History Of The Internet-English

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Table of Contents Acknowledgments...................................................................................6 Summary.................................................................................................7 Introduction.............................................................................................8 Technology..............................................................................................9 Key People and the Volunteer Ethic......................................................19 Thailand 9s Economic Model - Financing the National Network.............22 Regulations and Telecommunications Infrastructure............................26 The Current State of the Internet in Thailand........................................30 Conclusions and Analysis.....................................................................45 Appendix A............................................................................................49 Appendix B............................................................................................53 Appendix C............................................................................................55 Appendix D............................................................................................57 References............................................................................................<br><br> 59 List of Tables 1.In-Out Traffic from Thaisarn to NSFNet During 1993-1994............17 2.Monthly Rates of a Full Time Duplex International Leased Circuit.................................................................................22 3.Thaisarn Fund Contribution Requirements.....................................23 4.Thaisarn Discounted Contribution Requirements...........................23 5.Thaisarn Internet Service 9s Pricing.................................................24 6.CAT 9s International Calls Rate........................................................26 7.Callback Savings from Thailand to Foreign Countries....................27 8.Telephone Forcast: 1992-2001.......................................................29 9.Internet Thailand 9s Initial Pricing for Individual Users.....................32 10.Internet Thailand 9s Initial Pricing for Corporate Users....................32 11.Hosts per GDP of APEC Countries.................................................38 12.CAT Median Pricing for Individual Users........................................39 13.CAT Median Pricing for Corporate Users.......................................40 14.Pricing Models of ISPs in Thailand.................................................40 15.Thai Internet Prices Compared with Regional Countries................40 List of Diagrams 1.Earliest Topology of Thaisarn Network...........................................15 2.Thaisarn Network with Two Leased Circuits to the US (Mid-1994).........................................................16 3.August 1998 Topology of Thailand 9s National Network ....................................................... 31 4.Thaisarn 9s Topology after Acquiring the First E1............................34 5.The National Network when the Internet Thailand Acquired the First E1......................................................................36 6. Local Internet Exchange in Thailand (as of August 1997)...............43 THE HISTORY OF THE INTERNET IN THAILAND 6 Acknowledgments We would like to thank Thailand 9s Internet pioneers 4 Dr.<br><br> Kanchana Kanchanasut, Dr. Thaweesak Koanatakool, Khun Trin Tantsetthi, Khun Robert Elz, and Dr. Yunyong Teng-amnuay 4 who provided enthusiastic and cooperative support for this case study.<br><br> Sincere appreciation goes to Khun Pramote Jutaporn and Khun Nittida Nuansri of Prince of Songkla University (PSU) who provided a copy of the first email message sent from PSU to Australia on June 2, 1988. We are also indebted to Dr. Deunden Nikomborirak of the Thailand Development Research Institute (TDRI) and Khun Manoo Ordeedolchest, the president of the Association of Thai Com- puter Industry, who supplied data about the current state of the national network, Thai Internet.<br><br> Special thanks are also due to Khun Boonsak Tangkamcharoen of the Multimedia Services Department at the National Electronics and Computer Technology Center (NECTEC) in Thailand for his cooperation in publishing this case study. We would also like to express gratitude to Randy Bush, Principal Investigator of the Network Startup Resource Center (NSRC), and Dr. John Klensin, co-founder of the NSRC, for their guidance in writing this case study.<br><br> The NSRC is based at the University of Oregon Computing Center, which provided valuable research support. Dr. JohnRussial of the University of Oregon 9s School of Journalism and Communication provided some helpful writing suggestions.<br><br> And finally, special thanks are due to Dr. Steven Goldstein of the United States National Science Foundation for his inspiration in writing this paper. THE HISTORY OF THE INTERNET IN THAILAND 7 Summary Thailand was an early participant in bringing the Internet to Asia, and it has a fascinating, but little-known, networking history.<br><br> The grassroots efforts by a few dedicated and visionary university professors have resulted in a fully functional national network, despite the limited infrastruc- ture and numerous technical obstacles of the early days. In fact, networking in Thailand began when virtually nothing existed in the country to establish a viable computer network. Telephone density was low, technical knowledge was scarce, and computers were expen- sive.<br><br> However, some Thai engineers managed to create the academic network with a small budget and some technical assistance from Australia. Beginning with a UUCP connection and X.25 in 1987, the Thai academic network gradually transitioned to full TCP/IP in 1992. Boosted by the strong economic growth of the early 990s, collaboration occurred with the private sector and was augmented by international financial support.<br><br> The use of the Internet in Thailand is now highly valued, especially by the younger generation. Currently, the Internet is not only a significant tool for informa- tion sharing among academics and students, but also an alternative media and a new business opportunity for Thais. The state of academic networking in Thailand has grown significantly, reaching almost every university and research institution in the country.<br><br> Many Thai schools and universities are using the Internet and its applica- tions in their curricula. The government is planning to invest more in Information Technology (IT) and human resources by improving the telecommunications infrastructure and providing more education. As of this writing, Thailand has 16 Internet Service Providers (ISPs) operating nationwide with a combined leased line capacity above 30Mbps.<br><br> (see Dia- gram 3, page 16). THE HISTORY OF THE INTERNET IN THAILAND 8 Introduction The development of the Internet in Thailand began in mid-1987 when two faculty members at the Asian Institute of Technology's(AIT)computer science department made some test UUCP connections to the Uni- versity of Melbourne, University of Tokyo, and UUNET via X.25. A year later, the Australian International Development Plan (IDP) assisted Prince of Songkhla University (PSU) in the south of Thailand in setting up dial-up email connectivity to the University of Melbourne.<br><br> In 1991, a UUCP network was established to five universities in Thailand. In 1992, when Chulalongkorn University acquired the first 9.6Kbps leased line to UUNET, the network was transformed to TCP/IP. By 1995, the usage had grown extensively, the Internet commercialized and expanded outside the academic realm to the general population.<br><br> Currently, the Internet is available in almost every big city in Thailand, especially where universities are located. Anyone who can afford it can utilize the commercial Internet Services that are available and growing throughout the country. .