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Govt to tax True & other ISP's to provide internet to poor areas without internet. Companies claim will slow internet growth & improvement.

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Economics
INFORMATION TECHNOLOGY

ISPs condemn licence fee

22/08/2012
Suchit Leesa-nguansuk

Major internet service providers are calling on the National Broadcasting and Telecommunications Commission to review its new licence fee model in order not to deter broadband industry growth.

The new revenue-sharing system, to take effect next year, will inevitably raise the financial burden on broadband service providers, which will ultimately have to pass it on to consumers.

The NBTC's licence fee for ISPs will change to 2% of total revenue from a fixed payment of 250,000 baht a year.

The regulator in May also imposed a universal service obligation fee, requiring ISPs to pay 3.75% of total revenue each year to support access to telecom services in remote, unprofitable areas where ISPs will not normally invest in infrastructure.

"The new measure may slow down the growth of the country's broadband penetration. It will also impede ISPs' ability to provide higher speeds," said Non Ingkutanon, True Corporation's general manager for wireline [wireless] broadband service.

True expects 12 billion baht in broadband revenue this year, but under the new payment structure the company may have to pay 240 million baht to the NBTC, 1,000 times more than under the existing model, said Mr Non.

Anan Kaewruamwong, chairman of the Thailand ISP Association, said the new payment formula will directly affect large ISPs such as True, TOT and Triple T Broadband.

Mr Non said True expects to gain half of all new broadband subscribers this year or 250,000 users.

The firm added 130,000 customers in the first half of this year, bringing its total to 1.47 million.

Mr Non said the local fixed-line broadband market looks strong this year, expecting 20% growth instead of the 10-15% of recent years.

As of June, 5% of the total population had broadband access.

Even with the advent of third-generation (3G) wireless broadband service, Mr Non said fixed broadband will continue to grow for at least the next five years, driven by increasing demand for video streaming.

"True has invested in technology to provide high-speed data service over cable. "This lets us provide 10-100 Mbps to users compared with an average 3G speed of 2-3 Mbps," said Mr Non.

He reckons Thailand's fixed broadband could eventually reach half of all households, up from the current 17.5% of 20 million households.

(Source: Bangkok Post, Economics, INFORMATION TECHNOLOGY, ISPs condemn licence fee, 22/08/2012, Suchit Leesa-nguansuk, link) 

 
Telecoms Industry Vocabulary

broadband - the most common high-speed data transmission used for high-speed Internet access, fast enough to support applications such as streaming video (See Wikipedia)

broadband industry
broadband subscribers - people who pay to get a fast broadband internet connection at their home or business

penetration - users as a percentage of potential users; the percentage of a market or potential customers that currently use the product
broadband penetration - the percentage of people who have high-speed broadband

ISP - Internet Service Provider, a company that provides you with an Internet connection and services (See Wikipedia)

licence - an official document from the government that gives someone permission to do or use something ใบอนุญาต
fee - an amount of money that you pay to be allowed to do something ค่าธรรมเนียม, ค่าตอบแทน, ค่าบริการ
licence fee

condemn - to say publicly that you think someone or something is bad or wrong ถูกประนาม การประนาม วิจารณ์อย่างแรง
ISPs condemn licence fee

deter - prevent or make more difficult ขัดขวาง, ยับยั้ง, ป้องกัน
deter growth - prevent growth
deter industry growth

review - look at some activity, policy or project closely to decide whether to continue it or not
model - a simple description of how some system works (in theory, may be more complicated in actual practice) 

licence fee model - a simple high level description of how the telecoms license fee system works
review its new licence fee model

Major internet service providers are calling on the National Broadcasting and Telecommunications Commission to review its new licence fee model in order not to deter broadband industry growth.

revenue - income from taxes or business activities รายได้
revenue-sharing system - the system in which the government gets a percentage of the money that telecoms companies make (revenue)

take effect - when a new law begins to be used
take effect next year

inevitably - will happen in the future for sure; cannot be prevented or avoided อย่างเลี่ยงไม่ได้

burden - a difficult thing you must do; a difficult responsibility that you have to deal with, carry a heavy thing or load ภาระ (See glossary)
financial burden - the responsibility for paying back borrowed money in the future 
raise the financial burden

ultimately - finally in the end, after a series of things have happened ท้ายที่สุด, ตอนสุดท้าย, ในที่สุด

consumers - people who buy things or services (individuals and families)
pass it on to consumers - when a company makes customers pay for some increase in cost of producing a product

