Thailand Poised to Become a Leader in 5G-Advanced Technology within Southeast Asia with Impending Spectrum Auctions

In September 2024, the National Broadcasting and Telecommunications Commission (NBTC) in Thailand announced its spectrum management strategy for the years 2025 to 2030. As part of this plan, NBTC intends to conduct an auction of the 2.1 Gigahertz (GHz) and 2.3 GHz frequency bands in early 2025, with the goal of facilitating the deployment and implementation of 5G-Advanced (5G-A) networks by Thai Communication Service Providers (CSPs). Additionally, the roadmap also indicates plans to auction and re-farm spectrum in the 3.5 GHz frequency band—currently used for Digital Television (DTV) broadcasting—for cellular mobile services in 2027.

With 5G-A set to bring about a wave of new capabilities and features, such as enhanced uplink and downlink data throughput speeds, 5G Reduced Capacity (RedCap), Passive Internet of Things (IoT), intelligent network operations, etc., this announcement is welcome news for Thai CSPs that previously only had access to the 700 Megahertz (MHz), 2.5 GHz, and 26 GHz frequency bands for 5G services.

The uptake and adoption of 5G in Thailand continues to grow at a strong pace. As of 2Q 2024, Advanced Info Service Public Company Limited (AIS) reported that the number of 5G package subscriptions stood at almost 10.6 million with a Year-over-Year (YoY) increase of 36% and a penetration rate of ~23%. Similarly, True Corporation (True) reported robust growth, with its number of 5G subscribers reaching 11.7 million, or an overall penetration rate of ~23%. This also represented a Quarter-on-Quarter (QoQ) increase of 6.6%. However, despite the overall encouraging rate of 5G adoption among consumers, the rise in Average Revenue per User (ARPU) has remained low. For AIS, the blended ARPU for mobile subscribers increased by only 5.1% YoY to US$6.8 (THB 224) during the same period. For True, blended ARPU stood at US$6.3 (THB 207), representing a 3.9% YoY uplift.

On the other hand, there was more positive growth observed in the enterprise segment. For example, AIS reported that its enterprise business achieved revenue of US$65 million (THB 2.1 billion), a YoY and QoQ increase of 40% and 9.6%, respectively. This growth is very much aligned with AIS Enterprise’s business strategy, which is aimed at developing a robust 5G ecosystem to support Augmented Reality (AR), Virtual Reality (VR), Artificial Intelligence (AI), and IoT applications for enterprises and businesses.

As mentioned earlier in this ABI Insight, 5G-A holds much promise for CSPs in their pursuit of Business-to-Business (B2B) opportunities, with the technology supporting new features, such as 5G RedCap, Passive IoT, and enhanced uplink and downlink performance to support new enterprise applications that include machine vision, low-altitude drone economy, smart city use cases, etc. Thailand, being one of the frontrunners in the region, has actively pursued the development of a vibrant 5G ecosystem in the country.

ABI Research has identified some of the best practices the country has adopted that can serve as a good example for other countries to emulate. These include:

• Leveraging Collaborations to Develop a Strong 5G Ecosystem: Enterprise 5G adoption will only see significant growth if more enterprises: 1) are aware of 5G capabilities; 2) understand how they can implement 5G; and 3) develop customized 5G solutions to meet their needs. Therefore, it is important for CSPs to effectively communicate the benefits of their 5G and/or 5G-A networks, and how these networks can be used to solve common pain points encountered by enterprises. It is encouraging to note that there has already been significant activity in this space to achieve this in Thailand. For example, AIS has established its AIS Evolution Experience Centre (AIS EEC) in Thailand’s Digital Valley in the Eastern Economic Corridor. This innovation center aims to support the development and co-creation of new 5G applications and use cases. Separately, Ericsson Thailand built a 5G Innovation and Experience Studio, located in the Thailand Digital Valley, which aims to provide a sandbox environment to develop and test new 5G applications. Such opportunities for collaboration will be key to encouraging innovation in the country.
• Continued Investments in Technology and Infrastructure: To ensure that customers can continue to enjoy optimal services, Thai CSPs have also continued to invest in new technologies and in modernizing their mobile networks. It has been reported that Thai CSPs have already completed the verification of most 5G-A technologies in 2023. Additionally, there is also strong commitment from the CSPs to continue upgrading their networks, with AIS setting aside up to US$910 million (THB 30 billion) to enhance its 5G networks, home Internet, and 5G platforms in fiscal year 2023. Such investments will be required to ensure high-quality network services to support the critical needs of enterprise customers.
• Strong Government Support and Direction: Clear government direction, particularly related to frequency spectrum assignment, will also be a critical factor to 5G success in the country. NBTC’s latest spectrum strategy and roadmap is a good example of such government leadership, with the regulator allocating the 2.1 GHz and 2.3 GHz spectrum bands to Thai CSPs to facilitate the rollout of 5G-A networks. Additionally, the planned auction of the 3.5 GHz band for 5G in 2027 provides much assurance for CSPs in the country, enabling them to plan ahead for the eventual usage of this 5G spectrum band. Mobile regulators in other countries should also consider developing transparent spectrum roadmaps to facilitate infrastructure and network planning by their respective domestic CSPs.

ABI Research believes that there is significant potential for 5G and 5G-A technology in the B2B space. In particular, the smart manufacturing vertical holds strong promise, with digital spending on smart manufacturing solutions in Southeast Asia (SEA) expected to grow from US$70 billion in 2023 to over US$300 billion in 2028 (at a Compound Annual Growth Rate (CAGR) of 32%). There is opportunity for CSPs to capitalize on these growth prospects.