<br><br> This case study portrays the work of local engineers who created the building blocks for Thailand 9s national network with minimal funds and limited resources of technology and people. However, with the collabora- tion of the private sector and pro bono support from a few key volunteers, those engineers created the academic network, and now have made the Internet another form of media available for the general population in Thailand. This case study covers five major topics of the development of the Internet in Thailand: technology, human factors, the economic model, regulations and telecommunications infrastructure, and the current state of the network.<br><br> THE HISTORY OF THE INTERNET IN THAILAND 9 Technology In the early 1980s, Thailand was a barren landscape for computer networking. Copper telephone lines were mapped thinly: for one hundred Thais, only two telephones were available (Weiss, 1994). A monopoly, managed by two state enterprises 4 the Telephone Organization of Thai- land (TOT) and the Communications Authority of Thailand (CAT) - has governed the telecommunications industry since 1954.<br><br> Computers were visible but not widely used. They were expensive and incomprehensible for most Thais, due to the lack of Thai language software and the lack of computer standardization. cNetworking in Thailand was just impossible during those days, d said Kanchana Kanchanasut, a professor at the Asian Institute of Technology (AIT).<br><br> Kanchana was Thailand 9s first electronic mail (email) user in 1986. A graduate from Australia 9s University of Melbourne, she felt trapped in her own country. She was desperate for email, and one question stayed in her mind, cHow can I live here if I can 9t keep contact with friends in other countries?<br><br> d cI remember trying to explain about computer networking and email to AIT people. They just had no clue. They had never been exposed to email and did not listen to what I was talking about, d said Kanchana.<br><br> Fortunately, in 1986, Kanchan 9s colleague, Tomonori Kimura, decided to help her develop a basic computer network. Kimura also wanted to keep contact with his friends and colleagues in Tokyo. They began with a normal phone line, a NEC 2400-baud modem, and a simple NEC personal computer (PC).<br><br> The connection through copper lines running at 1200-2400 bps was noisy and unstable, especially during rainstorms. Consequently, with funding from Kimura 9s research project, they turned to Thaipak, an X.25 service from CAT, by dialing up to CAT 9s X.25 service hub through a normal phone line. Through Thaipak, Kanchana and Kimura could use UUCP to connect to the University of Tokyo and the University of Melbourne 9s server.<br><br> Shortly thereafter, they established a UUCP connec- tion to UUNET in Virginia on the East Coast of the United States (Kanchana, personal electronic communication, August 27, 1997) cWe were so excited when the first connection was successful, d recalled soft-spoken Kanchana. cSince everything was new, we improvised all the time. After teaching, we spent long hours reading and dialing the phone.<br><br> It was kind of fun, I still remember the noisy line and the excitement each time we could get a good line. d THE HISTORY OF THE INTERNET IN THAILAND 10 AIT staff did not understand what they were doing, but they cooper- ated. During that time, there was only one direct phone line at and it belonged to the president of the university. Convinced by Kanchana and Kimura 9s cresearch, d the president lent them his phone with a condition that they switch it back to his room in the morning.<br><br> After the UUCP connection was successful, email was demonstrated to AIT 9s data communications students and used to organize many computing courses, conferences, and seminars in Southeast Asia. cWithout email, how could we contact many internationally-known CS researchers? AIT could not have done what it did, d wrote Kanchana in email correspondence.<br><br> Australian Assistance : In early 1988, the Australian IDP helped PSU, AIT, and Chulalongkorn University (CU) set up the first email network in Thailand, called the Thai Computer Science Network (TCSNet). With PSU and AIT as the main local gateways, Thai academics were able to dial-up to either PSU (sritrang.psu.th) or AIT (ait.ait.th) servers which were connected to the University of Melbourne (munnari.oz.au). TCSNet used SUNIII software, UNIX-based software widely used in the Australian Computer Science Net (ACSNet).<br><br> The University of Melbourne polled PSU and AIT twice a day via a normal phone line. The cost of the long distance calls from Australia to Thailand was about $1,600 (Bt40,000) per year (NECTEC, 1994). Below is a copy of the first message, sent by Robert Elz, an Australian engineer, from PSU 9s first server (sritrang.psu.th) to the server in Australia (munnari.oz.au).<br><br> Return-path: kre@sritrang.psu.th Received: from mulga.OZ by munnari.oz (5.5) id AA06244; Thu, 2 Jun 88 21:22:14 EST (from kre@sritrang.psu.th for kre) Received: by mulga.oz (5.51) id AA01438; Thu, 2 Jun 88 21:21:50 EST Apparently-to: kre Date: Thu, 2 Jun 88 21:21:50 EST From: kre@sritrang.psu.th Message-id: <8806021121.1438@mulga.OZ> Hi. Bye (Courtesy of the Computing Center, Prince of Songkla University, Thailand) AIT THE HISTORY OF THE INTERNET IN THAILAND 11 As full-duplex UNIX-based software, SUNIII was composed of message passing networks with the ability to transmit and route the data through multiple hops. Unlike UUCP, SUNIII did not require users to indicate the destination and command through the remote system.<br><br> Instead, the network itself worked out how to route the data to the destination. The software worked well on both dedicated and dial-up lines and over other links like X.25 (R. Elz, personal electronic communication, August 10, 1997).<br><br> During that time, the University of Melbourne was an email gateway in Australia with links to the United States and many other Southeast Asian countries, including Indonesia, Malaysia, Hong Kong, and Singapore. All that was needed to establish email connectivity to Australia in those days was someone running a UNIX server on a simple connection to the University of Melbourne (R. Elz, personal electronic communication, September 2, 1997).<br><br> While PSU was directly connected to the University of Melbourne under the arrangement of IDP, AIT was Thailand 9s gateway via UUNET. When the old ARPANET was decommissioned in the late 1980s, UUNET became the gateway between the Internet and BITNET. UUNET granted AIT a free connection for academic use.<br><br> To save the transmission costs, all mail to Thailand was routed through the University of Melbourne which would forward it to two local points: PSU and AIT. PSU sorted out its own mail, and AIT, as the administrator of Thailand 9s top-level domain, took care of traffic using the .TH domain (Kanchana & Pensri, 1992). The presence of UNIX in the early 1990s spread email usage among Thai academics who, if outside TCSNet, used it through the AIT host (ait.ait.th).<br><br> The account was available 24 hours a day, but only through one telephone line. This service was free for all users except for users at AIT and an affiliate at Ramkhamheang University who paid per volume of their email messages. The rates were Bt50 for the first 500 characters, Bt45 for each of the following 1,000 characters, and Bt10 for each 1,000 characters transferred to and from PSU.<br><br> By August 1992, the network consisted of about 50 email users who also joined various mailing lists in their own research areas on the Internet. The limited connection capacity in those days meant that these users were not allowed to do remote login to other machines on the Internet (Kanchana & Pensri, 1992). Later, Kanchana urged each institution to set up its own UUCP host as a mean to spread out the UUCP network in Thailand (Kanchana, personal communication, 28 August 1998).