Thailand Telecoms Industry Report - 2023-2030

Samples

Executive Summary

Thailand Telecoms Industry Report at a Glance

Thailand Telecom Market Set for Steady Growth Amid Competitive Pressures

The publisher provides an in-depth analysis of Thailand’s telecommunications market over the next decade. The research examines the overall market outlook, trends in mobile and fixed broadband services, infrastructure investments, and opportunities and challenges facing operators.

Moderate Overall Market Expansion Expected

The report forecasts the total Thailand telecom market to grow at an average annual rate of 1.5% from 2023-2030. Growth is expected to remain steady but modest in a maturing market facing competitive and political pressures.

Key drivers include ongoing mobile data monetization, 5G network launches, and increased fixed broadband adoption. But revenue growth is hampered by declining legacy services and market saturation.

Mobile Market Approaching Maturity

Thailand’s mobile market will continue expanding over the next decade but at a slower pace. The report projects mobile subscriptions to increase from 101 million in 2022 representing 0.9% compound annual growth.

The consumer shift to 4G/5G and smartphones will persist. But intensifying competition and market maturity will limit subscription and revenue growth. Postpaid plans are rising as a share of the subscriber base.

Large Opportunity in Fixed Broadband

Thailand’s fixed broadband market has growth potential, with household penetration at just 50% in 2022. Fibre network investments by operators are driving increases in high-speed subscriptions.

The report forecasts fixed broadband subscribers to rise at 3.8% annually through 2030. Expanding fibre coupled with demand for faster speeds will underpin growth.

Towers Market Consolidating as 5G Rolls Out

Independent tower firms own 56% of Thailand’s mobile towers as of 2022. Tower revenue is projected to grow through 2030, but revenue per tower may decline as 5G drives a shift toward smaller towers and telco mergers lead to rationalisation. The top players are consolidating - for example, True merging with DTAC in 2022.

Competitive Intensity Creates Challenges

The report notes that competitive and political pressures limit Thailand’s growth potential relative to other Asian telecom markets. The crowded mobile market and shift from legacy services also hamper revenue expansion.

But steady development is still expected over the next decade, benefiting from ongoing investments in new networks to enable emerging technologies like 5G and fibre broadband.

Thematics - Telecoms Infrastructure/5G/M&A/Infrastructure

Infrastructure funds, pension funds and government funds are assigning high valuation multiples to telecommunications infrastructure assets such as mobile towers, data centres, submarine cable and fibre infrastructure.

This report outlines some real market examples of how investors view and value these investments with real industry examples and EV/EBITDA comparatives and benchmarks.

However, in the medium term, the telco sector is likely to digest the two mega-mergers of DTAC and True Corp as well as AIs acquiring Jamsine. Despite, the government merging TOT and CAT Telecom into NT, it is unlikely to drive competition in the marketplace. The publisher projects strong earnings growth despite the required 5G and fibre to the home investments by the telecommunications operators and a new wave of M&A, network sharing deals over the next two to three 3 years.

The arrival of 4G moved the Internet off our desktops into our palms and pockets, 5G is transforming the network from something we carry around to something taking us around either virtually (augmented reality or virtual reality) or in reality (autonomous vehicles), the 5G outcome and benefits beyond fast connectivity remain largely unknown in terms of business models, investments required and timeline.

Companies Mentioned

• 3BB
• Advanced Info Service (AIS)
• CAT Telecom
• CS Loxinfo
• DTAC
• DTIF
• JASIF
• Jasmine
• NBTC
• NT (National Telecom)
• Symphony
• Telephone Organization of Thailand Corp (TOT)
• Triple T
• True Corporation
• TrueMove
• TrueOnline

Methodology

The publisher uses primary and secondary research as well as proprietary information sources to generate market analysis and forecasts for fixed and mobile services in terms of both subscribers and revenue. Interviews are conducted with key service providers in the region to determine current and potential market sizing as well as future service offerings. Information gathered through interviews is further cross-checked to validate the total market size.

The primary research is supplemented with a range of secondary source material, including related research, press releases, securities filings, media, Web-based materials, and trade publications.

Industry and population statistics are also leveraged for reference and to ensure consistency in the data collection. Extensive service provider primary and secondary research, together with the publisher's end-user research database, provides a strong basis for sizing and forecasting the market. The multiple reference points allow for validation of information provided by the service providers compared with that gathered from alternative sources.

Note: Forecasts are made in local currency, and no allowance is made for inflation. All numbers in this document may not be exact due to rounding.