Thailand Telecom Market- Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Thailand Telecom Market- Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The Thailand Telecom Market revenue is expected to grow at a CAGR of 3.8% over the next five years. Most major telecom companies, such as AIS, DTAC, TrueMove, CAT Telecom, and Thaicom, are based in Thailand and promote innovation by making significant R&D investments consistently.

• Key players in the market are focused on deploying a 5G network that fulfills customers' needs. A high-capacity 5G data network will also support the Thailand government's action plan for promoting the adoption of 5G Technology in Thailand. According to a GSMA, 5G will drive a GDP uplift in Thailand by USD 10 billion by the end of 2030.
• For Instance, Ericsson's collaboration with ABB enables 5G connectivity to enterprises across a broad range of industries, including manufacturing, airports, ports, oil and gas, and mining. For service providers, 5G represents the excellent potential for providing new customer experiences and driving the market growth.
• For Instance, In July this year, Ericsson partnered with King Mongkut University of Technology Thonburi (KMUTT) to support Thailand students in developing a 5 G-ready workforce in Thailand. Such initiatives will drive the telecom market to grow further.
• High installation cost is the primary restraint for the Thailand telecom market. To sustain growth in the telecom market, key players need to provide affordable services for customers.
• The COVID-19 pandemic has also changed the world. Due to the pandemic, a large portion of the Thailand population was forced to spend almost constantly at home. Thus, it increases the number of mobile subscribers and digital channels also increased. Post COVID-19 scenario created an unexpectedly high demand for mobile, fixed broadband, and OTT services.

• Thailand has the most active internet population. Key players in the market are developing fiber-based broadband services for the country to create new opportunities for the telecom market.
• The Thailand government has recently improved its regulatory guidelines for more investment in the fixed broadband segment, enabling a faster transition from DSL and cable to fiber. The regulatory authorities will further support the Telecom market growth, which plays a significant role in offering fiber-based broadband services for its customers.
• The fixed broadband service revenue will increase, driven by fiber subscription growth. For Instance, The Thailand government spent USD 343 million last year to ensure Internet broadband connectivity for 24,700 villages in the country.
• Further Key players in the market are planning to shift from coper-based broadband services to fixed fiber-based broadband services. According to Ookla Speedtest Global Index, Thailand ranked 10th with a median fixed broadband download speed of 252.80 Mbps in September this year.
• For Instance, AIS has launched a 2 Gbps fiber-optic fixed broadband service for home customers. The new high-speed offering is available in Bangkok, Nonthaburi, Pathum Thani, and Samut Prakan, with two packages offering maximum down/upload speeds of 2 Gbps/500 Mbps for USD 38.7 per month. Key players in the market offering fiber-based broadband service will further create new growth opportunities for the telecom market.

• Mobile subscriptions are growing and thus increasing the demand for mobile data. Increasing mobile subscriptions will significantly increase the demand for OTT (over-the-top) services.
• According to DataReportal, Thailand's internet penetration increased to 77.8%. At the same time, people spend an average of around nine hours on the internet each day, an increase of 4.2% from last year. It indicates that the demand for OTT services will significantly grow.
• Further Key players in the market are planning to enhance their network capacity to provide high-speed connectivity services for their customers. According to Ookla Speedtest Global Index, Thailand ranked 44th with a median mobile download speed of 76.61 Mbps in September this year. Customers are migrating to mobile-based OTT services, thus creating new growth opportunities for the telecom market.
• For Instance, In June last year, AIS appointed an official distributor to launch the highly anticipated Disney+ Hotstar streaming service in Thailand. These OTT service providers will further create new growth opportunities for the telecom market.

The Thailand telecom market is moderately fragmented due to the ongoing partnerships and current advancements in the market. Some major players in the market studied included AIS, DTAC, TrueMove, CAT Telecom, and Thaicom.

September 2022 - Chunghwa Telecom deployed a 5G Private Network for DELTA Electronics. National Telecom (NT), The WhiteSpace (The WSP), DELTA Electronics (Thailand), and Chunghwa Telecom signed a memorandum of understanding (MOU) to develop a 5G Private Network.

February 2022 - True Corporation and Total Access Communication (DTAC) entered an agreement to create a new telecom-tech company. This company collaboration aims to increase customer expectations and capture new growth opportunities in a fast-changing digital world.

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support