<br><br> THE HISTORY OF THE INTERNET IN THAILAND 12 cIf AIT was the only host in Thailand, we wouldn 9t be able to expand the local network. It was difficult though to convince the computing manager of each institution. UNIX was not widely used in Thailand, and most people did not know email, d Kanchana explained.<br><br> In late 1991, another new host was established in Thailand when Dr. Thaweesak Koanantakool, then an engineering lecturer at Thammasat University, installed MHSNet software, a successor of SUNIII, at the university with a 14.4Kbps modem 4 Thailand 9s fastest at the time. Thaweesak was another researcher who was frustrated with Thailand 9s lack of networking infrastructure.<br><br> Since 1980, he had worked at the Thai Industrial Standards Institute (TISI), developing standardization of Thai codes and Thai input/output methods, handling Thai language strings on computers. With financial and technical aid from the Australian Academic and Research Network (AARNet), the host at Thammasat became an- other point of contact in Thailand, interacting with the Munnari machine running MHSNet and with Thai universities running UUCP applications. This new network included universities in TCSNet, Kasetsart University, and the National Electronics and Computer Technology Center (NECTEC).<br><br> It was planned to link the Thaisarn network to the international community by MHSNet for a period of about one year while a TCP/IP link was being set up (Thaweesak, Kanchana, Trin, & Morragot, 1992). MHSNet was an alternative network application package developed by Message Handling Systems Pty Ltd. of Australia.<br><br> As a successor to SUNIII, the software had many desirable features missing in UUCP, including smart host, by which the lengthy bang path addressing of UUCP had been eliminated. Data transfer efficiency was also improved over UUCP. In fact, many of AARnet 9s mail affiliates and Thailand 9s email gateways (AIT and PSU) were also running MHSNet software.<br><br> The MHSNet soft- ware consisted of more than 40 related programs that made an email node very powerful. It allowed users to send email, documents, data files, and programs to users around the world. MHSNet was licensed for free to universities and for a nominal fee to private companies (Thaweesak et al., 1992).<br><br> After the network was set up, Thaweesak urged everyone he knew to use email. cI made people deal with me by email; I have a lot of meet- ings and carry lots of documents every day. So I told them I would stop bringing documents to the meetings and we had to use email discussion instead of paper and Xerox machines, d said Thaweesak.<br><br> THE HISTORY OF THE INTERNET IN THAILAND 13 At the end of 1991, Robert Elz came to Bangkok again for a two-day workshop, and he taught Thai academics and engineers how to use MHSnet software, BIND, and sendmail. Elz 9s seminar exposed local engineers and academics to an affordable network using dial-up UUCP and MHSNet pro- tocols (Trin, personal electronic communication, October 7, 1997). Besides Elz, the other technical advisor for Thai universities during those days was Juris Reinfelds from the University of Wollongong, in eastern Australia.<br><br> Reinfelds was the one who persuaded the International Development Plan (IDP) that setting up computer networking in Thailand was a worthy project, and he worked side by side with Thai engineers at PSU during the startup period and installation of the SUNIII system in 1988. The spread of MHSNet and UUCP in the early 1990s made email more available for Thai academics. Everyone was excited by this new tech- nology.<br><br> Email became a daily, or even hourly, routine for more than 100 Thai academics. Besides MHSNet, NECTEC was running another cInter- University Network d on X.25. After some discussion, NECTEC 9s director, Professor Pairash Thajchayapong, decided that it was time to move to full Internet Protocol (IP).<br><br> As a result, the two networks agreed to merge on a middle ground 4 both needed to make the transition to TCP/IP (Thaweesak, personal electronic communication, September 5, 1997). cWe knew if we wanted to create a building block for the Internet, TCP/IP was the way to go. UUCP mail was just a fraction of the possibility of networking; it was cheap, but not suitable for international interactivity, d said Thaweesak.<br><br> From UUCP to TCP/IP : The merger of MHSNet and the Inter-University X.25 network in 1992 resulted in the establishment of Thaisarn, an acronym for the Thai Social/Scientific Academic and Research Network. Thaweesak explained that Thaisarn was a generic name without any implication about the power center of the network, which is a collection of interconnected academic and research sites. In addition, sarn means information in Thai.<br><br> Funded by the national budget, was technically supported by NECTEC 9s in-house lab, the Network Technology Laboratory (NTL), and collaboratively by participating sites. The network expanded rapidly in the first year, thanks to strong support from Bangkok-based international computer vendors, such as IBM (Thailand), Digital Equipment Corporation (Thailand), and Hewlett Packard (Thailand) which donated servers for test- ing. Shinawatra Datacom, a local Datakit operator, donated some of its leased line circuits to During that time, Thailand had neither a Thaisarn Thaisarn.<br><br> THE HISTORY OF THE INTERNET IN THAILAND 14 local exchange nor international leased circuits. Consequently, HP (Thai- land) and DEC (Thailand) set up two independent nodes locally, hp2hpth.co.th and decth.co.th, to transfer messages between the govern- mental and academic users and private corporations (see Diagram 1). The data between these two nodes had to travel around the globe through the corporate hubs in the United States before reaching the destinations down the street in Bangkok (see configuration details in Appendix A).<br><br> These nodes were removed once Thailand leased the first international line to the US in 1992 (Trin, Thaweesak, & Morragot, 1994). At the end of 1992, Chulalongkorn University in Bangkok acquired a 9.6Kbps link from the Communications Authority of Thailand (CAT) to connect to UUNET. Chulalongkorn paid CAT for both halves of the circuit at 25% discount.<br><br> It cost around 3 million baht a year for the line. UUNET contributed by not charging the connection fee (access fee). With this leased line, Chulalongkorn became Thailand 9s new gateway for the so-called cThaiNet d consortium, which included AIT, Chiangmai, and Assumption University.<br><br> Chulalongkorn also allowed Thaisarn members to use the Internet via a 9.6Kbps local leased line as a courtesy through NECTEC. Both ThaiNet and Thaisarn members adopted the US National Science Foundation 9s Appropriate Use Policy (AUP) (Yunyong, personal electronic communication, 28 August 1998). This leased line enabled Thaisarn members to gradually upgrade their dial-up connections to TCP/IP.<br><br> From a four site UNIX network in mid-1992, Thaisarn became a full TCP/IP net- work comprising 23 sites in mid-1994, the same year that NECTEC bought a 64Kbps leased line to UUNET. Users increased dramatically from 200 in 1992 to more than 5,000 in May 1994 and above 23,000 in June of the same year. The topology of the early development looked like a star with NECTEC and Chula in the middle.<br><br> Since there were two separate lines from Thailand to UUNET, AIT acted as the local gateway between Thaisarn and ThaiNet via a 64Kbps leased line. The topology did not change much until commercialization in 1995 (see Diagram 2 and Table 1). cWe envisioned that email access would facilitate our connections with international scholars, so we were looking for the best way to make it happen for the academics in the university, d said Dr.