Telecommunications play an important role in modern economies, and developments in telecommunications networks have reflected the adoption of digital technologies throughout those economies.

A new Telenor Group-commissioned report outlines the impact of telecommunications on Thailand and Asia.

According to the study, called “The Mobile Effect: How Connectivity Enables Growth”, telecommunications is at the core of modern economies. Sectors that are intensive users of telecommunications generally contribute a greater proportion of gross value added (GVA) to those economies, and connectivity contributes to and enables social goods.

“Our study quantified these impacts across the Asian countries where Telenor is active – Bangladesh, Pakistan, Myanmar, Malaysia and Thailand,” said James Allan, the director of Frontier Economics, which conducted the study.

The report found that sectors driven by telecommunications contributed almost three-quarters of the economic growth in markets across Telenor’s Asia footprint.

Telecommunications provided direct benefits, social benefits and indirect benefits.

The sector’s direct contribution to the economy typically increases with that economy’s maturity. The contribution of telcos to Thailand’s growth is close to that of Malaysia and the OECD, at an average of 1.5 per cent.

Also, telecommunications is an enabler of economic growth. The economic contribution of telecom-intensive sectors in Telenor’s Asia footprint is between 65 and 75 per cent of GVA. In countries with substantial economic growth, the total GVA from telecommunications intensive sectors grew between 6 and 12 per cent per year from 2005 to 2015.

For example, in both Thailand and Pakistan the GVA contribution of telecommunications intensive sectors almost doubled from around US$350-$400 billion (Bt11.1–Bt12.6 trillion) in 2005 to almost $700 billion (Bt22.2 trillion) in 2015.

The GVA of telecommunications intensive sectors has also grown rapidly on a per-capita basis, increasing at approximately 4 to 11 per cent per annum from 2005 to 2015. In this case, Malaysia and Thailand were the two standout countries, where per capita GVA is between 2 and 5 times higher than in other countries. This is likely due to the more developed nature of the two economies, which translates into higher levels of economic growth and productive efficiency.

Telecommunications technology and the internet, in particular, have changed the ways in which people live, work and interact with others and their environment. Access to telecommunications services has created substantial economic benefits for users and society.

Telecom services can also help promote social benefits, including in healthcare, social inclusion, financial inclusion and agricultural productivity.

Telecommunications have enabled the use of digital communication technologies to deliver medical care, health education, public health services and health insurance at a distance.

Telecommunications have facilitated enhanced social participation, especially for people with various disabilities. Mobile technologies play a significant role in improving social inclusion. In Pakistan, for example, mobile apps encouraging social inclusion for the disabled include the “Tell Me” voice-guided app that helps visually impaired people navigate their surroundings, and the “Roll Out” app, which shares restaurants and hotels that cater to mentally and physically challenged people.

Telecommunications have enhanced access to basic financial services, particularly facilitating the collection of financial documents, the acceptance and disbursal of cash, the monitoring of loans, receipting and sending of remittances.

The most substantial impact has been seen in Bangladesh and Thailand where from 2014 to 2017, the percentage of people who made or received digital payments grew from 7 per cent to 34 per cent and from 33 per cent to 62 per cent respectively, and the percentage of people who held a mobile wallet grew from 3 per cent to 21 per cent and from 1 per cent to 8 per cent respectively.

That use of digital payments and mobile wallet accounts by people living in rural areas is comparable to the overall population in each country. Mobile financial services are helping to reduce the financial inclusion divide between urban and rural populations.

Moreover, telecommunications help to improve productivity, profitability, food security and employment in the agricultural sector.

The usage of telecommunications in agriculture helps in achieving such goals as spreading agricultural best practices, disaster management and early warning, enhanced market access, food safety and traceability, financial inclusion and implementing regulations.

Hakon Bruaset Kjol, the Telenor Group’s senior vice president of partner and external relations for Asia, said that due to its presence in Asia for more than 20 years, Telenor has connected 166 million people and brought $4.3 billion in economic value to its Asian markets in 2017. Meeting these connectivity demands requires significant investment, especially in networks, from the telecommunications players across Asia.

From 2014 to 2017, Telenor invested $6.2 billion in its five Asian markets, making the company one of the top three foreign investors.

In Thailand, Telenor has played an important role in using mobile technology to equip farmers with the tools they need to face challenges such as climate change, plant disease and soil moisture, Kjol noted.

In October 2018, Telenor’s DTAC arm launched its new “Farm Man Yum” service, a precision farming app that analyses various data sets from involved farms to resolve issues in a timely manner.

