Broadband service, often called high-speed Internet, has had a pivotal role in communications,supplanting narrowband Internet service that falls short of meeting the needs of many users. The number of subscribers using narrowband Internet services dropped steadily to only 742,000 in 2009, whereas the broadband market experienced continuous surges in subscriptions to 2,295,000 in that same year. Of late, broadband subscribers have been switching to 4-5Mbps connection speeds from previously popular 3-Mbps.
KASIKORN RESEARCH CENTER (KResearch) holds the view that broadband market turnover in 2010 may reach THB24-27 billion, an increase of 20.2-37.4 percent, against growth of 41.7 percent in 2009 with market value of THB19.916 billion. The rise may be attributed chiefly to a rising number of new broadband subscribers - likely to reach 2.8-3.2 million this year. Presently, the penetration rate of broadband internet access stands at only 11.72 percent of the market, thus revealing vast market potential remaining for ISPs (Internet service providers), especially for ADSL (Asymmetric Digital Subscriber Line) broadband service in provincial markets.
In terms of pricing, KResearch views that broadband airtime charges will likely drop around 15 percent. However, rising demand for broadband with higher data rates may help soften the impact of price declines on ISP revenue, which may achieve an average revenue per unit (ARPU) of THB700-THB725/month – close to last year.
Therefore, investments into more advanced Internet network systems may be high on the agenda for ISPs this year. Their network outlay is thus expected to be not less than THB4 billion. This excludes investments in WiMAX technology, for which the timeframe for implementation still needs to be clarified, as well as for the ‘Wireless-Road' project proposed by the National Broadband Committee, aiming to establish a nationwide broadband network that could entail an investment of more than THB15 billion.
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