<br><br> Yunyong Teng-amnuay of Chulalongkorn University 9s Engineering Department. cBy that time, I got a promotional brochure from UUNET, then a budding Internet Access Pro- vider, and after considering their experiences and expertise, I decided that we would be better off by connecting to the world's then hottest Internet base. d THE HISTORY OF THE INTERNET IN THAILAND 15 Diagram 1 : Earliest Topology of Thaisarn Network Source : http://www.nsrc.org/ASIA/TH/thaisarn.gif THE HISTORY OF THE INTERNET IN THAILAND 16 Diagram 2 : Thaisarn Network with Two Leased Circuitsto the US (Mid-1994) Source : http://www.nectec.or.th/soc.culture.thai/technical.html#N.1 THE HISTORY OF THE INTERNET IN THAILAND 17 Dr. Yunyong is a veteran UNIX operator in Thailand.<br><br> In the 1980s, he attended Iowa State University and received a Ph.D in computer science. In setting up the system for the first leased line, Dr. Yunyong received assistance from Rick Adams and the Telebits Co, which donated a 9.6Kbps modem and a router for the hub.<br><br> Shortly thereafter, the Digital Equipment Co. loaned Chulalongkorn a DEC station 2100 for the server. Table 1.<br><br> The In-Out Traffic from Thaisarn to NSFNet during 1993-1994. DateNet No.Bytes intoBytes fromTraffic in % NSFNetNSFNetInOut Jan 933110,086,100291,218,5000.00 0.01 Feb11153,774,900450,993,8500.00 0.01 Mar12232,535,800637,034,8000.00 0.01 Apr11157,441,200596,281,1500.00 0.01 May13173,862,850724,595,2500.00 0.01 Jun1325,8465,250883,010,9500.00 0.01 Jul15275,098,4001,433,567,4000.01 0.02 Aug16378,205,9502,042,966,2000.01 0.03 Sep16441,728,7002,253,084,2000.01 0.03 Oct17473,182,4002,694,364,8500.01 0.03 Nov17596,610,4504,087,475,0000.01 0.04 Dec18610,994,8004,037,458,9000.01 0.04 Jan 9421972,252,1504,711,328,5500.02 0.05 Feb252,244,173,7004,127,016,3000.02 0.04 Mar252,232,012,2505,773,924,8000.02 0.04 Apr242,154,485,0005,551,750,0500.02 0.04 May262,373,120,4007,000,089,6500.01 0.04 Jun272,123,487,7007,154,443,6000.01 0.05 Jul351,974,774,3009,330,818,6500.01 0.06 Aug381,776,647,3509,168,787,1000.01 0.06 Sep381,853,146,9008,993,819,4000.01 0.05 Oct412,165,777,2508,961,772,2500.01 0.05 Nov452,666,443,40012,063,593,0000.01 0.06 Dec442,405,253,95012,819,571,5500.01 0.07 Source : http://www.nectec.or.th/soc.culture.thai/technical.html#N.2 THE HISTORY OF THE INTERNET IN THAILAND 18 The transition from UUCP to TCP/IP was smooth, due to the effec- tive decisions made by the responsible Thai network engineers. When they decided to move from UUCP to TCP/IP in 1992, Thailand had only about 100 UUCP email users.<br><br> These users had to learn about the greater abilities of the Internet Protocol (IP) suite, while new users simply absorbed what was presented to them. The popular email software when the net- work became TCP/IP was pine , originally developed in the USA at the University of Washington (Thaweesak, personal electronic communica- tion, September 5, 1997). Thaisarn 9s hub consisted of UNIX-based servers.<br><br> Even though it depended on many vendors, NECTEC standardized its main routers and switches to Cisco and WellFleet. Access modems/routers were radius- driven. As Thailand expanded its nationwide fiber optic network, NECTEC switched the lines running from its hub in Bangkok from copper to the new technology using a special digital phone interface based on E1/R2 standards (Thaweesak, personal electronic communication, July 7, 1997).<br><br> cThe significant growth of Thaisarn reflected a strong commitment by everyone - not only NECTEC. Even though it was for academia, the private sector strongly supported us. IBM gave us a 3-million baht (USD$120,000) RS/6000-320 AIX server, the Alpha 3000-800 server that DEC gave us cost 3.6 million baht (USD$144,000), and Hewlett-Packard gave us an HP9000-720.<br><br> NTL had only 5 staff during that time, but we had a lot of support from individual volun- teers who worked for free to make the Internet happen in Thailand, d said Thaweesak. THE HISTORY OF THE INTERNET IN THAILAND 19 Key People and the Volunteer Ethic Several volunteers enthusiastically supported For example, Trin Tantsetthi, a good friend of Thaweesak at TISI and Thammasat, who offered his labor for free to the network from the beginning. cI think it 9s a duty to reciprocate the taxpayer.<br><br> You see, the 4-year tuition fees for my bachelor degree from Chula [Chulalongkorn] cost me about 5,000Bt (23Bt = 1USD then). With the 145 credits I earned, it was about $1.5 per credit...too good to be true, wasn 9t it? This could not have been possible without tax money that subsidized my education.<br><br> So, when I had a chance, I took that chance to pay back my debt, d wrote Trin in an email message (Trin, personal electronic communication, October 6, 1997). In 1992-93, Trin brought up Thailand 9s first gopher, ftp, news, and web servers as communication tools of Internet users in Thailand. As an electrical engineering graduate from Chulalongkorn University, Trin was a software architect for DEC (Thailand) and a self-taught network engineer.<br><br> He explained that an article on the Altair microcomputer, which was pub- lished in Popular Electronics magazine in 1975, inspired him to work in the computing industry. Later, he studied FORTRAN on his own by using Chulalongkorn 9s textbooks. It was about 16 years prior to the creation of Thaisarn (Trin, personal electronic communication, October 7, 1997).<br><br> Besides Trin, other volunteers worked together under the name cNECTEC Email Working Group (NEW Group). d The group contributed technical knowledge to the nascent network and answered questions from both interested engineers and the growing community of users. The only reward these volunteers received from Thaisarn during those days was a free email account on NECTEC 9s server (nwg.nectec.or.th). Participation in Thaisarn was appealing to the volunteers, particularly because NECTEC was fast-paced and non-bureaucratic, unlike most other state institutions.<br><br> Volunteers worked interactively with 9s Thaisarn staff. Trin explained that the volunteer-based relationship had no strings attached. With- out any request, volunteers offered their opinion and labor to Thaisarn to build whatever they thought the network required or the users wanted.<br><br> Chulalongkorn University also played a major role training young network engineers, some of whom, after graduation, became NECTEC 9s Thaisarn THE HISTORY OF THE INTERNET IN THAILAND 20 key personnel. Yunyong explained that engineering students at the univer- sity were always allowed to participate in the setting up of the Internet gateway project and various services, including setting up mail, FTP servers, and technically supporting Thailand 9s top-level domain name (Yunyong, personal electronic communication, 28 August 1998). dWe were always excited by the abundance of the new networking technologies and knowledge we received through the Internet.<br><br> One of the major technology transfers was the introduction of c Pine , d an email soft- ware developed by the University of Washington, d explained Yunyong by email. Public Access Networking : Back in 1991, before Thaisarn acquired the first leased line, there was an attempt to bring up a cpublic access network d (Pubnet) to bridge the academic and private networks. In the early 1990s, Thailand had more than 50 Bulletin Board Systems (BBS), some of which were connected to FidoNet.<br><br> Trin proposed the Pubnet idea to his then-employer, Digital Equipment Corporation (DECThailand), and received a VAX machine to start up Pubnet. In his proposal, Trin wrote that without a public network, cIT researchers (in Thailand) could not share tools and research works in a convenient manner. As a result, there were many duplicated efforts in solving similar problems.<br><br> Incompatible Thai system implementations in the personal computer industry, different character sets, proprietary extensions and variants of TIS standards were a few negative examples of what happens when we do not work together. d (Trin, 1991) Trin defined a public network as, ca collection of public access systems which talk to each other by a set of common protocols. d Conse- quently, he designed Pubnet by using the DEC 9s VAX machine running Ultrix OS as a gateway machine in the middle of 9s UNIX-based network and the PC-based BBS network (Trin, 1991). What Pubnet needed was a volunteer BBS running a gateway application that would link it up with 9s UNIX gateway. It was not until the end of 1992, when Alan Dawson, a cveteran modemer d living in Thailand, stepped forward and of- fered his PC to run Wildcat software, that Pubnet became successful.