NEED 4 SPEED
On December 15, 2015, Thailand's telecom giants began a bidding process for licenses to launch the much-anticipated 900MHz fourth generational wireless service (4G).
With their eyes firmly on the prize, the heads of Advanced Info Service (AIS), True Move, Total Access Communication (DTAC), and newcomer Jasmine International (Jas) entered the auction knowing that a successful bid could give them a unique appeal to Thailand's 87 million mobile subscribers. After four grueling days and 199 rounds of bidding, the winners were announced—to the shock of industry experts. True Move and Jas had secured the 900MHz spectrum with bids of around $2.1 billion each, adding an additional $4.2 billion to state revenues, which totaled $6.45 billion from mobile spectrum bids in 2015. True Move, a unit of True Corporation, which is 18% owned by China Mobile and managed by the Charoen Pokphand Group, had been lagging in third place in Thailand's telecom three-horse race, with just over 20 million subscribers. Moreover, with these figures dwindling throughout much of 2015, it was generally expected that True would take the bidding process to the wire, in order to fight its way back into the market share. In contrast, however, Jas' announcement as a 4G winner raised many questions, such as whether the telecoms market could accommodate a fourth contender, and more directly whether Jas would be able to turn a profit given the high price paid for the bandwidth. Established in 1982 as an engineering consultancy firm, Jas currently has no mobile phone users and so the industry is left to speculate how and when it will make its move. One report that began surfacing in late December was that Jas is in talks with Korean SK Telecom and Japan's SoftBank over a potential strategic partnership.
In fact, prior to the auction it was widely expected that market leaders AIS and DTAC would make use of their stronger balance sheets to outbid their rivals and maintain their dominant position in Thailand's telecom sector. Founded by controversial former Prime Minister Thaksin Shinawatra in 1986, AIS has grown to acquire the lion's share of the market, with over 45 million subscribers—most of which enjoy 3G service. DTAC, Thailand's second largest mobile operator with 28.4 million users, partly owned by Norwegian telecom giants Telenor, was similarly widely tipped to introduce the 4G service, particularly after it failed to launch the 4G license on the 1,800MHz spectrum in a similar auction in November 2015. Both companies have said that failing to win the bid will allow them to improve services on their existing networks and save money for future 4G and 3G rollouts. Moreover, both firms have insisted that the winning bids were grossly overpriced, as they were nearly six times higher than the actual value of the spectrum.
Overpriced or not, True Move and Jas have inherited a unique opportunity to exert their position in a mobile market, which is surging and showing no signs of slowdown. According to a study conducted by Ericsson, 4G mobile broadband subscribers in Thailand are expected to double throughout 2016. Moreover by 2018, 40% of total mobile subscribers are expected to be on the service, ranking Thailand as the third-largest 4G market in the Southeast Asian and Oceania region, behind Australia (70%) and Singapore (80%). The major factor behind these forecasts is that mobile operators are expected to concentrate their efforts in tapping up the market share in rural parts of the country, which still have 20 million 2G users, or 28.6% of the population.
A recent study found that Thai's spend an average of 160 minutes on their smartphone per day; the second highest in ASEAN. With new services being launched, a debutant fourth operator joining the market and deeper penetration expected in rural areas, they may find themselves glued to their handsets like never before.

TABLE OF CONTENTS
Review: Diplomacy
The Times are Changing
The West may have taken a dim view on the 2014 coup, but China has been less judgmental about Thailand's domestic policy and the two countries have grown closer over the past couple of years.The West may have taken a dim view on the 2014 coup, but China has been less judgmental about Thailand's domestic policy and the two countries have grown closer over the past couple of years.
read articleGuest Speaker
HE Maithripala Sirisena, President, Democratic Socialist Republic of Sri Lanka
TBY talks to HE Maithripala Sirisena, President of the Democratic Socialist Republic of Sri Lanka, on celebrating 60 years of relations with Thailand, boosting bilateral trade, and potential opportunities with the AEC.
read articleFocus: Special Economic Zones
Zone Home
With numerous upcoming major trade deals like the TPP and CAFTA, in addition to Thailand joining the ASEAN Economic Community, the country is developing a host of strategically located and incentivized SEZs to take advantage of the upcoming opportunities.
read articleFocus: Auto Sector
Driving Force
A combination of slower global economic growth and weaker domestic purchasing power suggests that Thailand's renowned automotive sector is heading for flat growth in 2016, thereby encouraging the government to promote cutting-edge innovation across the industry.
read articleFocus: Gems & Precious Stones
Shine Bright
As a key driver of the economy, Thailand's vast manufacturing sector comes in different shapes and sizes—and colors, for that matter. One segment to have really emerged as a sparkling export opportunity over the past two decades has been the country's gems and precious stones industry.
read articleInterview
Dr. Pichet Durongkaveroj, Minister, Science and Technology
TBY talks to Dr. Pichet Durongkaveroj, Minister of Science and Technology, on the initiatives to boost innovation in the country, facilitating greater private investment, and fostering mutually beneficial partnerships with countries.
read articleFocus: E-Commerce
Down the Wire
In 2014, when Chinese e-commerce giant Alibaba made headlines for listing the largest global IPO in history (USD25 billion), many had come to recognize that the industry, which was typically dominated by Silicon Valley heavyweights, was gravitating drastically eastward.
read articleInterview
Anantachai Kunanantakul, Chairman & CEO, Siam Eastern Industrial Park (SEP)
TBY talks to Anantachai Kunanantakul, Chairman & CEO of Siam Eastern Industrial Park (SEP), on the development of the park, the benefits on offer, and plans to further develop the country's eastern seaboard.
read articleInterview
Kan Trakulhoon, Head of Working Group , Eastern Economic Corridor (EEC)
TBY talks to Kan Trakulhoon, Head of Working Group of the Eastern Economic Corridor (EEC), on the background of the EEC project, the government's push to build up infrastructure in the country, and his projections for the coming year.
read articleFocus: Water Shortage
A Drop At a Time
In 2016, many Thai's across the Kingdom will be looking out for weather forecasts—rather than economic ones—as the key indicator for the country's economic sustainability. Water is becoming an increasingly precious global commodity as populations and temperatures increase.
read articleReview: Education
Many Brains to Gain
Thailand has long suffered from an ineffective education system, with a large number of dropouts and graduates not equipped to deal with the demands of the 21st century. However, the government has been taking actions in a bid to get serious about much-needed education reform.
read articleInterview
Weerasak Kowsura, Board Chairman, Thailand Convention & Exhibition Bureau (TCEB)
TBY talks to Weerasak Kowsura, Board Chairman of the Thailand Convention & Exhibition Bureau (TCEB) & Board Chairman of Designated Areas for Sustainable Tourism Administration (DASTA), on the country's booming MICE industry and the benefits of community-based tourism.
read articleInterview
Proudputh Liptapanlop , Executive Director, Proud Real Estate
TBY talks to Proudputh Liptapanlop and Pasu Liptapanlop, Executive Directors of Proud Real Estate, on the company's development plans for Hua Hin, the prospects of the industry, and their expectations for the future.
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