The service was designed to meet the needs of farmers who were reliant on precise weather forecasts to manage and plan their cultivation, increase yields and cut costs. The service incorporates personalised weather forecasts, which show area-specific data on an hourly basis including temperature, the likelihood of rainfall and the amount of rainfall.

It can also provide a seven-day forecast with the highest plot-specific precision available in Thailand. With the help of satellite imagery, the feature helps farmers to views aerial shots of their plots to locate irregularities and unhealthy plants. Finally, a Personal Assistant Service helps farmers understand and efficiently plan cultivation in each crop year with easy-to-understand infographics based on academic data from Kasetsart University’s Faculty of Agriculture lecturers.

Alexandra Reich, the chief executive officer of DTAC, said that innovation and investment by mobile network operators have contributed considerably to the social and economic growth of Asia and Thailand.

The mobile ecosystem, led by operators, will continue to address the barriers that prevent underserved people from gaining access to the mobile internet, especially women and low income people, as well as rural and youth communities. In the 5G era, mobile technology development will continue to have a profound and transformative impact on the world, said Reich.

Mobile connectivity has had a profound impact on society, chalking up many benefits in health, productivity and education.

Data-hungry consumers

“From the perspective of the telecom industry, what an incredible market to be in!” said Reich. “Thais consume a lot of data, more than many European countries in fact.

“I haven’t been here for a full year yet, and I’m still very much in the honeymoon period. I just love Thai people, their sense of family, their respect, their appreciation for the good life.” Thailand ranks in the Top 10 countries for usage on several social media platforms, including Youtube. Thais are also very demanding and knowledgeable about their mobile connectivity, she said.

“A lot of people here actually know what ‘spectrum’ is. I can tell you that in Europe, very few people care about or understand some of the things Thai consumers know very well,” said Reich.

Not only are Thais heavy and demanding users, they are also creative users, she said. When Instagram and Facebook launched in Thailand, entrepreneurial Thais immediately took these platforms and transformed them into e-commerce platforms. Shopping on Instagram was a thing in Thailand long before Instagram added shopping to its features. In fact, Thailand is where key new features in Facebook are often first tested out before being rolled out to other markets.

The DTAC NET Arsa programme has trained one million low-income earners on how to use social media accounts to generate new sources of income from their products. And its Farmer Info app has reached 120,000 smallholders, putting high-resolution images of their farms and hyper-local weather forecasts in the palm of their hand.

Mobile network operators have been a driving force behind the innovation and investment needed for these opportunities.

The company has contributed considerably to the social and economic growth of Asia and Thailand, said Reich.

“Today, we are once again at the centre of a technological leap forward. Thailand can greatly benefit from 5G’s mobile technologies. But 5G will not be built like previous mobile technologies. Our role as a telco will be to coordinate the various industry players needed to build viable use cases for 5G, which have yet to materialise as of now,” said Reich.

It is therefore an important time to take a full measure of why connectivity matters and what it can do for society, she said.

NBTC secretary-general Takorn Tantasith said yesterday that the NBTC had already finished the final draft.

Each slot will feature a 10MHz bandwidth.

The licence term will be 15 years and the licence payment can be divided into 10 instalments.

The NBTC had earlier planned to sell the slots with each totalling 15MHz bandwidth.

Telecom operators who win the licences will start paying for the slots next October.

The slots will be put on sale on June 19 and proceeds from the sales will be used to compensate the six digital TV broadcasters who last week informed the NBTC their intention to return their broadcasting licences.

The NBTC will hold a public hearing on the draft of the regulation of the 700MHz allocation on May 22.

The NBTC wants the telecom operators to provide 5G wireless broadband service on the 700MHz band.

The sales of these three slots is related to the junta’s launch of the relief measures last month to ease the financial burden of the three 900MHz telecom operators.

Under the relief measures, the NBTC will split the total upfront licence fee for the 900MHz spectrum of the three licence holders into 10 instalments, giving them more time to make payments from the current four instalments.

However, the junta’s relief measures include a condition that makes it mandatory for any of 900MHz licence holders availing the relief measures to purchase the NBTC’s 700MHz spectrum slots, which will be up for sale on June 19.

See terms and conditions

The licence holders can inform the NBTC that they want to avail of the junta’s relief measures but can later opt not to buy the 700MHz licence slots.

However, they would lose the longer instalment facility if they do not buy the slots and would have to pay as per the original payment schedule.

All the three operators have informed the NBTC their interest to avail of the junta’s relief measures, but they want to see the terms and conditions of the 700MHz licence sales first before making a final decision on whether to purchase the 700MHz licences.

