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Internet Thailand Internet Thailand & &
Pre-paid Internet in Thailand Pre-paid Internet in Thailand
Morragot Kulatumyotin
Internet Thailand Public Company Limited
November 21, 2001
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Thailand Internet indexThailand Internet index
• 18 commercial ISPs• 2 domestic Internet exchanges: CAT-NIX and
NECTEC-IIR• 642 Mbps total international bandwidth (in)• 526 Mbps total international bandwidth (out)• 3.5m Internet users
As of Nov 01
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ISP market in the countryISP market in the country
• A-net Internet• Asiaaccess • Asianet• Chamanan worldnet • CS Internet • Data Line Thai• E-Z net• Fareast Internet
• Idea Net
• Internet Thailand• Jasmine Internet• Loxinfo• KSC• Pacific Internet• REACH (Thailand)• Roynet• Samart Internet• Siam Global Access
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Moving away from ‘pure’ access to e-commerceMoving away from ‘pure’ access to e-commerce
Portals ASPs E-Commerce
Hosting Network AppsAnd Data
Intelligent Distribution
Access Broadband Backbone
Thailand Internet model still in the “pure’’ access stage
Market moving towards content & application providers
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Inet roadmapInet roadmap
• Granted first ISP license under the name ITSC• Thailand’s first commercial ISP
• Established Internet Thailand Co., Ltd.• Granted second ISP license under the name INET
1992
• Received ISO 9002 from SGS• Converted to Public Company Limited• Privatization (Go Public)
The Cabinet approved the establishment of Internet Thailand Co.,Ltd
1996 1997 20011995
Evolved from the academic network run under the name “ThaiSarn”
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Shareholders’ structureShareholders’ structure
PublicPublic NSTDANSTDA
CATCAT
TOTTOT
EmployeesEmployees
17%
16%16%
7%
44%
No. of shares : 250 Million shares
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Nature of businessNature of business
• Internet Service Provider (ISP)• E-business Infrastructure Provider
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Core servicesCore services
• Connectivity• Internet Data Center
– IDC/hosting– ASP– Colocation– collaborative commerce– e-commerce
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Company infrastructureCompany infrastructure
IIR (NECTEC)
A-Bone (Japan)
TeleGlobe (USA.)
IIG (AT&T
network)
NIX (CAT)
Inet’s Backbone
200 Mbps
512 Kbps
45 Mbps(cable)
2 Mbps(cable)
8 Mbps(cable)
Domestic Connectivity International Connectivity
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Business visionBusiness vision
The company’s vision is to become the
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PerformancePerformance
140
219
310
428
104144
237
324
2553 51 73
0
100
200
300
400
500
1998 1999 2000 2001
unit: mil. baht
revenue operation expense net income
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Pre-paid Internet in ThailandPre-paid Internet in Thailand
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Dialup service evolution in Thailand Dialup service evolution in Thailand
1995
1998
2001
Monthly basis service
Pre-paid and pay per use basis service
Time-zone basis service
Unlimited basis service
Free Internet
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Inet implementationsInet implementations
• In-house development• In 3 years since market launch, there is
no successfully cracked ticket. (use strong encryption algorithms)
• about the same time as prepaid cell phone
• co-branding
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Nationwide coverageNationwide coverage
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CAT pricing regulationCAT pricing regulation
• Individual services– monthly basis: start up B.300, monthly B.900/20
hours, extra charge B.40/hr.– prepaid: B.600 for 10 hours, >= 10 hours =
B.50/hr.
• This is a ceiling.• There is no minimum rate. (after Sep 4, 97)
(did not reflect market reality)
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Pricing evolutionPricing evolution
• Monthly basis– 900 baht/20 hours/month = 45 baht/hr.
• pre-paid basis– 1998: 30-40 baht/hr.– 1999: 20-30 baht/hr.– 2000: 10-25 baht/hr.– 2001: 3-15 baht/hr.
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PerformancePerformance
140
219
310
428
104144
237
324
2553 51 73
0
100
200
300
400
500
1998 1999 2000 2001
unit: mil. baht
revenue operation expense net incomeNet profit grows 3-fold in 3 years
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• Unlimited basis– 300 - 500 baht/month at 1-5 hours/session
• Free Internet– domestic only (TOT)
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Where to buy, where to pay?Where to buy, where to pay?
• Via vendors (book shop, retail store, convenience store)
• Via mobile phone (WAP)• Via banking services
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• Via web site (package, refill)
• Via credit card/e-commerce• Via ATM machine
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Why is pre-paid Internet popular in TH?Why is pre-paid Internet popular in TH?
synergysynergy
• convenience, can buy
anywhere
• many package sizes
• flexible/ fair usage
• no commitment to ISP
• positive cash flow• varied distribution channels
USERUSER ISPISP
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