<br><br> Dawson 9s gateway machine exchanged email between the UNIX gateway and other BBSes using a BBS packet transfer mode. At that time, Pubnet distributed a free Usenet feed from to BBSes and some BBS operators offered email services with some cost-recovery charges since that required international calls to either the US or FidoNet 9s Zone master in Singapore (Trin, personal electronic communication, August 5, 1997). Thaisarn Thaisarn Thaisarn THE HISTORY OF THE INTERNET IN THAILAND 21 Many Thais used Pubnet, which was basically free and easy to use.<br><br> Anyone with a modem and a PC could connect to BBSes and be on Pubnet. However, due to a lack of formal fundraising, Pubnet soon failed finan- cially. Nevertheless, Pubnet successfully demonstrated the possibility of networking among incompatible platforms and prepared Thais for the Internet.<br><br> cYou see, when Pubnet was proposed, the chance of getting an Internet connection (in Thailand) was far beyond imagination, d wrote Trin Tantsetthi, now the president of the Internet Thailand Co., Thailand 9s first commercial Internet Service Provider (ISP), via email. cIt was impossible to Pubnet was a free service and volunteer-based, it depended on how deep the pocket of the volunteer was, but I didn 9t have many alternatives. Volunteer-based organizations everywhere in the world not only rely on strong will and dedication, but also funding. d (Trin, personal electronic communication, July 19, 1997) get a leased line connection from Thailand to the Internet due to the distance and big international communication costs.<br><br> And since THE HISTORY OF THE INTERNET IN THAILAND 22 Thailand 9s Economic Model - Financing the National Network began with 12 million baht (USD$480,000) of seed money from the government and about 15 million baht (USD$600,000) in the form of donations from the private sector during the first three years. As of 1993, the network used about 8 million baht (USD$320,000) per year for mainte- nance and leased line acquisition. Currently, it uses Bt30 million (USD$1.2 million) per year.<br><br> The government now pays for 9s leased lines, which are acquired at a 25 percent discount from CAT (see CAT 9s full price in Table 2). Thaisarn 9s downstream sites help pay for salary and machine maintenance by contributing towards 9s fund according to the bandwidth speed of their leased lines (see Table 3 and 4). Table 2.<br><br> Monthly Rates of a Full Time Duplex International Leased Half Circuit SpeedCountries nearAsian and ASEANOther countries Thai Bordercountries 56/64K$4,800 a $5,520$6,200 128K6,4407,3608,280 192K9,00010,24011,560 256K10,52012,04013,520 384K13,60015,56017,480 512K16,04018,36020,640 768K22,20025,40028,600 1024K26,24030,00033,760 1536/1544K33,28038,00042,800 1920/2048K35,92041,04046,160 8448 K90,720103,680103,680 34M181,440207,360207,360 a n = Exchange rate 1USD = Bt25 Note: As of August 1998, the exchange rate is Bt40 = 1USD Source : Communications Authority of Thailand. Available: http://www.cat.or.th/new/ leased.htm (August 1997) Thaisarn Thaisarn Thaisarn THE HISTORY OF THE INTERNET IN THAILAND 23 Table 3. Thaisarn Fund Contribution Requirements (in USD a ).<br><br> Site 9s SpeedPrice/month b 1. First 19.2 KbpsExempt 2. Second 19.2KbpsExempt if connected through the first site 3.<br><br> 64Kbps$800 a 4. 128Kbps1,600 5. 256Kbps3,200 6.<br><br> 512Kbps4,800 7. 2Mbps6,400 a n = Exchange rate 1USD = Bt25 Note: As of August 1998, the exchange rate is Bt40 = 1USD b n = no start-up fee Source : Rabieb Kan Chium Tor Kab Krua Kai Thaisarn II Pan NECTEC. (1997).<br><br> How to connect to ThaisarnII 9s Internet), http://ntl.nectec.or.th/thaisarn/thaisarn-policy.html Table 4. Thaisarn Discounted Contribution Requirements a . 1 st site 9sNo.<br><br> of downstreamAccumulativePrice/month speedsites to Thaisarn hubbandwidt 64KbpsAt least 3At least 32KbpsExempt 128 KbpsAt least 3At least 64Kbps$320 b 256 KbpsAt least 3At least 64Kbps640 512 KbpsAt least 6At least 128Kbps960 2MbpsAt least 8At least 256Kbps1,280 a n = This pricing is applied when sites have their downstream sites connected directly to Thaisarn 9s hub in Bangkok. b n = Exchange rate 1USD = Bt25 Note: As of August 1998, the exchange rate is Bt40 = 1USD Source : Rabieb Kan Chium Tor Kab Krua Kai Thaisarn II Pan NECTEC. (1997).<br><br> (How to connect to ThaisarnII 9s Internet), Available: http://ntl.nectec.or.th/thaisarn/ thaisarn-policy.html Despite rapid expansion, could neither cope with strong demand from users nor afford to establish an independent site to every organization. In early 1994, Thaisarn opened a new server called cmorakot.nectec.or.th, d for individuals who worked for the government agen- cies and non-profit organizations that could not afford to set up their own nodes. Users were required to pay a startup fee plus monthly costs ranging from USD$12 to $160 per month (see Table 5).<br><br> Called the cThaisarn Internet Service d (TIS), the service was reserved only for governmental agencies, educational and research organizations, and non-governmental Thaisarn THE HISTORY OF THE INTERNET IN THAILAND 24 organizations (NGOs). Abiding by CAT 9s restrictive law not to resell the bandwidth, NECTEC could use the TIS-generated income to pay only for server maintenance, phone lines, and staff salary. This demanding regula- tion later resulted in some unlawful practices and an outburst of demand for the Internet.<br><br> Table 5. Thaisarn Internet Service 9s Pricing. ServicePrice/monthService Description A (Text only)$12 a 20 hours/month (email,usenet only) B (Full Internet)2030 hours/month (email, Internet) U (UUCP links to NGOs)16030 hours/month D (an extra 200Kbdisk storage option)4 T (an extra 10 hour session option)4 a n = Exchange rate 1USD = Bt25 Note: As of August 1998, the exchange rate is Bt40 = 1USD Source : Thaweesak Koanantakool, Trin Tantsetthi, and Morragot Kulatumyotin.<br><br> (1994). Thaisarn : The Internet of Thailand. Available: http://www.nectec.or.th/bureaux/nectec/ ThaiSarn.book/index.html National IT projects : In the 1996 fiscal year, the Thai government had approved a Bt4.2bn (USD$120-168million) budget for the national IT infrastructure and human resource development.<br><br> This is a part of the Tele- communications Master Plan and the 8 th National Economic and Social Development Plan. Called IT-2000, the plan aims at developing a national IT infrastructure, human resources, and enhancing government service using the computer networks. The first project, to build a national information infrastructure (NII), is to use the existing telecommunications resources, including the nation- wide fiber optic network and satellites, to expand the Internet service into rural areas.<br><br> This plan is coupled with the current cInformation Superhigh- way Testbed, d also managed by NECTEC, which uses ATM technology to improve the data transmission capability of the country from the current 2Mbps to 155-620Mbps (Thaweesak, 1997). NII would facilitate remote schools connecting to the Internet by reducing the long distance telephone costs. Currently, schools that wish to get on the Internet can either cooper- ate with local universities or dial to Thaisarn's hub in Bangkok.<br><br> However, not every province in Thailand has a university. THE HISTORY OF THE INTERNET IN THAILAND 25 The second project, to invest in people, intends to concentrate on transferring IT knowledge to Thai children. One free universal access service began late last year to celebrate His Majesty the King 9s golden jubilee.