The NBTC has a total of 45MHz of the 700MHz bandwidth. After selling the 30MHz, it is expected to auction the remaining 15MHz next April.

The NBTC will also auction the 2600MHz band, the 26GHz and 28GHz bands in October this year, and the remaining 35MHz bandwidth of 1800MHz band totalling seven slots next April.

The market for digital signage is rapidly expanding. With the spread of high-speed internet and a reduction in installation costs, the electronic devices can be set up at various places consumers can easily spot.

Digital signage is also expected to provide information on tourism and disaster prevention.

In March, Panasonic Corp. and affiliated firms of Tokyo Electric Power Company Holdings, Inc. set up 49-inch digital signage screens above electricity transformer boxes on the streets near JR Omiya Station in Saitama. The devices run video clips about local tourism spots and emergency evacuation places. The companies are conducting a test together with the Land, Infrastructure, Transport and Tourism Ministry and the Saitama municipal government, using cameras installed on the devices to find out how passersby respond to different types of information.

As more utility poles are removed to install electric wires underground, electricity transformers are often set up on sidewalks. Currently, it is prohibited to place advertisements on transformers, but the ministry will look into whether the regulation should be relaxed nationwide based on the findings of the test.

Digital signage has long been used for large screens in baseball stadiums and billboards on buildings. In recent years, it has come to be used in a wider variety of places, such as trains, shops and taxis. Behind the expansion lies the availability of thin high-resolution screens, falling prices of related equipment and technical improvements including spread of high-speed internet. Allowing such devices on transformers would further increase places to install them.

Digital signage is increasingly used for providing information on tourism and disaster prevention, because it can handle a large amount of data. The Tokyo metropolitan government, for example, plans to install about 150 digital signage devices to provide such information in fiscal 2019, in the run-up to next year’s Tokyo Olympics and Paralympics.

Capitalizing on this demand, NEC Corp. developed an advanced streetlight in 2018. In addition to illumination, the device can also provide disaster information in English and Chinese such as evacuation guidance based on the amount of traffic at that time. The company aims to install the product around competition venues.

Although initial investment is costly, digital signage enables instant information updates, expected to reduce labor and other costs in the long run. Major home appliance retailer Biccamera Inc. introduced digital price tags on the shelves for all products at its outlet opened in Machida, Tokyo, in February. Price tags can be changed all at once, which “helps reduce working hours” of the outlet’s workers, according to a Biccamera public relations officer.

According to estimates by Fuji Chimera Research Institute Inc., the digital signage market is expected to expand to ¥318.6 billion in 2025, more than double the ¥143.7 billion seen in 2017. “Digital signage, which can run real-time information, will further evolve with the use of artificial intelligence, among other technologies,” said the company’s senior researcher Eigo Yamada.

IBM’s quantum ambassador, Robert Loredo, recently met staff at the National Electronics and Computer Technology Centre (Nectec) to ask what the company could do to help Thailand solve problems through  quantum computing and advise how the Kingdom could benefit from its quantum hub partner in Asia.

Loredo, who was also promoting the IBM Q system and IBM Q Network while on the trip, explained to The Nation Weekend that the quantum computer allows for more collaboration than does the classic computer system. It can computer many things not possible through using the classic computer and is able to get results much faster because of the increased quantum speed.

“In what areas the quantum computer can help is something we are open to,” said Loredo. “Because right now IBM has been working with different partners in different industries such as intelligent offices, chemistry, finance, automation and energy. For example, it announced partnerships with Exxon Mobil, and is also looking for partners in finance and portfolio management, logistics, transportation, sales and engineering.”

The company is now in the quantum-ready phase, he said. “We have three different phases, including the quantum foundation phase, which was generally started back in 1920, that developed quantum mechanics and quantum physics theory. That was kind of a build-up of all the information we needed to produce a quantum computer,” said Loredo.

He said  IBM released its first quantum computer in May 2016, created on the cloud and available to everyone for free. With that it kicked off the era called “quantum ready” and released a 5 qubits (pronounced CUE-bit) system and a 16 qubits system that everyone can have access to on the cloud.

“Whatever you can do there is [based on] understanding the quantum principle that we use that is a part of quantum computing – how to use them to come up with either an algorithm or any other kinds of features and problems they want to solve,” said Loredo.

The two main features that it uses from quantum mechanic principles are “super procession” and “entanglement”. Super procession refers to the variation from the basic stage of physical classic computers that has a 0 and a 1. In quantum computer, it the stages are 0, 1, and a combination of both. So, it has the ability to calculate a lot more things and faster.

