Broadband Price Will Drop To Less Than 1,000 Baht

[Sunbelt Asia]

ICT Ministry to cut cost of broadband Internet access

Users surf the Internet at the first `GoodNet' Internet cafe on the sixth floor of the Big C superstore on Rajadamri Road. More Internet users are expected to use broadband connections to surf the Internet next year when the broadband price will drop to less than 1,000 baht per month. _ KOSOL NAKACHOL

TOT, CAT to offer the initial service

Karnjana Karnjanatawe

The Information and Communications Technology (ICT) Ministry will reduce the cost of broadband Internet access to below 1,000 baht a month with no time restrictions as a New Year gift to the people.

ICT Minister Dr Surapong Suebwonglee said the goal was to achieve one million broadband Internet subscribers by the end of 2004.

Today, there are an estimated six million Internet users in Thailand, of which only 12,000 were broadband Internet subscribers.

``It is not an aggressive goal to have one million Internet users out of six million using broadband once the price is more affordable,'' he said, adding that access providers can lower the fee but extend their customer base.

``Sale margins will be reduced in order to create more purchasing volume,'' he noted.

TOT Corp and CAT Telecom will be the initial providers for the project, called ``Broadband Ua-Arthorn,'' while business models for Internet service providers will be released in January.

At present, Telecom Asia provides the cheapest broadband Internet connections at 550 baht a month with unlimited hours of use for a 256Kbps link, but the service is limited to domestic access only.

``Our goal is to provide unlimited access including access to web servers broad and the price shall not be over 1,000 baht a month,'' Dr Surapong said.

International bandwidth consumption is expected to reduce as many popular web sites are already have their web servers here, he said, adding that the ministry had a plan to increase local web content next year.

As part of the Broadband Ua-Arthorn project, the ministry would also ask for support from modem suppliers.

``We will provide a Ua-Arthorn broadband modem and the price shall be around 1,000 baht,'' the minister said, adding that three suppliers have shown an interest in participating: Ericsson, Samsung and Siemens.

The ministry also recently held talks with ISPs to come up with a solution to offer low-cost broadband Internet access early next year and compete with the services offered by TOT and CAT.

By January it wants to have a model to help ISPs cut their operation costs in order to be able join the project.

Representatives of all ISPs met with the minister. In summary, they need the ministry to help persuade CAT Telecom to reduce its costs for Internet port rental, international fees and half circuit fees for domestic links, said Dr Surapong.

``At present, the cost of international links is one third of their operation costs while the domestic connection costs are also high. We have to find out why and talk to the CAT to find proper solutions,'' he noted.

In addition, it is also possible that the government might invest in a international pipe of at least 1GBps to support the low-cost broadband project.

CS Loxinfo deputy managing director Anant Kaewruamvongs said the ISP fully support the initiative of the ICT Ministry.

``It is a shame that other countries can provide 1,000-2,000 baht broadband access, but we cannot,'' he said.

Major obstacles were the ISPs' operation costs. If these were reduced, he argued, there would be a price war on broadband Internet next year.

CS Loxinfo, which claims around 4,000 broadband subscribers, would focus on developing content to attract new subscribers.

However, Mr Anant said the goal of one million Internet broadband subscribers might be too high.

``We're starting from almost zero, from the basement. It will need various pushes in order to achieve the one-million-user goal,'' he noted.

TA director and general manager Noppadol Dej-Udom said TA expected only 200,000 broadband Internet users for the whole market next year.

He said although the prices are more affordable, there is also a lack of content. While the project would create more awareness among content providers to host their web sites in the country, they also need to be ready for the growth of traffic on their sites, he added.

IDC senior telecom analyst Thaweesit Kun-ongkhananon said low-cost broadband was certainly a step in the right direction in terms of bringing broadband to a wider audience.

However, IDC believes that even 750 baht a month was relatively expensive for many Internet users, even in Bangkok. The research firm suggests that the target of 1 million subscribers will be hard to attain by the end of next year.

Thaweesit also noted that the subject of access is important, as many parts of Bangkok are still not yet served by broadband access. This situation cannot be immediately resolved, he noted.

Internet Thailand president and CEO Trin Tantsetthi said the cheap broadband service could also open up new services such as voice over IP. But any new business would depend on the National Telecommunications Commission.

Companies would be able to create business models once the NTC is in place and can issue licences.

After that, broadband services might be expanded to a broader range of user groups and not limited to the business sector, Mr Trin said.

