Like water, electricity and gas, internet access has been shown by the pandemic to be a necessity for everyone, households and enterprises.
As mentioned by the United Nations’ Department Of Economic and Social Affairs, the new normal is digital. To keep sustain social activity and increase digital literacy, the top priority is to advance the availability of quality broadband services to all inhabitants, specifically including low income, insular and rural groups. Public funding subsidies and tax incentives are the best means for public authorities to promote rapid broadband development, particularly for fixed network rollout.
Generally speaking, four major factors would motivate the government to intervene in the telecommunications market with public funds：
- To strike a balance between competition and investment in the market.
- To implement broadband universal utility services.
- To strengthen national competitiveness with digital technology
- Accelerate digitalisation, improve people's digital literacy, and increase GDP
Here we can gain insights from Thailand’s good practice. The Thai government's subsidies for fixed broadband infrastructure and universal service obligation (USO) started in 2016 are now in their fifth year.
The Thailand Digital Economy and Society Development Plan from MDES, MDES Action Plan (2018-2022) and ONDE Action Plan (2022-2027) have five key targets related to the development of fixed broadband networks, as follows:
1st Target: By 2022, the country's fixed broadband network is expected to be expanded to all villages. By 2027, all Thai households are expected to have access to fixed broadband. Presently, residents, businesses, and government sectors are able to connect to the internet via fixed broadband networks in all cities and 74,9876 villages. However, in order to achieve the goal of providing high quality broadband to all households, fixed broadband coverage must be expanded to cover all households, particularly those in rural areas, unattractive investment areas, and private areas (networks in private areas such as residential buildings, office buildings, housing estates, and industrial parks).
2nd Target: By 2022, it is proposed that every village will have access to fixed broadband speeds greater than 100 Mbps. By 2027, fixed broadband speeds of at least 1 Gbps will be available in the municipality, economic zone, public utility, and learning centre. The average download speed of fixed broadband connections in urban areas is currently 191.7 Mbps. However, some urban households continue to use copper and coaxial cables. To meet the requirements of high-quality broadband, they should be replaced with fibre optic networks. Additionally, 10,000 villages connected to the internet via the "Village Broadband Internet Project" can do so at download speeds of up to 1000 Mbps. As a result, the fibre optic network's speed in Zone C and Zone C+ will be increased to achieve the 100 Mbps target by 2022.
3rd Target: By 2022, the target is to increase household fixed broadband penetration to more than 70% of the total, and to more than 80% by 2027. It also aims to increase fibre to the home (FTTH) penetration to 50% of households by 2022, and to 75% by 2027. At the moment, fixed broadband households penetration is 51.5% and FTTH penetration is 30%. By 2027, an additional 28.5%, or approximately 6.5 million households, will be connected to meet the fixed broadband penetration target. The additional households mentioned above may include those living in areas without fixed broadband internet coverage, low-income households, and households that rely entirely on mobile internet. Moreover, FTTH penetration is expected to increase by 45%, or around 10 million households by 2027, as FTTH technology is the primary technology for fixed broadband development in Thailand. It is expected to grow rapidly in the future and eventually replace other wired technologies which tend to decrease in usage.
4th Target: By 2022, the goal is to reduce fixed broadband service prices to 2.5% of GNI per capita, and to less than 1% of GNI per capita by 2027. Thailand's fixed broadband prices currently amount to 2.8% of gross national income per capita. To achieve the goal of 1% of GNI per capita by 2027, fixed broadband service prices must be reduced by 1.8% of GNI per capita. As a result, the target monthly fee for fixed broadband is around 260 THB
5th Target: By 2027, the goal is to expand the Thai digital economy contribution level to 25% of Thai GDP. In 2017, Thailand's digital economy contribution level was 17% of GDP. To achieve the 2027 target, an additional 8% of investment value from digital and e-commerce sectors will be necessary. On a global scale, the definition and methodology of valuing digital economy activities are currently under research and development.
Besides accelerating municipal fibre optic network expansion, the country's overall fixed broadband penetration rate should be increased by increasing the number of fixed broadband subscribers, particularly in non-municipal areas. The number of connections will grow rapidly in municipal areas as operators accelerate network expansion through infrastructure sharing, particularly fibre pre-deployment in private areas. Internet utilisation should be increased in rural areas by encouraging residents to use internet-based applications that enhance the quality of life. This will increase the number of fixed broadband users and has the potential to close the digital divide.
