Analysis of Internet Access in Thailand: Drivers and Barriers

Abstract

Internet usage is growing around the world including in developing countries like Thailand. This study attempts to provide guidance to the National Regulatory Agency (NRA) by addressing the following question: What are the key determinant factors to explain the probability that an individual consumer uses the Internet? The multinomial logit model is employed to examine empirically whether the price of the service, accessibility to fixed telephony infrastructure, socioeconomic variables and area of residence have a systematic link to Internet usage for each technology. The data from a national survey in 2010 by the National Telecommunications Commission (NTC) of Thailand are used for the analysis. Four types of Internet technologies: dial-up, asymmetric digital subscriber line (ADSL), mobile broadband and Wi-Fi, are included in this study. Based on the findings, the variables with potential impact are price, fixed infrastructure, income, age of consumer and residential area. The impact of these factors varies across the technologies. The results of this paper are compatible with prior literature, although there are important differences: the infrastructure of fixed telephony is considered an important factor in stimulating Internet usage, and ADSL and mobile Internet connection are still considered to have inelastic prices. A policy recommendation that could encourage competition and growth in Internet usage is the development of a fixed and mobile infrastructure and allowing more competition at infrastructure and service level.