Base digital economy on building blocks: DTAC

DTAC’s interim chief executive officer Sigve Brekke said the priorities were to pool existing infrastructure, build a national fibre-optics network, and conduct an auction for fourth-generation cellular spectrum licences next year.
Brekke said the government should have a clear target to become the digital front-runner in Asean with active Internet users accounting for 80 per cent of the total population by 2017 to unlock economic potential. Universal access to the Internet at affordable rates is the fundamental requirement of a digital economy.
To make this a reality, DTAC recommended two priorities. First, the country should have a national fibre-optics network, and second, the government should aim to auction 4G bandwidth on the 1,800- and 900-megahertz spectrum by the first half of next year through transparent allocation mechanisms.
He added that the government should, as soon possible, develop and announce a plan that includes redistributing the spectra currently in use. Lower bands like 700MHz and 850MHz should be included.

Spectra for private sector
“Spectra must be made available to the private sector to meet the growing consumer demand for Internet service. If there is no 4G spectrum auction by next year, the impact would be limited speed for data usage, and prices might be higher,” Brekke said.
State-owned enterprises should pool their infrastructure to build a fibre-optic network covering the entire country.
This infrastructure should be shared under a new collaborative model between the private sector and the SOEs. Brekke said the government should take responsibility on this.
The private sector will benefit from this national network when rolling out their high-speed mobile networks, as ample backhaul capacity will be available.
Wikipedia defines “backhaul” as the intermediate links between the core or backbone telecom network and the small sub-networks at the edge of the overall network. The link between the backhaul network and the home should be fixed-line broadband, DTAC believes, because of the high expected increase in data consumption, while the link between the backhaul network and the cellular tower can be via fibre optics or microwave.
The final connection to the home can be the responsibility of both the government and the private sector. For the connection to the cellular tower, there can be two options.
Under the first option, the government could sell its towers to the private sector. The resulting “Tower Company” would operate the 60,000-70,000 towers nationwide and to operate the links between them and the backhaul network.
Under the second option, the government could enter joint ventures with the private sector to operate the towers and the backhaul connection.
DTAC also recommended that all stakeholders including the government, regulators and the private sector focus on the Internet service and content ecosystem, Internet security and fair practice.
The government can play role in this mission by facilitating an environment based on transparent and investment-friendly legal, tax and regulatory frameworks to foster a competitive and dynamic ICT (information and communications technology) sector. It could digitise key public services and strengthen ICT education and digital literacy throughout the country.
The telecom regulator, apart from conducting spectrum auctions, should ensure that consumer rights and benefits are safeguarded and educate consumers on safe and secure Internet usage.
The private sector is to continue investing in high-speed Internet networks, providing innovative products, services and solutions at fair and competitive prices.
Brekke said he would follow up these proposals in the future.