Ande Aditya


Key Strategies For Telecom Start-Up In Thailand

Key Strategies For Telecom Start-Up In Thailand

Key Strategies For Telecom Start-Up In Thailand

Thailand has seen a decline in the telecom industry over the past five years. This decline is due to significant changes in the fixed-line market and a sudden increase in the rate. One of the most critical reasons behind this is the mobile segments and sectors and their dominance, their rapid growth in the mobile broadband segment, etc. It is assumed that both mobile broadband penetration and mobile shall continue to increase in upcoming years.

However, there has always been a fervor and zeal in some people for telecom and the datahub industry. Though power stability has been a continuous issue to a certain extent due to the restriction of fibre connectivity, the quality and network performance has been made limited.

Thailand business news 2020- a change over in Thailand telecoms

Asia represents some of the most outstanding telecom world platforms for prominent industry leaders, investors, and business houses where they can meet, share and exchange ideas, listen to one another’s views and opinions, and of course, business strategies. This is to set the telecom businesses and take this business to the next level.

Here is a plan that represents the major issues that every operator is facing today. Mentioned below are five central, vital themes:

  • Network Virtualisation
  • Intelligent Connectivity
  • Wholesale Carriers
  • Telco 4.0
  • 5G new for 2020

In March 2020, a summit by Telecom world Asia will be conducted where thousands of attendees shall talk about one of the fastest-growing regions and its fast-developing market- Bangkok, Thailand. Telco 4.0 has recently been developed in Thailand with the assumption that digital technologies can boost the socio-economic development and growth of the countries.

Telecom startup overview- Thailand

The telecommunication industry emerges as one of the trendiest categories that come under the communication technology sector and its related information and databases. The telecom industry is widely operated by telecommunication or telephone companies, along with internet service providers. The Telecom industry plays a pivotal role in the enhancement of informative society and primarily in mobile communications. For any country, traditional telephone calls that provide industries are the highest revenues.

The telecom industry in Thailand is booming with the least voice calls and more texts such as emails, images, messaging, and video streaming. Nowadays, broadband information services that provide high-speed internet for any computer-based-cloud programs are entertainment anywhere and everywhere.

The growth had a significant impact on the development and is now emerging in the nations’ mobile industry, making by shifting all the data technology from 3G to 4G networks. The 3G and 4G networks had been significant growth for all Thailand telecom communications, and broadband mobile was boosting to a greater extent. Along with that, the tablet and smartphone markets were running at their peak.

Current scenario of Thailand telecom market

The present scenario of the telecom industry in Thailand witness a significant shift in terms of revenue from fixed voice to fixed broadband service. The following are significant points worthy to note in the development of the telecom industry in Thailand.

  • As per the GlobalData Report, during the year between 2019-2024 fixed telecom services market is forecasted to grow at a CAGR of 5.6%. This growth will be due to the increase in the service of the fixed broadband segment.
  • The expected growth during the same period in the revenue of fixed broadband service is a CAGR of 8.9%. And this growth will be due to the rise in fibre-to-the-home (FTTH) services.
  • Over the same period, the revenue of a fixed voice is expected to decrease at a CAGR of 7.9%. This decline will be due to a drop in subscriptions of circuit-switch and the entire voice average revenue per user(ARPU).
  • Fixed broadband ARPU is expected to rise to 23.24 US dollars by the year-end of 2024 from 20.41 US dollars in 2018.
  • Fixed voice services ARPU is likely to decline from 11.43 US dollars in 2018 to 7.09 US dollars by the end of 2024.

Towards the launch and production of 5G services, Thailand seems to have good progress. Thus, recently the National Broadcasting and Telecommunications Commission permitted users and operators to utilize the 26GHz spectrum range before the initials of 5G technology.

Critical developments in the telecom sectors

  • Interested entrepreneurs are welcome to establish Thailand as a global data centre hub to serve the nation in a fast-communicative way.
  • Thailand’s telecom market seems to take a massive move toward 5G

Grants offered by the Thai government for startups

  • TCG credit guarantee program

The TCG or Thai Credit Guarantee Corporation is a unique financial institution which is state-owned by the Thai Ministry of Finance. They had come up intending to provide strength and confidentiality to the financial institutions by offering credits to startups and SMEs. The Thai government ensures these sectors in obtaining the maximum amount of loans from the institutions.

Recently, the Thai Ministry of Finance sanctioned and approved TCG of about an eight billion baht loan all total for exciting startups and SMEs. The government also innovated with a credit guarantee period of ten to fifteen years.

Below mentioned are the criteria on which TCG shall provide loans:

  1. Up to five million baht for startups, SMEs and entrepreneurs
  2. Up to ten million baht for individuals that shall come up with innovations
  3. Up to ten million baht for juristic entrepreneurs, SMEs and startups
  4. Forty million baht for juristic entities that shall innovate and benefit the country
  • DTAC accelerate

One of the most promising and no. One accelerator house for the startup in Thailand, the DTAC drives the potential startups in reaching their goals. The company runs primarily on the three pivotal tracks-

  • Accelerator
  • Incubation
  • Special global expansion

DTAC recently invested in forty-six companies so far, with seventy per cent of the startups securing all their follow-up funding in a total of six batches. The company’s portfolio matches all kinds of sectors, industries, and big houses.

Bottom line

The mobile market had always been a matter of significance to the Thailand economy. The recent days and years, however, had brought a lot of massive changes in the mobile market along with a sudden increase in data usage.

Please read more about Ande’s thought leadership on Future Businesses and the top 10 technologies that would prevail in our future times. 

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As a Startup Specialist and the founder of Aditya Group, Thailand, Ande Aditya is often hired as a Business Advisor to assist business owners to execute their vision.

21 Industries | 22 Startups | 6 Countries | 12 Awards

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