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Internet Thailand & Pre-paid Internet in Thailand

Internet Thailand & Pre-paid Internet in Thailand. Morragot Kulatumyotin Internet Thailand Public Company Limited November 21, 2001. Thailand Internet index. 18 commercial ISPs 2 domestic Internet exchanges: CAT-NIX and NECTEC-IIR 642 Mbps total international bandwidth (in)

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Internet Thailand & Pre-paid Internet in Thailand

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  1. Internet Thailand & Pre-paid Internet in Thailand Morragot Kulatumyotin Internet Thailand Public Company Limited November 21, 2001

  2. Thailand 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

  3. 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 ISP market in the country

  4. Moving away from ‘pure’ access to e-commerce • Thailand Internet model still in the “pure’’ access stage • Market moving towards content & application providers

  5. Inet roadmap 1992 1995 1996 1997 2001 • 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 The Cabinet approved the establishment of Internet Thailand Co.,Ltd Evolved from the academic network run under the name “ThaiSarn” • Received • ISO 9002 • from SGS • Converted • to Public • Company • Limited • Privatization • (Go Public)

  6. Shareholders’ structure Public NSTDA 17% TOT 44% 16% 16% 7% CAT Employees No. of shares : 250 Million shares

  7. Nature of business • Internet Service Provider (ISP) • E-business Infrastructure Provider

  8. Core services • Connectivity • Internet Data Center • IDC/hosting • ASP • Colocation • collaborative commerce • e-commerce

  9. Company infrastructure Domestic Connectivity International Connectivity TeleGlobe (USA.) 45 Mbps (cable) IIR (NECTEC) 200 Mbps A-Bone (Japan) 2 Mbps (cable) Inet’s Backbone NIX (CAT) 512 Kbps 8 Mbps (cable) IIG (AT&T network)

  10. Business vision The company’s vision is to become the Leading e-business infrastructure provider in Thailand

  11. Performance

  12. Pre-paid Internet in Thailand

  13. Dialup service evolution in Thailand 1995 Monthly basis service Pre-paid and pay per use basis service 1998 Time-zone basis service Unlimited basis service 2001 Free Internet

  14. Inet 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

  15. Nationwide coverage

  16. CAT 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)

  17. Pricing 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.

  18. Performance Net profit grows 3-fold in 3 years

  19. Unlimited basis • 300 - 500 baht/month at 1-5 hours/session • Free Internet • domestic only (TOT)

  20. Where to buy, where to pay? • Via vendors (book shop, retail store, convenience store) • Via mobile phone (WAP) • Via banking services

  21. Via web site (package, refill) • Via credit card/e-commerce • Via ATM machine

  22. Why is pre-paid Internet popular in TH? synergy USER ISP • convenience, can buy anywhere • many package sizes • flexible/ fair usage • no commitment to ISP • positive cash flow • varied distribution channels

  23. Q & A

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