D-Link Sees Strong Growth in Broadband

By Srisamorn Phoosuphanusorn, Bangkok Post, Thailand

May 25–The pace of broadband growth in Thailand has prompted D-Link International Pte to develop wireless high-speed Internet equipment for home digital multimedia applications in the household market.

The Taiwanese equipment firm hoped its wireless technology would help boost the number of Thai households using broadband services by 50 percent this year, according to Peter Lim, the vice-president for Southeast Asia.

D-Link yesterday appointed a SET-listed IT product firm, SIS Distribution (Thailand) Plc, to offer the new products.

Major operators believed the number of broadband users in Thailand would reach one million by year-end, compared with 500,000 in 2005, and 200,000 in 2004.

The figure is projected to top 2.7 million next year once leading players tap into IPTV (Internet protocol television), or TV broadcasts over the Internet.

True Corp, the Bangkok fixed-line operator that dominates the broadband market, expected to have 600,000 broadband Internet subscribers this year, up from 400,000 in 2005 and 200,000 in 2004.

Mr Lim said broadband users were likely to shift into the wireless sector in the next 18-24 months, given the increased number of laptop-computer owners and demand for digital multimedia applications.

Thailand had been dubbed a broadband success, like Singapore two years ago, when people shifted to wireless high-speed Internet from wire-based broadband.

Mr Lim said the rapid growth in the Thai market was mainly due to the government’s policy of promoting high-speed broadband Internet, prompting TOT Plc to halve its monthly service fees to 500 baht with True following suit.

This figure was “minimal”, compared with 800-900 baht a month in Singapore.

Mr Lim also said voice-over-Internet protocol (VOIP) technology would be the next big thing in Thailand over the next 6-12 months, thanks to lower operating costs and effective solutions.

But he said IPTV, Internet-based TV broadcasting technology, would require more time to take off in Thailand as operators needed a portable business model and greater bandwidth.

D-Link International Group posted consolidated revenue of US$1 billion in 2005, with a net profit of $51 million.

Of its total revenue, 260 million baht came from Thailand. The firm aimed to grow revenue by 30-40 percent in Thailand this year and shift its market share to 50-70 percent from 25-30 percent at present.

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