With new technology, the service will not be restricted to a certain area, such as where fixed telephone lines are available, he said, adding that the business model and growth would be similar as for fixed line and mobile networks.

Mr Trin predicted that in 2004, new services would be based around applications, especially real time information services, entertainment applications and services that help customers in terms of reducing costs. Such applications would be developed by the software industry.

For ISPs, he said non-access services would grow more than access, as there was more opportunity for adding value. ISPs are the channels for users to access the network and use applications.

Applications would become of premium value, especially when large networks _ such as the government's MIS system _ take advantage of them, he said

http://www.bangkokpost.net/311203_Database...003_data10.html

[Guest chingy]

All this talk about cheap broadband is BS

The only question you need to ask them, (is it unlimited international browsing) if the answer is a no don't wasted your time stick with dial up.

[sabaijai]

Variations on this same article have been popping up for weeks. Yet the articles never mention a date the cheap broadband begins, just 'next year' or occasionally 'January'. Anyone know the date and where to get it?

And it won't be international?

[singa-traz]

KSC has their offering on the web:

- http://www.ksc.net.th

A bit short in description of what you would really get but there is a number to call:

- Call 02-979 -7000 today and press 1

I like the unlimited access for international bandwidth after mid-night

That's a start.

[Jeepz]

That would work out just perfect for all the drunks that have to go home if the new hours for bars go into effect, right?

Jeepz

[Guest IT Manager]

TA is rolling out local and International. ISP and line included 6K per month. Details when they come to hand. I have been offered it for one of my corporate clients already.

TT&T have international in situ, in CM, so they have in Bagkok already.

[PlanetMan]

The spokesperson in the press release in the initial posting says that current high broadband prices are due to ISP operating costs. This is a bit of a fig leaf. The real issue, the one that causes Thai bandwidth rates to be 30-80 times, on a bit per second basis, that of other countries, is the lack of competition among international bandwidth service providers. Meaning that as long as CAT retains their bandwidth monopoly we can expect to enjoy high prices, low throughput, and the occasional "Internet is down" events when a circuit fails in Pethchburi or somewhere else along a non-redundant or non-diversified path.

As CAT is not ABOUT to relenquish their monopoly the only way to lower the price to consumers is to reduce the throughput. That this already is common practice can be seen by simply comparing the price and throughput of "Home Pack" versus "Corporate Pack" ADSL offered by all the ISPs. Here is how THIS is done. The ADSL service providers, TOT, TT&T, TA, route the IP traffic of multiple ADSL circuits into 2 Mbit circuits destined for an ISP. How many ADSL circuits get routed to a single 2 MB link depends on what they call the "engineering ratio", which might more accurately be called the "concentration ratio." This refers to how many ADSL circuits are "concentrated" into a single 2 MB circuit.

Take for example, yer standard 256/128 kbps ADSL circuit from the ADSL service provider's central office to a house. If 8 such circuits were all routed to the same 2 MB line then the concentration ratio is 1:1 (8 times 256 k = 2 M. For simplicity set aside the issue of symmetric traffic.) Every ADSL circuit would receive full 256 kbps speed, regardless of what the other ADSL users were doing. I suppose this also could be called a "leased line", because probably no ADSL service provider in the world guarantees a 1:1 concentration ratio ;-)

In Thailand the ADSL service providers usually concentrate 15:1. Meaning the bandwidth you need to view a page on thaivisa.com is already being used by 15 other thaivisa.com readers. This explains the disappointing performace of even 512 kbps ADSL (Home Pack) You can do this math for yourself. CAT web pages offer 2 Mb circuits for THB 300,000/month. Unlimited 256 kbps ADSL from an ISP costs about THB 6,000/month. If you subtract out about 1,000/month the ISP pays to the ADSL service provider (playing fast and loose with the numbers here, for simplicity then the ISP nets about THB 5,000/month from a 256 kbps line. To simply pay the cost of the CAT 2 MB circuit requires 60 ADSL subscribers (60 x 5,000 = 300,000) If they are to cover their expenses and make a profit on it, double that. Hence, they cram the equivalent of 120 256 k ADSL circuits into a single 2 MB line. And "why not", they probably say. These are the cream of the crop users. If they can afford broadband at all then they can afford to pay dearly for it.

Statistically such concentration may not be so bad, because at any given moment the probability is that not all users will be using their ADSL. Thus, if you really want good ADSL throughput, you should use yours at times when other users are less likely to, like in the wee hours. Too bad if you have something important to do at such times, like sleep. Otherwise, if many users use at the same time, each user sees slow speed and poor performance, which is generally the case.

