Effective mobile broadband policy can boost GDP: study
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EFFECTIVE government policy in Thailand could increase mobile and fixed broadband penetration to 133 per cent by 2020, up from 52 per cent in 2013, according to a report by GSMA, an international association of mobile operators and related companies.
This growth would lead to a cumulative increase in gross domestic product of US$23 billion (Bt766 billion), and the increased access to mobile broadband infrastructure would generate new skilled jobs, strengthen digital inclusion and expedite the goals set out in the government’s Digital Economy Plan.
GSMA’s chief regulatory officer, Tom Phillips, said mobile broadband was critical in achieving the Thai government’s strong ambitions to turn the country into a “digital economy” and boost digital inclusion.
The impact of mobile broadband access is profound, from improving productivity and driving the creation of new businesses and skilled jobs, to delivering mobile healthcare and money services and enabling smart cities.
Realising the potential of mobile broadband in Thailand hinges on the release of spectrum for fourth-generation broadband, along with policies aimed at promoting a truly competitive, dynamic, investment-led mobile sector.
Digital economy
Moreover, the report “Building Thailand’s Digital Economy and Society”, developed by Analysys Mason, highlights six key areas where appropriate policy and regulation will be required to ensure that mobile broadband develops successfully here.
First is to provide fair, transparent access to mobile spectrum by transitioning from a concession to a licensing regime.
Second is to award available spectrum in the 900- and 1,800-megahertz bands at the earliest opportunity to expand 3G and 4G mobile services, as the swift adoption of 3G in Thailand indicates there is demand for mobile broadband.
Third, plan to make the globally harmonised 700MHz “Digital Divid-end” band available to mobile to expand coverage in urban and currently under-served rural areas.
Fourth, establish a business-friendly environment and a level playing field with state-owned companies through transparent processes and stakeholder consultation to maximise the certainty of investment in cutting-edge technologies and services.
Fifth, guarantee the independence of the National Broadcasting and Telecommunications Commission by ensuring it is structurally and functionally separate from the government and operates with a clearly defined mandate, leading to greater investor confidence.
Last is to adopt government-led demand policies to build awareness of the Internet and strengthen digital literacy, encouraging mobile broadband usage by the Thai population.
Successful mobile applications are already offered in Thailand, which align with the goals of the Digital Economy Plan. Mobile operator Total Access Communication (DTAC) has a “Farmer Information Superhigh-way”, which has empowered 250,000 farmers through access to essential agricultural information, improving yields and profitability.
Similarly, TrueMoney enables 25 million people to execute e-payment transactions and is expanding to person-to-person payment for unbanked customers.
The further roll-out of 4G network infrastructure in Thailand will provide a platform to extend mobile operator offerings significantly in such areas as mobile money and digital commerce, as well as the creation of new services to respond to the needs of local populations.
“We encourage members of the Digital Economy Committee to consider the sector as a critical enabler for the development of a vibrant digital economy and society. With so much at stake for Thai citizens and businesses, we cannot afford to fail,” Phillips said.
