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12 May 2016

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Investments in Fiber Optic Broadband Internet in 2016-18 Bolster Upstream Businesses, with Nearly THB200 Billion Market Value (Current Issue No. 2735)

คะแนนเฉลี่ย
Netizens are increasingly downloading large files from the internet, resulting in massive volumes of data traffic nowadays. Moreover, intense competition between fixed broadband internet service providers (ISPs), especially with the arrival of a new player offering service via fiber optics, has caused established ISPs to upgrade their existing networks to assure their own market shares. Given this, KResearch expects that investments in fiber optic network activities for fixed broadband internet services will total THB173 billion during 2016-2018. Such development would benefit upstream businesses, e.g., retailers of telecom equipment, as well as network installation service providers. How they are likely to reap from such opportunities is elaborated below.
For retailers of telecom equipment, some of them have the capacity to produce some of their own products, but will still import a great deal from leading global manufacturers. In 2015, equipment imported from China accounted for 68.2 percent of all our telecom equipment market, while 13.0 percent was made here, plus 3.6 percent and 3.4 percent from Malaysia and the US, respectively. KResearch views that businesses related to telecom network equipment retailing that will benefit from such investments will be importers and distributors, both Thai and foreign companies' representative offices here.

Moreover, KResearch has assessed that great opportunities are awaiting telecom network installation service providers that are equipped with skilled personnel and are competent in new technologies, as well as having extensive experience in network installation, which help them gain ISP trust. Operators who also offer civil engineering services will draw even greater opportunities since network installations usually go alongside construction. At the same time, SMEs may also gain by sub-contracting the work of larger companies.

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