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 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.