Analysis of fixed broadband access and use in Thailand: Drivers and barriers

Highlight
• The aim of this paper is to analyze the demand for fixed broadband in Thailand.
• Data obtained from a national survey in 2010 and the bivariate probit model is employed.
• Finding show fixed infrastructure and socio-economic factors are the demand determinants.
• The impact of these factors varies with the service (i.e. video download and social network).

The aim of this paper is to analyze the demand for fixed broadband in Thailand. Data were obtained from a national survey in 2010 by the National Broadcasting and Telecommunications Commission (NBTC) of Thailand. The bivariate probit model was employed to examine empirically whether accessibility to fixed telephony infrastructure, socio-economic variables and the area of residence have a systematic link to fixed broadband access in the first stage, and then, specific usage, provided access exists, is estimated. Results of this study show that the variables, together with their potential impact, are as follows: fixed infrastructure, income, gender, level of education, age of consumer and residential area. The impact of these factors varies from service to service (i.e. video download, social network, searching and e-mail). The implications for the NBTC are to encourage competition through the infrastructure and to permit more competition in infrastructure development. This could stimulate the growth of fixed broadband access and use. At the same time, the government could also implement policies to encourage more access and usage, for example income subsidization and training program.