<br><br> Called Kanchanapisek Network Project, the network provides limited access to the World Wide Web to students and everyone with Internet access in their area by using a special toll-free number. Also, SchoolNet and IT Campus projects were initiated to make Thai students more comfortable with the Internet. Currently, more than 74 schools in Thailand have joined SchoolNet.<br><br> Local computer vendors such as Microsoft, Intel, Compaq, and Powell support this project by donating some hardware and software to schools. IT Campus is now composed of 15 universities in 11 provinces. It is expected that it will cover at least 30 provinces by the end of 1999.<br><br> Meanwhile, long-term training is being prepared. Two projects, the National Multimedia Institute (NAMMI) and Electronic Industry Institute, will be established to provide solid technology training in multi- media as a means to make Thailand an information provider on the Internet. Localization of software is also being promoted by the government in setting up the Software Park project 4 a plan to boost Thai engineers to produce more software by giving them some attractive rewards such as tax exemption from the Board of Investment for large-scale software production.<br><br> The third project, called the Government Information Network (GINET), plans to link all government agencies in 76 provinces together on the national fiber optic backbone as well as encourage government officers to become more computer literate. In the future, every government officer will be required to pass a computer test before being promoted. THE HISTORY OF THE INTERNET IN THAILAND 26 Regulations and Telecommunications Infrastructure Regulations : The telecommunications industry in Thailand is a monopoly, governed by two state enterprises: the Telephone Organization of Thailand (TOT) and the Communications Authority of Thailand (CAT).<br><br> TOT controls the domestic telephone industry; CAT regulates the international, including half-circuits to the Internet. Until commercialization in 1995, CAT reserved the international leased bandwidth for state academics and government. Despite a recent discount from CAT, international calls made from Thailand are about three times more expensive than ones made from the US.<br><br> Coupled with the first minute surcharge, the rates vary by zones and times that the calls are made (see Table 6). Many expatriates and travelers bypass telephone on the Thai site by using the callback service which reduces their costs up to 77 percent (see Table 7). Table 6.<br><br> CAT 9s International Calling Rate (per minute a ). ZoneStandard PriceEconomy RateReduced Rate 7.00am-9.00pm9.00 pm-12.00am12.00am-5.00am 5.00am-7.00am Asia, North America,$1.60 b $1.28$1.12 Australia ASEAN1.361.081.08 Hong Kong Europe, Middle East,1.841.481.28 Pacific Ocean Africa, Central America, 2.201.761.56 South America Singapore, Myanmar,1.200.960.96 Cambodia a n = Rates effective since March 1, 97. b n = Exchange rate 1USD = Bt25 Note: As of August 1998, the exchange rate is Bt40 = 1USD Source : The Communications Authority of Thailand.<br><br> Available: http://www.cat.or.th (1997, July 18) THE HISTORY OF THE INTERNET IN THAILAND 27 Table 7. Callback Savings from Thailand to Foreign Countries. Savings on calls from Thailand to:Through domesticFrom hotels Exchange Argentina28%73% Australia23%72% Belgium23%72% France28%73% Germany28%73% Italy23%72% South Africa28%73% Switzerland28%73% UK38%77% US38%77% Source : cCallback Services Help Reverse Asia Charges-Phone Services that Undercut Monopolies, d (1994, September 29).<br><br> Financial T imes. At the end of 1994, CAT caved in to the popular demand for the Internet. With TOT and NECTEC 9s legal entity the National Science and Technology Development Agency (NSTDA), CAT set up Thailand 9s first commercial ISP, Internet Thailand Company, and established a legal formula for creating an ISP.<br><br> First, applicants must be in either the telecom- munications or computing industry. Second, the new entity must be a joint venture with CAT, which will get 35 percent of the total equity for free (33% to CAT and 2% to CAT 9s staff). This agreement does not apply to Internet Thailand because in that case CAT actually paid for its shares.<br><br> Third, every ISP must buy leased circuits to the Internet through or from CAT. CAT reserves the right to send its personnel to work in the ISP and has the right to veto the decisions made by the board of directors. Fourth, every ISP must agree to transfer to CAT the ownership of all networking equip- ment, such as routers and modems, at the establishment of the new entity.<br><br> CAT also sets up guideline pricing for how much an ISP can charge their customers. Telecommunications Infrastructure : Telecommunications in Thailand has developed dramatically in the past ten years. One year after Kanchana struggled with AIT 9s single phone line in 1986, TOT allowed Thais to buy phone equipment directly from market sources instead of from TOT agen- cies for the first time.<br><br> By the end of 1990, due to an inadequate budget, TOT allowed private companies to build the nationwide fiber optic network, THE HISTORY OF THE INTERNET IN THAILAND 28 the submarine fiber optic network in the Gulf of Thailand, and commercial satellites. The fiber optic network enabled TOT to increase the national long-distance telephone service between Bangkok and Thailand 9s north- ern, northeastern, and southern regions. The submarine fiber optic net- work enhanced voice, data, and television traffic as well as improved long distance calls to the south, which in the past were always affected by winds and monsoons (Rassamee, 1997).<br><br> Thailand 9s first commercial satellite was launched in 1993, by the Shinawatra Computer and Communication Group. Currently, Thailand has three satellites, Thaicom 1, 2, and 3 which enhance local, regional, and global transmission capacity of the country. Meanwhile, the land lines were not improved until the end of 1992.<br><br> The demand grew dramatically from 305,148 in 1986 to 992,496 in 1990; the future demand is expected to be 800,000 lines annually (TOT, 1996). In 1990, the Thai government authorized Charoen Pokphand Group, a Thai consumer goods manufacturer, to install three million lines in Bangkok and provinces throughout Thailand. This project, however, was interrupted by the 1991 coup d 9etat and thus revised by the Anand Panyarachun government.<br><br> Known as Thailand 9s most respectable and efficient govern- ment, the Anand government considered the initial contract unfair and thus split the three-million-line project into two parts: two million lines in Bangkok for Charoen Pokphand and one million lines in the provinces to Thai Telephone and Telecommunications (TT&T). Both companies used a state- of-the-art transmission network, composed of digital switches and fiber optic lines. The next government also supported the projects.<br><br> Chuan Leekpai, the country 9s first elected prime minister with no military or bureaucratic background, encouraged both contractors to finish the projects by the end of 1996, one year earlier than scheduled. The government intends to continue to expand domestic lines. By the end of 2001, telephone density is expected to be 5 to 1 - five people per telephone.<br><br> However, that does not mean telephones will be equally distributed in Thai- land. In fact, they will concentrate in big cities where only a third of total population resides (see Table 8). THE HISTORY OF THE INTERNET IN THAILAND 29 Table 8.<br><br> Telephone Forecast: 1992-2001. YearBangkok and Provinces Total of Thailand Surround # ofPhones# ofPhones# ofPhonesBKK: Phonesper 100phonesper 100phonesper 100province people people peopleratio 19922,228,48226.70935,8431.883,148,1255.462.38:1 19932,617,59130.771,152,2512.293,768,8426.412.27:1 19943,007,12035.001,436,1282.824,473,2487.502.11:1 19953,457,10539.061,784,8953.465,242,0018.671.94:1 19963,882,85443.102,237,0424.286,110,9069.991.74:1 19974,282,85045.682,804,1785.317,087,02811.431.53:1 19984,651,16449.883,491,9396.538,143,10312.961.33:1 19994,877,18752.464,341,1578.029,318,34414.651.15:1 20005,252,71454.525,343,2069.7710,305,92018.480.88:1 20015,507,25256.066,515,31911.7812,022,57118.460.85:1 Source : More Freedom on the Line. Bangkok Post Mid-year 996 Economic Review.