A MODIFIED MODEL OF ICT DEVELOPMENT INDEX (IDI) FOR THAILAND TO ACHIEVE THE ICT LEADER IN ASEAN

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International Journal of Advanced Research in Engineering and Technology
(IJARET)
Volume 6, Issue 12, Dec 2015, pp. 39-48, Article ID: IJARET_06_12_005
Available online at
http://www.iaeme.com/IJARET/issues.asp?JType=IJARET&VType=6&IType=12
ISSN Print: 0976-6480 and ISSN Online: 0976-6499
© IAEME Publication
___________________________________________________________________________
A MODIFIED MODEL OF ICT
DEVELOPMENT INDEX (IDI) FOR
THAILAND TO ACHIEVE THE ICT
LEADER IN ASEAN
Settapong Malisuwan, Dithdanai Milindavanij, Jesada Sivaraks, Noppadol
Tiamnara
National Broadcasting and Telecommunications Commission (NBTC),
Bangkok, Thailand
ABSTRACT
After the first allocation of spectrum in the 2.1 GHz band was successfully
made in 2012, Thailand’s ICT technology has developed continuously,
considered at the higher level compared with those of other ASEAN countries.
In relation to this, the ITU has revealed the annual survey results regarding
ICT-society indices or “Measuring the Information Society Report (MIS
Report)” which is published annually. In this year, the ITU MIS report 2015
identified Thailand as one of a group of "most dynamic countries" that
recorded above-average improvements in their IDI ranking over the past five
years, supported mainly by improvement in mobile broadband penetration.
The objective of this paper is to propose a modified model of ICT
Development Index (IDI) to bring Thailand to be the ICT leader in ASEAN.
This paper also presents a policy and strategic plan to foster Thailand’s ICT
sector to move forward to higher level of ICT Development Index in achieving
the first rank of IDI level in ASEAN within 2020.
Keyword Head: Model, ICT, IDI, ASEAN, Thailand
Cite this Article: Settapong Malisuwan, Dithdanai Milindavanij, Jesada
Sivaraks, Noppadol Tiamnara, A Modified Model of ICT Development Index
(IDI) For Thailand To Achieve The ICT Leader In Asean. International
Journal of Advanced Research in Engineering and Technology, 6(12), 2015,
pp. 39-48.
http://www.iaeme.com/IJARET/issues.asp?JType=IJARET&VType=6&IType=12
1. INTRODUCTION
The telecommunications market in Thailand is at a successful transformation: despite
an initial delay, the commercial launch of 3G mobile networks saw a substantial

Settapong Malisuwan, Dithdanai Milindavanij, Jesada Sivaraks, Noppadol Tiamnara
increase in the use of mobile broadband services. After the first allocation of spectrum
in the 2.1 GHz band was successfully made, Thailand has experienced significant
progresses in the telecommunications industry, especially positive effects on the
overall economic benefits. The opening up of 3G/ 4G services on the 2.1 GHz
spectrum by the licensed operators as well as the widespread use of mobile devices
like smartphones and tablet computers facilitate users in gaining convenient access to
the Internet without limitations in time and locations, generate the wave of consumers
requiring round-the-clock Internet access; online social networks in particular, bring
about changes in consumer behaviors [1].
The auction of 2.1 GHz spectrum contributes to the overall investment worth 60-
70 thousand million baht per year in telecommunications network devices such as in
the core network and cable lines during the first 3-5 years after the auction has been
conducted. This is because the licensed operators need to rush the expansion of
network coverage to be more extensive. This includes the expansion and improvement
of network quality and stability which will promote further growth in
telecommunications markets due to the commercial utilization of the 3G/4G networks
where mobile phone operators have made more investments on the networks. This is
considered the stimulation of the overall economic system through the operators’
various investment funds: in telecommunications infrastructures, network
construction and development, installation of network devices or network system
planning, etc.
Due to the continuously decreasing trend of communication devices price levels,
the populations can gain easier access to the Internet resulting in greater expansion of
communication device markets and rapid increasingly widespread use of smartphones
and smart devices. It is found that the mobile phone market in Thailand has grown up
to 132 percent or around 90 million devices sold; exceeding the population of
Thailand. There is an increasing trend of one user owning more than one smart
device, and the smartphone market value in 2014 is expected to grow further by 30
percent compared with that before the 3G auction was conducted in 2012. This
affected the country’s rate of smartphone utilization to rise up to 45 percent in 2014 or
to be valued around 6 ten thousand million baht. Furthermore, it is found that 66
percent of mobile phones in the market are capable of supporting 3G/4G technology
[1], [2].
The aims of this paper is to propose a modified model of ICT Development Index
(IDI) to bring Thailand to be the ICT leader in ASEAN. This paper also presents
supportive regulatory policy and strategic plan to foster the ICT sector to move
forward Thailand to higher level of ICT Development Index in achieving the first
rank of IDI level in ASEAN within 2020.
To achieve the objective of the research, this paper organized the content as
follows. Section 2 discusses the 4G 1800MHz spectrum auction results and provides
positive impacts of the license. Section 3 presents a conceptual framework of ICT
Development Index and also discusses the status of Thailand’s IDI. In Section 4, we
propose our model by applying the ICT Development Index; indicators, reference
values and weights in Section 3, to construct the modified model of IDI to maximize
ICT impact (outcomes) for bringing Thailand to the ICT leader in ASEAN.
Supportive policy and project initiatives to serve the proposed model are presented in
this section. The conclusion is the last section