The second quantum mechanical principle of entanglement refers to the use of multiple qubits; two or more qubits entangle to share a combination of information.

“When you calculate one piece you take a measurement, you can use information in other qubits to calculate a lot of things,” said Loredo.

Those two main features of quantum computing can be used to advantage in the third phase. The computer is large enough and the algorithm is much more coherent and so is able to run and produce particular solutions that are not possible on the classic computer.

The drivers of mass adoption of quantum computing are found in many areas, such as the needs of logistics and traffic. For example, in Thailand traffic is a big enough concern.

IBM has met with Nectec, to seek the best approach to introducing quantum technology to Thailand. IBM has its Q Network featuring different partners, with one partner, Keio University, serving as the first Q Hub in Asia.

Keio is working with IBM to help organisations explore quantum applications important to business and science, while at the same time introducing the technology to the next generation of scientists.

The university has spent the past several months bringing together members of its team, which include students working alongside scientists with expertise in quantum chemistry, financial modelling, quantum encryption and security, and other areas to determine which algorithms may be most useful.

The students and researchers are also learning how to map their algorithms to qubits on the quantum chip and writing programs that can run efficiently, which reduces the amount of time in which errors can occur while a program is running.

Nectec in Thailand is working directly with Keio University on different research projects. Along with Keio University and IBM Q Network, it is looking at the potential for building a quantum ecosystem  in Thailand that could spread to Singapore, China, Japan and elsewhere.

Startups in focus

“We also are looking for partners who are interested in using quantum computing. One of our key partners is startups. A lot of startups have come with their ideas and projects to work with the IBM Q team on hardware and software to access and use the IBM Q system,” said Loredo.

He invited any startups, universities, or companies to join and partner with the IBM Q Network.

“We are in the early stage of quantum computers; there are so many stages of quantum computing ‘ready’ phases,” he said. “We call it a ‘ready’ phase since we need to prepare a lot things. We need to move to the quantum advantage phase. It is to have a system the can demonstrate and speed up the classic computer or compute something on a quantum machine that cannot be done on a big classic computer. To be able to move from the current phase to the quantum advantage phase is open. There is so much research going on right now that anyone can come in to join.”

Most of the IBM Q Network is at universities, because they obviously want to accelerate the research and to educate people about what quantum computing can do for research and business, said Loredo.

“Universities can understand technology and can teach and present those particular skills to people at any level, including the university level, high school level and post-graduate level.”

However, IBM Q Network is partnering with early adopters, innovative organisations, by offering access to IBM’s quantum computing systems through the cloud.

Only through this exchange of ideas, research and testing will quantum computing reach its full potential, powering breakthroughs that lead to new medicines and materials as well as advanced business and financial models.  Partners include automaker Daimler, which has a broad interest in how quantum computing can impact everything, from the optimisation of transportation logistics, to predictions about future materials for electric mobility, which is based on well-functioning cell chemistry within vehicle batteries.

JP Morgan Chase is researching how quantum computing can improve trading strategies, improve client portfolios and better-analyse financial risk.

The European Laboratory for Particle Physics (CERN) is working with IBM to explore how quantum computing can advance scientific understanding of the universe.

Recently, IBM announced the expansion of the IBM Q Network to include a number of global universities.

The universities intend to partner with IBM to accelerate joint research in quantum computing, and develop curricula to help prepare students for careers across science and business that will be influenced by this next era of computing.

For example, Florida State University, the University of Notre Dame, Virginia Tech, Stony Brook University, and the University of Tokyo will have direct access as academic partners to IBM Q’s quantum computing systems for teaching, and for faculty and student research projects that advance quantum information science and explore early applications.

The move is in order to help leverage the future industrial benefits from artificial intelligence, Big Data, machine learning and blockchain. Potential benefits could abound, for example, in pharmaceuticals, weather forecasting, traffic and marketing.

Sarun Sumriddetchkajorn, a senior researcher at Nectec, said that quantum is a major focus of the centre, particularly through using quantum computing in a complementary way with the classic super computer. That combination is expected to lead the future computing era, he said.

Nectec’s role is to collaborate with research institutes and universities in both education and raising awareness of the impact of quantum computing technology, and also to prepare the human resources needed for this area.

“Currently, there are around 10 researchers across universities deeply studying quantum computing technology. We are working together on how to help the country could benefit from the technology,” said Sarun. Kanin Aungskunsiri, a photonics technology laboratory researcher at Nectec, immersed in studying quantum technology. He said quantum computing could help with processing huge data volumes, something that the classical super computer cannot do quickly. He cited the design of drug formulas, weather forecasting and real traffic forecasting, as areas that would benefit.

