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Thailand's Telecommunications Regulator Announces New Spectrum Management Strategy |
NEWS |
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.
Recognizing the Enterprise Opportunity for 5G Revenue Uplift |
IMPACT |
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.
Continued Investments and Ecosystem Development Critical to 5G-A Success |
RECOMMENDATIONS |
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:
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.