A Modified Model of ICT Development Index (IDI) For Thailand To Achieve The ICT
Leader In Asean
2. IMPACTS OF 4G 1800MHZ LICENSING
In the 4G 1800MHz auction process, the National Broadcasting and
Telecommunications Commission (NBTC) announced the winners. Advanced
Wireless Network Co Ltd and True Move H Universal Communication Co Ltd won
the two 4G licences that ended on November 12, 2015. Total receipts for the Thai
government were 80.778 billion Thai Baht (USD 2.25 billion.). True Move H
Universal Communication Co Ltd, a subsidiary of True Corporation, won the first
licence at 39.792 billion baht. Advanced Wireless Network Co Ltd, a unit of
Advanced Info Service (AIS), offered 40.986 billion baht for the second licence. The
prices were 150% above the reserve price for the first licence and 158% for the
second licence. In terms of estimated real spectrum value, the first licence was 200%
higher while the second was 206% more [3].
Basically, benefits for the economy and the society will be more influenced after
the auction, as operators will have to invest in network infrastructure in order to serve
consumers. Based on the NBTC studies, the investments will amount to more than
500 billion baht within 5 years after the auction and will create additional jobs in
engineering and IT. In the long term, network investment will transform Thailand's
telecom supply chain landscape [4]. The roll-out of new 4G broadband infrastructure
(including mobile broadband) is expected to create a positive impact on the jobs
market in Thailand by creating new skilled jobs. This will contribute positive changes
in the general population and the workforce in Thailand by developing abilities and
skills to use new infrastructure and the latest emerging technologies.
A study by the NBTC's telecom committee showed that 4G will generate 119
billion baht in telecom business by 2020, another 114 billion for the macro economy,
284 billion in the capital market and financial investments, 50.6 billion in 4G use and
109 billion in mobile transactions.
The 4G network deployment will generate 18.2 billion baht for the entertainment
sector, 37.4 billion for education, 5 billion for social welfare activities and 111 billion
for the public health sector. It will also help generate electronic waste-related
businesses worth 76 million baht [3].
The number of 4G subscribers on the 1800-MHz spectrum alone is expected to
reach 20 million in 2016. The number of mobile subscriptions will top 170 million in
2016, up from 100 million this year. The big trends in 4G mobile applications next
year will be video streaming, social commerce, mobile games, mobile advertising, big
data, cloud services and machine-to-machine communication or the Internet of Things
(IoT).
NBTC expects that the rapid roll-out of 4G infrastructure will accelerate the
progress of the ICT development. Moreover, Internet of Thing (IoT) is expected to
significantly impact almost every social and economic sector, including education,
healthcare, agriculture, transportation and manufacturing within 5 years [5]. Most of
the value derived from IoT comes from the generation, processing and analysis of
new data. This will generate a huge use of ICT infrastructure in the near future in
Thailand.
3. ICT DEVELOPMENT INDEX (IDI)
The ICT Development Index (IDI) is a composite index that combines 11 indicators
into one benchmark measure that can be used to monitor and compare developments