Nectec’s related research is mainly concerned with quantum engineering, as it is fundamental for further quantum commercial applications. Currently, Nectec is also working on developing the prototype for quantum cryptography.

He said Nectec is in talks with IBM regarding the context and model of IBM support it needs. The computing giant offers several kinds of support in quantum computing technology, such as hub, partner, member, academic, and startup that allows access to different layers.

Through a partnership with the National Science and Technology Development Agency (NSTDA), Nectec along with IBM Thailand and Mitr Phol are working to transform sugarcane farming into precision farming in order to increase the yields of one of the country’s most economically important crops.

Under that collaboration, Nectec can access and utilise the IBM PAIRS Geoscope, which is a platform specifically designed for massive geospatial-temporal data (maps, satellite imagery, weather, drones, IoT) related to query and analytics services.

PAIRS enables users to tap this vast and valuable source of often underutilised information to complement and contextualise their data, enable or enhance their applications, and develop, test and refine their models.

Recently, Nectec also joined hands with Mahidol University to establish the Collaborative Research Unit on Quantum Information.

Artima Suraphongchai, head of marketing for iflix Thailand, said that the company launched iflix 3.0 in the fourth quarter of 2018 in a bid to improve the business model of freemium with ads and iflix VIP.

The company’s price start with a flat rate of Bt100 a month and reach Bt1,000 a year.

In late 2018, iflix switched from subscription video on demand (SVOD) to the freemium service, to offer iflix streaming that allow users to watch some content for free with advertisements, including pre-roll and mid-roll ads.

Iflix now offers an AVOD model, for ad video on demand.

“This change is a result of feedback we got from users who mostly are familiar with free watching with ads, rather than paying for subscription even when it is only Bt100 per month,” said Artima.

It turned iflix from the subscription model to the freemium model. People who not willing to pay can still enjoy watching content on iflix. But free content is less than 30 per cent of its total content of 40,000 hours.

“It needs time educate users to pay for content with freemium model,” said Artima.

If they do not want to see ads, they just pay for the service with the iflix VIP service, priced at Bt100 a month or Bt1,000 a year.

The company has increased the amount of content, including live TV and live content across categories such as lifestyle, sport and music.

“We need encourage a lot more people to engage with iflix. In the past, iflix had only long-form content, especially two-hour movies and series. Last year, we increased snap content, with different length of content such as 1 minute, 2 minutes, 5 minutes, 10 minutes, and 15 minutes. Now we have a lot of short-form content,” said Artima.

Apart from variety of content lengths, she said, people need content immediately. So, it has increase the news and live content, such as for sports matches and for concerts or events as well. All such moves are aimed at increasing the users’ stickiness with iflix.

iflix serves more than 10 markets in Asia and 12 in the Middle East. For content strategy, Artima said, it does not yet offer original content production in Thailand. But it does so in Indonesia, the Philippines, and Malaysia, where the company has local partners to develop such content, including movie, series and documentaries.

Recently, iflix has been received investments, including from Yoshimoto Kogyo, Japan’s largest entertainment conglomerate.

This is Yoshimoto Kogyo’s first investment in overseas media, and it hopes that this will accelerate development for future projects in Asia.

The two companies also announced the formation of an exclusive joint venture in Singapore to showcase Yoshimoto Group’s most popular content across iflix’s territories in Asia, the Middle East and North Africa, and the corresponding distribution of iflix’s content in Japan.

The joint venture will also produce localised versions of proven content formats out of Japan, to significantly expand iflix’s original content offering.

The content to be provided to iflix will be popular Japanese programs that will be localised for Asian countries – including animation, drama, movies, variety, and comedy. In the future, it hopes to develop all-Japanese original content including programs and films for an Asian market. The joint venture underscores iflix’s growing focus on developing and creating what it calls highly engaging hyper-local programming aimed mostly at millennials and members of Generation Z. Most of these customers come from emerging and developing markets in Southeast Asia.

Moreover, JTBC, a South Korean media company, through its content distribution arm, JTBC Content Hub, has become a strategic investor in iflix.

Through this alliance, iflix will distribute JTBC’s premium content across Asia, setting the stage for further collaborations that may include co-productions in iflix

markets.

JTBC has built its reputation as the source of South Korea’s youth-centric content that embraces new formats. With its dramas, the company has made history for tackling complex and controversial themes, as well as setting viewership records in South Korea.