Telecom Equipment
Thailand
Overview
The Harmonized System code (HS code) lists import statistics related to telecommunication equipment/products from the Customs Department of Thailand. The market size is estimated in the following table. The statistical data below do not cover consumer telecommunication-related products such as telephone answering machine, television, or radio broadcast receivers.
2004 2005 2006 (estimated)
Total Market Size 1280 1530 1680
Total Local Production 1652 1943 2130
Total Exports 3064 2173 2500
Total Imports 2343 2913 3846
Imports from the U.S. 61.02 81.4 92.6
Remark: All figures are in US million The above statistics are unofficial estimated
Source: The Customs Department of Thailand CISCO Corp. (Thailand) Motorola (Thailand) Co., Ltd.
• Except for Bangkok and Greater Bangkok areas, customer base are still growing steadily and service providers with larger networks still have an advantage in capturing a large market share in those areas. Therefore, in 2006, the business strategy for the big operators such as AIS, True Move, and DTAC has focused on expanding and modernizing their networks to enable to provision of the converged services. The spending amount for extending their network is expected to be approximately $ 700-800 million in 2006.
With the wave of new information and communication technologies, the Thailand ICT market is expected to grow around 17 percent this year to a value of $ 12.64 billion.
In late 1990s Thailand’s cellular phone service grew significantly and overtook the number of subscribers of the fixed line telephone service in 2001. Given the continuous fall in handsets prices and attractive sales promotion campaigns. It is no surprise that the cellular phone users are expected to reach almost 40 million by the end of 2006. The market is presently dominated by GSM-based technologies. Previously, the competition in the telecom sector tends to be on non-price area. Major operators, particularly mobile operators, compete using product differentiation through service quality, advertising and value-added services. However price competition is now heating up. Fixed-line operators drastically cut down the price for long distance and international calls. For mobile, the price particularly for pre-paid option, went down to as cheap as two cents per minute.
While mobile voice services are now a commodity in a mature market, operators need to broaden their offerings to win customer loyalty, retain their customer databases and cash in on the huge potential for new revenue. Non-voice technology such as Short Message Service (SMS) is much in demand and is now improved to be more attractive and innovative. Mobile music is another service that generated revenues for the operators approximately $ 18.34 million in 2006 and will reach $ 21.19 million and $ 23.92 million in 2007 and 2008 respectively. Demand for access to wireless non-voice communication grew by 30% in 2005 worth $350 million. The major driving force was GPRS enabling mobile handsets and the growth of mobile phones and internet users.
Best Products/Services
Best prospects in Telecommunication sector include:
2G Network maintenance
3G Network upgrades
Broadband Internet Infrastructure
Wireless communication network
Opportunities
Telecommunications is regarded as an important infrastructure for the new knowledge-based economy and the ways people live, work, learn and play. The cellular mobile phone and Internet services have expanded rapidly. The supply of fixed line telephone service has not reached a saturation point, but still cannot provide service to "everywhere" in the country and there remain many people waiting to have access to the phone service, especially in the remote areas.
Stronger competition among telecommunication operators in Thailand will continue in 2007 and the next few years to support their existing network and to prepare for a new technology, including 3G. In the present circumstance, the telecommunication companies need to both strengthen their organization and expanding their new networks to prepare for future competition.
The rapid expansion of the telecom market, including internet usage and the strong competition among existing operators boost demand for the infrastructure and subscriber equipment, and application software. These demand are creating great opportunities for
U.S. telecommunication suppliers.
U.S. exporters are highly encouraged to appoint a local agent to deal with regulations related-issues, bureaucratic procedures, local business practices and marketing. With telecommunication equipment, foreign suppliers require a distributor to submit type approval application the National Telecommunications Commission.
Resources
U.S. Commercial Service # 302, 3rd Floor, Diethelm Tower A, Wireless Road, Pathumwan, BKK 10330 Tel: 662-205-5090 Fax: 662-255-2915 Contact: Oraphan Boonyalug, Commercial Specialist E-mail: oboonyal@mail.doc.gov
Ministry of Information and Communication Technology 89/2 Moo 3 TOT Corporation Pcl. Building 9, ICT 2 Floor, Chang Watana Road, Laksi Bangkok 10210, Thailand Tel: 662-568-2584 Fax: 662-568-2583 Contact: Kraisorn Pornsutee, Permanent Secretary E-mail: kpornsutee@hotmail.com
The National Telecommunications Commission 87 Paholyothin Soi 8, Samsennai, Payathai Bangkok, 10400 Tel: 662-279-1842 Fax: 662-616-7499 Contact: General Chuchart Promprasid, Chairman of National Telecommunication Business Commission
Local event:
Bangkok International ICT Expo 2007 August 1-5, 2007 Impact Exhibition Management Co., Ltd. 99 Popular Road, T. Banmai, A. Pakred, Nonthaburi, 11120, Thailand Tel: 662-504-5050 Fax: 02-504-5079 URL: www.impact.co.th Contact: Khattiya Hiruntoe, E-mail: khattiyah@impact.co.th