides greater reliability, tells the opposite story, he said.

However, Pawoot Pongvitayapanu, president of the Thai E-Commerce Association, views the digital initiative as a major effort to transform business practices and drive economic growth for an innovation-driven future.

"Advancing Thailand as a digital economy will require state agencies and private companies to invest in ICT systems to boost their competitiveness," he said.

Thailand's ICT industry was worth 1.16 trillion baht last year — 500 billion from telecommunications, 400 billion from e-commerce, 100 billion from broadcasting, 100 billion from IT, 50 billion from digital content and 10 billion from digital marketing.

"By 2020, the ICT industry is expected to contribute 18% of GDP," Mr Pawoot said.

Vichai Bencharongkul, chairman of the Telecommunications Association of Thailand, said the fibre-optic network covered 60% of the population, while wireless network coverage reached 90%.

"Sharing of telecom network infrastructure is truly needed to enhance the country's network operational efficiency and promote efficient investment," he said.

Amarit Charoenphan, co-founder of the Thailand Tech Startup Association, suggests the state increase the number of tech start-ups to promote the digital economy.

In the past nine months, at least US$40 million has been invested in such projects, he said.

Anuntachote Chaovanayotin, secretary of the Association of the Thai Software Industry, said the government should promote the use of ICT in established sectors such as food, tourism, health care, agriculture, logistics and automotive products.

The government recently announced a plan to build a national broadband infrastructure larger than that of all existing private operators combined.

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