Corporate Pack ADSL has a bit better throughput, possibly having a concentration ratio of 10:1 or 8:1. But the prices rises more dramatically. If throughput is really mportant to you then get a leased line, but the price of those is truly astronomical. Maybe THB 30,000/month for a 256 kbps leased line. ISPs have said off the record that the service providers don't ewat to lower leased line prices for fear of cannibalizing their ADSL business. Makes wireless broadband like 802.16a appear all the more attractive.

In this context the proper definition to use for the word "pack" in "Home Pack" is the one along the lines of "to cram much into little", like overstuffing a suitcase.

The idea that low priced broadband can be offered to the masses while CAT's monopoly is retained just doesn't stand up to scrutiny. Did some government talking head last week say Thailand is "very close to joining the first world"?

[singa-traz]

As CAT is not ABOUT to relenquish their monopoly the only way to lower the price to consumers is to reduce the throughput.

...

The idea that low priced broadband can be offered to the masses while CAT's monopoly is retained just doesn't stand up to scrutiny. Did some government talking head last week say Thailand is "very close to joining the first world"?

CAT will have to give up ... at least by 2006. WTO commitment.

Read this old article:

- http://www.findarticles.com/cf_dls/m0NEW/1...1/article.jhtml

Or do a google search with the following keywords: Thailand 2006 telecom

Again this is a battle for big boys and big $$$ (CAT ^ TOT).

As for broadband for the masses ... yes, they have cheap broadband access for local content (Thai), if hosted in Thailand.

What they should do is:

- cheap local access (available now)

- charged by volume and not time for international access. (not yet available)

Other countries have started moving away from the unlimited package to a volume based (how much you download), because you can better match your revenue and cost, as well as better control the High Bandwidth User (who download/trade porn movies 24/7 ... ).

For this, ISP needs to change their billing system ... which could take a few month.

Hope 2004 will be the year broadband start to be affordable in Thailand ...

Unlimited 128K for less than 3,000 THB per month (currently around 5-6K) by the end of the year ?

[KenUdon]

Is the infrastructure actually in place for broadband be to be this widely available?

If it isn't, can it be done in the time-frame they are quoting?

[Guest chingy]

I hated Monopoly

[..::LegalAlien::..]

Cheap Broadband!!!

I could use some of the expensive stuff... If it was even available

[phazey]

is this a good deal ?

http://www.ji-net.com/zone/DSL-Compax.asp

./P

[singa-traz]

is this a good deal ?

http://www.ji-net.com/zone/DSL-Compax.asp

./P

Few conditions for this offering:

- Price does not include DSL access Fee (Telco ?)

- Limitation of download per Hour (70/140MB)

But this is a start, and the JI guys seems to understand how to package their offering.

What happen after for the 71 MB ? ... start charging additional, or stop downloading /

[phazey]

hm...

by my early morning calculations, to download 140MB an hour would need a 300kbit connection banding away constantly at full whack....does not sound to bad at all.

Alough i understand the limitations, these limits can easily be pushed with the current bane of the internet - P2P downloading.

My interests would purely be either gaming (sometimes) and more over communications (messenger and the like).

I'm sure with some careful throttling, the limit could easily be adhered to.

./P

[sniffdog]

Yes, phazey your calculation were correct:

300kbit=40kbyte=2,4 mb per minute x 60 = 144 mb per hour.

If I look at my dial up (48kbytes/sec) .... around 5.3 kilobyte per second = 318 kbytes per minute x 60 = 19 mb per hour

512/256 should be around 10 times as fast .... 10 x 19= 190 mb per hour - let's say a 20% reduction in overhead = 152mb.

But that is constant downloading, no time to read pages. In other words, it is my opinion that with constant downloading or gaming the 140mb limit would be quite possible to surpass.

After all this technical babble, some more practical:

TA Hi Speed is probably the best deal at the moment. Prices for localnet AND 40 hours of International use:

256/128 THB 750 / 14 baht over 40 hours

512/256 THB 1,150 / 24 baht over 40 hours

1024/512 THB 1,850 / 45 baht over 40 hours

Modem around THB 2,000. You can take it under your arm and install it yourslf (USB).

Costs includes DSL service + ISP

There is a 'show' at Pantip until Febr. 1. You can register there ....

A question ... I use an American proxy server to be able to surf some blocked sites. Can you use the same proxy server with a DSL connection?

[phazey]

have a look at http://www.proxify.com - quite useful little anti-censorship thing.

./P