The new revenue-sharing system, to take effect next year, will inevitably raise the financial burden on broadband service providers, which will ultimately have to pass it on to consumers.

fixed payment - one payment of the same amount (every year)
fixed payment of 250,000 baht a year

The NBTC's licence fee for ISPs will change to 2% of total revenue from a fixed payment of 250,000 baht a year.

regulator - an official who makes certain that the companies who operate a system work effectively and fairly ผู้มีอำนาจควบคุม

telecom - telecommunications, dealing with communication by telephone, internet การโทรคมนาคม หมายถึง การสื่อสารทางไกลโดยใช้โทรศัพท์ เคเบิล โทรทัศน์ วิทยุและโทรเลข

access - the ability to get something; the right or opportunity to have or use something ได้รับสิทธิ์หรือโอกาสในการใช้
internet access - how many people are able to use the internet in a place or whole country (See Wikipedia)

access to telecom services
support access to telecom services

remote - far away from cities, difficult to get to ไกล ที่ห่างไกลจากความเจริญ (ของเมือง)
infrastructure - the high-cost facilities that everyone in the economy shares (water, roads, electricity, trains, communication, telecommunications) สาธารณูปโภค
remote, unprofitable areas where ISPs will not normally invest in infrastructure.

support - help, by giving money, for example สนับสนุน
support access to telecom services in remote, unprofitable areas

universal - involving everyone ทั่วไป
universal service - the policy of providing a minimum level of an important essential service to everyone in a country (See Wikipedia)

obligation - the need to do something; when you must do something
universal service obligation - the need by law to provide some service to everyone
universal service obligation fee

imposed - force people to do something or follow some rule
imposed a universal service obligation fee

The regulator in May also imposed a universal service obligation fee, requiring ISPs to pay 3.75% of total revenue each year to support access to telecom services in remote, unprofitable areas where ISPs will not normally invest in infrastructure.

measure - an action taken to solve a particular problem มาตรการ
new measure

impede - to stop or slow down something
provide - to give someone something that they want or need
impede ISPs' ability to provide higher speeds

"The new measure may slow down the growth of the country's broadband penetration. It will also impede ISPs' ability to provide higher speeds," said Non Ingkutanon, True Corporation's general manager for wireline broadband service. True expects 12 billion baht in broadband revenue this year, but under the new payment structure the company may have to pay 240 million baht to the NBTC, 1,000 times more than under the existing model, said Mr Non.

payment formula

Anan Kaewruamwong, chairman of the Thailand ISP Association, said the new payment formula will directly affect large ISPs such as True, TOT and Triple T Broadband. Mr Non said True expects to gain half of all new broadband subscribers this year or 250,000 users.

firm - a business or company บริษัท

The firm added 130,000 customers in the first half of this year, bringing its total to 1.47 million.

fixed-line
fixed-line broadband

local - in or related to the area that you live, or to the particular area that you are talking about ท้องถิ่น
local fixed-line broadband market

Mr Non said the local fixed-line broadband market looks strong this year, expecting 20% growth instead of the 10-15% of recent years.

population - the group of people who lives in one country, area or place กลุ่มที่อาศัยอยู่ในบริเวณหนึ่ง

As of June, 5% of the total population had broadband access.

generation - a group of people in society who are born and live around the same time รุ่น (คนรุ่นต่างๆ)
wireless - radio, communication without wires (for example, most modems in houses nowadays are wireless) ไร้สาย (การติดต่อสื่อสารผ่านวิทยุ คลื่นวิทยุ ไร้สาย)
demand - the need and desire to buy goods and services by households and businesses

Even with the advent of third-generation (3G) wireless broadband service, Mr Non said fixed broadband will continue to grow for at least the next five years, driven by increasing demand for video streaming.

data - facts or information used for making calculations or decisions ข้อมูล

"True has invested in technology to provide high-speed data service over cable. "This lets us provide 10-100 Mbps to users compared with an average 3G speed of 2-3 Mbps," said Mr Non.

eventually - at the end of a period of time or at the end of a process ในที่สุด
households - families or groups of people living together (economics treats this as a unit that makes decisions)

current - of the present time ปัจจุบัน
reckons - calculate, projects , speculates or guesses that

He reckons Thailand's fixed broadband could eventually reach half of all households, up from the current 17.5% of 20 million households.

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