in information and communication technology (ICT) between countries and over time
[5].
Advancing through ICT development depends on a combination of three factors:
the availability of ICT infrastructure and access, a high level of ICT use, and the
capability to use ICTs effectively, derived from relevant skills. These three
dimensions – ICT access, ICT use and ICT skills – therefore form the framework for
the IDI as shown in Fig. 1. [5]
Figure 1 Three stages in the evolution towards an information society
Based on the conceptual framework in Figure 1, the IDI is divided into the
following three sub-indices, which are illustrated, together with their component
indicators, in Table 1.
 Access sub-index: This sub-index captures ICT readiness, and includes five
infrastructure and access indicators (fixed telephone subscriptions, mobile-cellular
telephone subscriptions, international Internet bandwidth per Internet user,
households with a computer, and households with Internet access).
 Use sub-index: This sub-index captures ICT intensity, and includes three intensity
and usage indicators (individuals using the Internet, fixed broadband subscriptions,
and mobile-broadband subscriptions).
 Skills sub-index: This sub-index seeks to capture capabilities or skills which are
important for ICTs. It includes three proxy indicators (adult literacy, gross secondary
enrolment, and gross tertiary enrolment).
ICT Readiness
(Infrastructure,
Access)
ICT Use
(Intensity)
ICT Capability
(Skills)
ICT Impact
(Outcomes)
ICT
Development
Index
Source: ITU [5]

Leader In Asean
Table 1: ICT Development Index: indicators, reference values and weights [5]
Basically, having mobile broadband service at affordable prices for the mass
market will be a major factor in narrowing the digital divide and lifting the country's
competitiveness. Based on the Measuring the Information Society Report 2015 (MIS
report 2015), Thailand is ranked 74th out of 167 countries this year, up from 81st last
year, according to the National Broadcasting and Telecommunications Commission
(NBTC).
NBTC strongly believes the IDI ranking for Thailand will improve to 60th by
2017, based on the fact that the 3G and 4G mobile networks roll-out resulted in a
significant improvement in the ranking, to 81st in 2014 from 92nd in 2010. The target
of the NBTC is that Thailand's IDI ranking will be No.1 in ASEAN by 2020. The ITU
MIS report 2015 identified Thailand as one of a group of "most dynamic countries"
that recorded above- average improvements in their IDI ranking over the past five
years. This means that Thailand was the most dynamic country in Asia-Pacific,
showing the greatest change in IDI ranking in the region, supported mainly by
improvement in wireless broadband penetration. The IDI not only reflected
development of a country's infrastructure and ICT use but also represented a major
factor attracting investment from international businesses including more global
technology companies. In the next year, the NBTC expects massive migration to 4G
networks by 3G users next year amid intense competition among the operators of the
4G LTE1800MHz.
4. A PROPOSED MODEL: A MODIFIED MODEL OF IDI FOR
THAILAND’S ICT ENVIRONMENT
To achieve the objective of this research, we apply the ICT Development Index;
indicators, reference values and weights in Section III, to construct the modified
ICT access
Reference
value
(%) Weight
1. Fixed-telephone subscriptions per 100 inhabitants
2. Mobile-cellular telephone subscriptions per 100
inhabitants
3. International Internet bandwith (bit/s) per internet
user
4. Percentage of households with a computer
5.Percentage of households with Internet access
60
120
962’216*
100
100
20
20
20
20
20
40%
ICT use
Reference
value
(%) Weight
6. Percentage of Individuals using the Internet
7. Fixed-broadband subscriptions per 100 inhabitants
8. Active mobile-broadband subscriptions per 100
inhabitants
100
60
100
33
33
33
40%
ICT skills
Reference
value
(%) Weight
9. Adult literacy rate
10. Secondary gross enrolment ratio
11. Tertiary gross enrolment ratio
100
100
100
33
33
33
20%