<br><br> THE HISTORY OF THE INTERNET IN THAILAND 30 The Current State of the Internet in Thailand Thailand currently has sixteen ISPs operating nationwide with a total bandwidth of more than 30Mbps. The three largest are the Internet Thai- land Company, KSC Comnet, and the Loxinfo Company. (see the Diagram 3).<br><br> In 1995, CAT, TOT, and NSTDA established the Internet Thailand Company, a state enterprise Internet Service Provider. While CAT and TOT hold 33 percent, NSTDA, the legal entity of NECTEC, holds 34 percent of the total shares. It was the first time that three state enterprises formed a commercial company on their own, which required Cabinet approval.<br><br> Internet Thailand 9s first 512Kpbs leased line to UUNET was Thailand 9s biggest compared to Thaisarn 9s 64 Kbps at the time. Adopting TIS 9s system design and service model, Internet Thailand used PPP and SLIP protocols to serve its customers. The monthly charges of the services for individuals ranged from USD$16 for email and Usenet news to $48 for a full IP account.<br><br> Corporate users were charged from Bt15,000 (then USD$600) for a 9.6Kbps link to Bt700,000 (then $28,000) for a 512Kbps link (Commercial Internet, January 18, 1995) (see Table 9 and 10). THE HISTORY OF THE INTERNET IN THAILAND 31 Diagram 3 : Current (as of August 1998) Topology of Thailand 9s National Network Source : http://www.nectec.or.th/inet-map/980801 (as of August 1998) THE HISTORY OF THE INTERNET IN THAILAND 32 Table 9. Internet Thailand 9s Initial Pricing for Individual Users.<br><br> Service Types Price/monthService description 1. HomeNet$16 a Email and USENET, 15 hours monthly session, 400 in-out messages. 2.<br><br> WorldNet24HomeNet + Telnet, FTP service, 20 hours session, 1MB disk space + 600 in-out messages. 3. BizNet48Full Internet, 40 hours session, 2 MB storage, 1200 in-out messages.<br><br> 4. WorldNet Plus40WorldNet + SLIP or PPP enabled. 5.<br><br> BizNet Plus60BizNet + SLIP or PPP enabled. a n = Exchange rate 1USD = Bt25 Note: As of August 1998, the exchange rate is Bt40 = 1USD Source : cCommercial Internet Service Rates Announced. d (1995, January 18). Bangkok Post.<br><br> Table 10. Internet Thailand 9s Initial Pricing for Corporate Users. Line SpeedPrice/month a 9.6Kbps$600 b 14.4Kbps800 19.2Kbps1,000 28.8Kbps2,400 64 Kbps4,000 128 Kbps7,000 256 Kbps10,000 512 Kbps28,000 a n = All rates are subject to a start-up fee equal to 2-month subscription.<br><br> Members pay startup fee plus a 6-month subscription up front. a n = Exchange rate 1USD = Bt25 Note: As of August 1998, the exchange rate is Bt40 = 1USD Source : cCommercial Internet Service Rates Announced. d (1995, January 18). Bangkok Post.<br><br> KSC Comnet, was also established in 1995, Thailand 9s IT Year. KSC is a joint venture of CAT, ABAC (privately-owned Assumption University), Ban Chang Group, and the Thai Sugar Group, later replaced by Jasmine International, a Thai fiber optic construction company. At the end of 1995, CAT approved three additional ISPs, including Loxinfo, which is led by a giant telecommunications firm, Loxley International Company, the Wattachak Group, a media company, and the Advanced Research Group.<br><br> THE HISTORY OF THE INTERNET IN THAILAND 33 After commercialization, the Internet became more socially significant in Thailand. This was coupled with the national promotion of computer usage. Since the beginning of the 1990s, the government promoted computer usage by slashing import taxes from 35-40% to 5% for finished products and from 20% to 4% for hardware.<br><br> Computers have become widely used in Thailand, especially in Bangkok. People 9s percep- tion of computers versus typewriters changed as they realized the power of a machine on which they can store megabytes of data at both work and home. As of 1996, the growth of PCs was 30% and software 11% annually (Bussakorn, 1996).<br><br> Newspapers jumped on the bandwagon of World Wide Web (WWW) publications. The Bangkok Post, an English-language newspaper, pub- lished 1995 election news live on the Web. In July 1995, Thailand 9s total solar eclipse was also published on a special homepage.<br><br> Thai expatriates depended on these newspapers to keep up with current events in Thai- land. Domestically, NECTEC demonstrated an Internet Cafe using the first local 2Mbps circuit at the IT-Week conference in 1995. And at the end of the year, Thaisarn received funding from the Japanese National Center for Scientific Information Systems (NSCSIS) for the first E1 leased line from Thailand to the Scientific Information Network (SINET) in Japan (see Diagram 4).<br><br> THE HISTORY OF THE INTERNET IN THAILAND 34 Diagram 4 : Thaisarn 9s Topology after Acquiring the First E1 Source : http://www.nectec.or.th/inet-map/1995/ THE HISTORY OF THE INTERNET IN THAILAND 35 In early 1996, Internet Thailand acquired another E1 to MCI (see Diagram 5). When Thailand hosted the Asia-Europe Meeting in 1996, Internet Thailand and NECTEC combined their international leased lines with a local E1 circuit to provide an Internet service to participants from Europe and Asia. This significantly boosted Thailand 9s role as an informa- tion provider on the World Wide Web.<br><br> Despite the national promotion, commercial Internet service did not aggressively gain a foothold in Thailand. By the end of 1995, there were only 60 corporate nodes connected to the commercial ISPs. The total num- ber of users in Thailand was about 100,000, most of whom used the Internet through their organizations, including Thaisarn 9s sites.<br><br> Only 10% (10,000) were individual customers of commercial ISPs. According to Thaweesak, the sluggish growth of individual users was because commercial Internet service was still a fledging idea and the prices were too high by Thai standards (Bussakorn, 1996). cIn Thailand, the Internet service is quite expensive because we are far from the center of the Internet, or the US, and we have to pay for the leased line in US currency, d said Yunyong.<br><br> cAlso, I think we have an unpro- ductive pricing structure. Instead of setting a lower price for domestic Internet to encourage usage, we make everyone pay for international Internet, which is very expensive. Also, instead of promoting email which is a very useful communicating tool, we are so excited about the WWW, video, and sound clips which take up more of those expensive bandwidths. d The English-dominated Internet also daunted most Thais.<br><br> cThais are not like Singapore Chinese or other countries where people speak English as a second language. That 9s why the growth here cannot be sustained after it has saturated among English speakers in the coun- try, d said Thaweesak (Thaweesak, personal electronic communication, September 5, 1997). THE HISTORY OF THE INTERNET IN THAILAND 36 Diagram 5 : The National Network when the Internet Thailand Acquired the First E1 Source : http://www.nectec.or.th/inet-map/1996/ THE HISTORY OF THE INTERNET IN THAILAND 37 The intervention from the Ministry of Transport and Communications (MoTC) and the competition among Thai ISPs recently drove down the price of services for individual users (ISPs considering, The Nation, April 28, 1998).<br><br> In early 1997, after CAT reduced its pricing guideline (for both minimum and maximum), Internet Thailand slashed the startup fee from Bt2,000 to Bt200-300 and monthly service from Bt1,200 to Bt900. It also offered a 5 to 10 percent discount for subscriptions longer than 6 months. Some smaller ISPs were less expensive.<br><br> ( cISPs expecting, d March 25, 1997). Other new ISPs sought a market niche. The Loxinfo Company, for example, encouraged local radio and television production companies to provide materials to its website to expand the customer and advertising base ( cInternet provider, d June 26, 1997).