Live Issue... Ongoing turmoil in Thailand stalls arrival of 3G

In 2001, the Thai Government was one of the first in Asia to announce a 3G roll-out. There is little to show for it. Thailand is one of the last Asian countries actually to adopt 3G - even trailing poorer neighbours Cambodia and Laos.

Thailand seems an ideal candidate for the technology, with a mature 2G market and more than 56 million mobile users, according to Wireless Intelligence. This figure is nearly 90 per cent of the Thai population, among the highest percentiles of mobile usage in Asia.

Yet the nation’s tumultuous political scene has made it difficult for operators to plan. The National Telecommunications Commission took until early 2008 to grant 3G permits to Thailand’s three major mobile operators - Advanced Info Service (AIS), Total Access Communication Public Company (DTAC) and True Move.

AIS recently announced delays in its 3G commercial launch following limited trials in Thailand’s major cities, citing the need to tighten purse strings during the economic crunch. DTAC, meanwhile, has postponed its launch from the first quarter of 2009 until after next year’s second quarter.

A launch next year could lead to a major marketing battle. According to Jeff Premer, director of corporate development for infrastructure firm IP Networks, a 3G launch will be paired with inexpensive pricing plans for subscribers and handset-swap programmes to help Thai users affordably switch to 3G-compatible phones. These will help usher in change for other operators, he adds.

For brands, 3G has proved a disappointment in many markets, with results rarely living up to the hype. However, what could make the difference in Thailand is that PC-based web access is limited. According to GlobalComms, roughly 2.5 per cent of Thai households have broadband, leaving most reliant on dial-up. The opening of a high-speed digital avenue would allow advertisers to penetrate the market like never before.

“When 3G finally rolls out, it will easily enhance people’s lives and open their lifestyles,” says Premer. “When you look at Thailand you want to compare it more with Hong Kong, or even Hong Kong without broadband penetration. That’s enormous to think about.”

Over the years, mobile marketing has been limited to SMS and MMS messages and Bluetooth. With the implementation of 3G, says Premer, the possibilities are “too exciting”.

The real change, says Rawewan Sinehasarn, general manager of ZenthithOptimedia in Thailand, will be the ability to deliver content over high-speed connections for the first time. “In my opinion, the 3G technology itself is not as important as the content and applications that will be launched. This will be the new contact channel that provides the opportunity to connect and bond target consumers with brands via the content.”

Seven years on from the first promise of 3G, Thailand remains a market eager to take its next step.