model of IDI to maximize ICT impact (outcomes) for bringing Thailand to the ICT
leader in ASEAN. Supportive policy and project initiatives are presented as
following:
ICT access (A)
1. Fixed-telephone subscriptions per 100 inhabitants (A1)
 Accelerate USO projects for fixed-telephone installation in rural area.
2. Mobile-cellular telephone subscriptions per 100 inhabitants (A2)
 Award available spectrum in the 900MHz and 1800MHz bands to expand 3G
and 4G mobile services.
 Plan to make the globally harmonized 700MHz ‘Digital Dividend’ band
available to ensure good value mobile broadband services - providing good
coverage in rural areas, inside buildings, and households.
 Any spectrum that becomes available for 4G in future – such as in the
2.3GHz, 2.6GHz or other bands – should be assigned using an appropriate,
market-based process to award spectrum licences, in line with international
best practice.
 Ensure the costs of rolling out new technologies are managed in the most
efficient way
 Voluntary infrastructure sharing for potentially providing benefits such as
better availability of services through further roll-out into less populated
areas.
3. International Internet bandwith (bit/s) per internet user (A3)
 Ensuring a level-playing field with state-owned companies in international
internet gateway by promoting more private companies in the international
gateway market.
4. Percentage of households with a computer (including tablets and similar handheld
devices) (A4)
 Fund for affordable computer projects for low income citizens.
5. Percentage of households with Internet access (A5)
 Fund a competition for ISPs to attract new subscribers in low-income
communities.
 Telecommunications policy has to aim at promoting competition in Internet
gateway markets
ICT use (B)
6. Percentage of Individuals using the Internet (B1)
 Transform access to financial services. It enables people to execute e-
payment transactions and is expanding to offer person-to-person payment for
unbanked customers.
 Develop applications to specific sectors in the Thai market e.g. Farmer
Information superhighway, Smart transportation, Smart city, Smart mobile
SME.
 Government services digitization and establishment of e-government
7. Fixed-broadband subscriptions per 100 inhabitants (B2)

Leader In Asean
 Accelerate USO projects for fixed-broadband installation in rural area.
 Voluntary infrastructure sharing for potentially providing benefits such as
better availability of services through further roll-out into less populated
areas.
8. Active mobile-broadband subscriptions per 100 inhabitants (B3)
 Policies targeted at improving 3G/4G infrastructure use in rural areas by
expanding 900MHz coverage.
 Plan for 700MHz licensing as a broadband coverage in rural areas as soon as
possible.
ICT skills (C)
 Improve ICT abilities and skills of the population/workforce through building
of new mobile networks and related mobile services development
opportunities. (C1)
 Policies to enhance digital literacy. (C2)
 Policies to initiate SME in mobile economy platform and develop of local
content (i.e. to encourage how to produce content and applications)(C3)
Source: ITU [5]
Figure 2 Thailand’s Spider Chart of IDI ratings [5]
To determine the weighting on each sub-index, we analyzed the weakness points
of ICT development in Thailand from the Spider Chart in the MIS Report 2015 as
shown in Figure 2 [5]. Based on the Spider Chart in Fig. 2, we found that there are 5
out of 11 weak indicators. That means that if we can improve these weak indicators
which are fixed-broadband subscriptions, Internet users, households with Internet,

households with computer, and fixed-telephone subscriptions, Thailand will have a
chance to improve the IDI value. This will lead to improve the IDI Ranking.
Therefore; in this research, we prioritized the focused indicators as following:
1. households with computer
2. households with Internet
3. Internet users
4. fixed-broadband subscriptions
5. fixed-telephone subscriptions
Figure 3 shows the proposed model of this research to improve Thailand’s IDI
value. The weight of essential indicators were analyzed and identified based on the
weakness of each indicator in the Spider Chart in the Fig. 2 which is shown in Table
2. This study also suggested that the NBTC should establish a team to work on
assessment, evaluation, and feedback processes. In every 6 months, the assessment
and Evaluation & Feedback team will give suggestions to NBTC to adjust any values
or policy to maximize the impact (outcomes).
Figure 3 The proposed model (the modified model of IDI)