<br><br> Meanwhile, corporate users paid expensive prices for leased lines acquired from local ISPs, at least nine times more than 25 other developing countries ( cSurvey, d February 26, 1997). As of 1996, Internet Thailand had 5,000 individual users and 80 corporate customers; KSC meanwhile claimed 60,000 individual users (http://www.nsrc.org/db/lookup/operation=lookup-report ID=890202389184 :497434953/fromPage=TH). The Thailand Development Research Institution (TDRI), a non-profit organization, found that the PTT model not only increased the cost of Internet service in Thailand but also reduced the country 9s ability to compete with its neighbors.<br><br> In its report about Internet pricing in Thailand (Somkiat & Deunden, 1997), TDRI researchers found that when compared with the APEC countries with equivalent GDP, Internet distribution in Thailand was 1-2 years slower. Thailand was ranked side by side with Indonesia and the Philippines, all of which had fewer than 50 hosts per every $1 billion value of GDP (see Table 11). While the Internet in Singapore and Malaysia, both in a free market system, took off since 1995 (as seen in a dramatic increase of host numbers), the Internet in Thailand kept a low profile.<br><br> Why? It appears that the telecommunications monopoly and the market intervention of CAT discouraged Internet growth. TRDI 9s equation showed that a country with a monopoly system has 557.2 fewer hosts for every $1billion worth of GDP than a liberalized country (see Appendix B).<br><br> THE HISTORY OF THE INTERNET IN THAILAND 38 Table 11. Hosts per GDP of APEC countries a . Country AbbreviationReal GDP#Host (Jan 97)#Host/GDPMonopoly 1996 (US1Bn) PhilippinesPh81.3362844.6No ThailandTh187.2924549.4Yes IndonesiaId229.8959141.7Yes SingaporeSg94.638376405.5No MalaysiaMy88.725200284.2No ASEAN136.317208165.0 TaiwanTw288.034652120.3Yes Hong KongHk164.749162298.5No KoreaKr509.466262130.1No ChinaCh825.0129114156.5Yes MexicoMx311.62984095.8No ChileCl77.015885206.3No AustraliaAu393.85147601307.1No New ZealandNz64.8845321305.1No CanadaCa622.4603325969.3No Non-ASEAN361.8169725509.9 All 14 APEC281.3115255386.8 a n = Due to great differences in host density, US, Japan, Brunei, and Papua New Guinea are excluded from this study.<br><br> Source : cRai Ngan Phon Karn Wichai Reung Sapab Karn Kangkan Lae Raka Ka Borikarn Internet Nai Prathet Thai (Competition and Pricing of Thai Internet), d by Somkiat Tangkitvanich and Deunden Nikomborirak, (1997, June 6). Thai Development Research Institute. CAT 9s interference in the market also distorted the dynamics.<br><br> By set- ting up the guideline pricing, CAT spawned a tacit collusion among big ISPs (as shown in Table 12, 13, and 14) when they agreed to set their service charges at the maximum. Compared to seven regional countries (Indonesia, Singapore, Malaysia, Hong Kong, Taiwan, South Korea, and Japan), the monthly price of the 20 hour Internet service for individuals in Thailand was 20-63 per cent more expensive than every country except Japan. For the Thai corpo- rations who needed international leased line connections, things were even worse.<br><br> The monthly cost of a 64Kbps leased line in Thailand was more than USD$3,200 plus a $3,000 non-refundable startup fee. This was 50-80 percent more expensive than other APEC countries (see Table 15). THE HISTORY OF THE INTERNET IN THAILAND 39 Table 12.<br><br> CAT Median Pricing for Individual Users (Effective since March97) ServiceConnectivityStart-upMonthlySession/monthDiskExtra time Storage (USD a ) (MB) TextDial-up$8$14.4152$1.2 GraphicDial-up12362021.6 a n = Exchange rate 1USD = Bt25 Note: As of August 1998, the exchange rate is Bt40 = 1USD Source : cRai Ngan Phon Karn Wichai Reung Sapab Karn Kangkan Lae Raka Ka Borikarn Internet Nai Prathet Thai (Competition and Pricing of Thai Internet), d by Somkiat Tangkitvanich and Deunden Nikomborirak, (1997, June 6). Thai Development Research Institute. Table 13.<br><br> CAT Median Pricing for Corporate Users (Effective since March97) ServiceConnec-Start-upMonthlyTraffic Extra traffic Maximum tivityMB$/MB Charges b UUCPDial-up$144 a $14440hrs$3/hrNA IP 9.6KbpsLL5405401,3000.40$720 IP 14.4KbpsLL7207201,9000.40900 IP 19.2KbpsLL9009002,5000.401,800 IP 28.8-LL1,8001,8003,7000.403,600 63.9Kbps IP 64KbpsLL3,6003,6008,4000.406,300 IP 128KbpsLL6,3006,30016,6000.409,000 IP 256KbpsLL9,0009,00033,2000.4025,200 IP 512KbpsLL25,20025,20066,4000.4075,600 IP 513Kbps-LL75,60075,600265,4000.40151,200 2Mbps a n = Exchange rate 1USD = Bt25 Note: At this publication (August 1998), the exchange rate is Bt40 = 1USD b n = An ISP can seek no more than the maximum charges set by CAT. The lowest charges can be up to 40 percent lower than the median pricing. Source : cRai Ngan Phon Karn Wichai Reung Sapab Karn Kangkan Lae Raka Ka Borikarn Internet Nai Prathet Thai (Competition and Pricing of Thai Internet), d by Somkiat Tangkitvanich and Deunden Nikomborirak, (1997, June 6).<br><br> Thai Development Research Institute. THE HISTORY OF THE INTERNET IN THAILAND 40 Table 14. Pricing models of ISPs in Thailand.<br><br> NamesIndividual accountLeased line (64 Kbps) for 20hrs/monthCorporate users Start-upMonthly A Net$29.96 a $3,600$3,600 Asia Access31.96NANA Asia Infonet24 ($12 for students)2,1602,160 Idea Net323,2003,200 Line Thai363,6003,600 Info News24 (10hrs)3,6003,600 Internet Thailand363,6003,600 Loxinfo362,8002,800 KSC Comnet323,6003,600 Siam Global Access 323,0603,060 Samart Cybernet32NANA a n = Exchange rate 1USD = Bt25 Note: As of August 1998, the exchange rate is Bt40 = 1USD Source : cRai Ngan Phon Karn Wichai Reung Sapab Karn Kangkan Lae Raka Ka Borikarn Internet Nai Prathet Thai (Competition and Pricing of Thai Internet), d by Somkiat Tangkitvanich and Deunden Nikomborirak, (1997, June 6). Thai Development Research Institute. Table 15.<br><br> Thai Internet Prices Compared with Regional Countries. CountriesDial-up Service forLeased line (64Kbps) Individual (20Hrs) Startup Monthly Startup Monthly Thailand$11.54 a $33.65$3,076.92$3,205.13 Hong Kong12.3219.78251.94659.95 Taiwan3.6022.12107.91953.24 Singapore9.2617.35300.931018.52 S. Korea11.2022.40111.98667.97 Malaysia22.8212.30595.24892.86 Indonesia22.5925.75821.361232.03 Japan240.00160.00311.471541.33 a n = Exchange rate 1USD = Bt25 Note: As of August 1998, the exchange rate is Bt40 = 1USD Source : cRai Ngan Phon Karn Wichai Reung Sapab Karn Kangkan Lae Raka Ka Borikarn Internet Nai Prathet Thai (Competition and Pricing of Thai Internet), d by Somkiat Tangkitvanich and Deunden Nikomborirak, (1997, June 6).<br><br> Thai Development Research Institute. THE HISTORY OF THE INTERNET IN THAILAND 41 The CAT 9s self-allocated free shares distorted the competition by increasing the burden to ISPs who, to keep up with the projected profiting, passed those costs on to the user base. TDRI pointed out that CAT 9s free shares cost each ISP about 8-20 percent in addition to the real costs (see Appendix C).<br><br> However, CAT 9s policy eventually backfired. Since the beginning of commercialization in 1995, CAT had been enjoying a large profit from this new technology. It set a traffic limit for Thai hosts.<br><br> Additional traffic of 2,000 megabytes per month cost Bt150 per megabyte. This was 60 times more expensive than the prices of Bt2.5- Bt18.75 per megabyte set by foreign ISPs, some of whom offered unlimited traffic for their corporate users. CAT 9s traffic limit not only discouraged data transfer, technical improvement, and content development of Thai sites but also forced them to seek cheaper sites coffshore d (Charges push, October 9, 1997.<br><br> Bangkok Post) The Bangkok Post, with traffic in excess of 7,000 megabytes per month, moved its Internet edition to a US site late last year to avoid the cost. In its editorial, the newspaper explained, cSubstantial price differences in basic hosting and potential to reduce or eliminate transfer fees makes the decision of placing a Web site offshore easy to make... The high CAT charges will impact Thai-based ISPs who hope to establish information sites, prov<br><br>

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