Leader In Asean
Table 2 The weight of essential indicators
To achieve No. 2 in 2017 and No. 1 in 2020 for IDI Ranking in the ASEAN
countries, Thailand needs to accelerate ICT development against Malaysia and
Singapore. Fig 4 illustrates IDI values, Asia and the Pacific, 2015 and the positions
that Thailand needs to achieve to be the ICT leader in ASEAN.
Figure 4 IDI values, Asia and the Pacific, 2015
Indicator Component Weight
Fixed-telephone subscriptions per 100 inhabitants A1 25%
Mobile-cellular telephone subscriptions per 100
inhabitants
A2 5%
International Internet bandwith (bit/s) per internet
user
A3 20%
Percentage of households with a computer (including
tablets and similar handheld devices)
A4 25%
Percentage of households with Internet access A5 25%
Percentage of Individuals using the Internet B1 50%
Fixed-broadband subscriptions per 100 inhabitants B2 40%
Active mobile-broadband subscriptions per 100
inhabitants
B3 10%
Improve ICT abilities and skills of the
population/workforce through building of new
mobile networks and related mobile services
development opportunities
C1 40%
Policies to enhance digital literacy C2 20%
Policies to initiate SME in mobile economy platform
and develop of local content (i.e. to encourage how to
produce content and applications)
C3 40%

5. CONCLUSIONS
After the first allocation of spectrum in the 2.1 GHz band in 2012 was successfully
made, Thailand has experienced significant progresses in ICT development,
especially positive effects on the overall economic benefits. The ITU MIS report 2015
identified that Thailand is one of the most dynamic countries in IDI ranking over the
past five years, supported mainly by improvement in mobile broadband penetration.
The next wave of 4G 1800MHz rolling out in Thailand will foster growth in the
access and use of ICTs, which should in turn have a positive impact on short and
long-term social and economic development. Thailand recognizes the great potential
of ICTs and focuses on stepping forward to achieve the ICT leader in ASEAN. This
paper proposes a model and presents supportive regulatory policy and strategic plan to
foster Thailand’s ICT sector to move forward to higher level of ICT Development in
achieving the first rank of IDI level in ASEAN within 2020.
REFERENCES
[1] Faculty of Economic, Chiangmai University, NBTC research project, March
2015 “A Study on the evaluation of Impacts on Socio-economic Benefits in
Mobile Broadband Services”
[2] Faculty of Economic, UTCC, University of the Thai Chamber of Commerce
“Impact of Socio-economic and Telecommunications Business in the 2.1
GHz Spectrum Licensing” 15 September 2013
[3] Settapong Malisuwan and Wassana Kaewphanuekrungsi, “A Review of
Spectrum Auction in 4G LTE 1800 MHz: The First Transition of
Telecommunications Industry from Concessions to Licensing Regime in
Thailand,”International Journal of Advanced Research in Management
(IJARM) Volume 6, Issue 3, pp. 143-151, Sep-Dec (2015).
[4] NBTC Internal Report, November, 2015. Impact on 1800MHz spectrum
Auction,
[5] International Telecommunication Union (ITU), Geneva, Switzerland, 2015
Measuring the Information Society Report 2015.
[6] Chandrashekhar R. Suryawanshi, an Importance of ICT on Improvement in
Quality of Education. International Journal of Management, 4(6), 2013, pp.
213 - 216.
[7] Settapong Malisuwan and Wassana Kaewphanuekrungsi, Analysis of Mobile
Telecommunications Market in Thailand. International Journal of
Management, 6(12), 2015, pp. 1 - 10.
[8] Settapong Malisuwan, Noppadol Tiamnara and Dithdanai Milindavanij, THE
Impact of Spectrum Assignment on Economic Growth and Competitiveness
in Thailand. International Journal of Management, 6(12), 2015, pp. 11 - 21.

A MODIFIED MODEL OF ICT DEVELOPMENT INDEX (IDI) FOR THAILAND TO ACHIEVE THE ICT LEADER IN ASEAN

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A MODIFIED MODEL OF ICT DEVELOPMENT INDEX (IDI) FOR THAILAND TO ACHIEVE THE ICT LEADER IN ASEAN