Internet Thailand & Pre-paid Internet in Thailand Morragot Kulatumyotin Internet Thailand Public Company Limited November 21, 2001

Thailand Internet index 18 commercial ISPs 2 domestic Internet exchanges: CAT-NIX and NECTEC-IIR 642 Mbps total international bandwidth (in) 526 Mbps total international bandwidth (out) 3.5m Internet users As of Nov 01

ISP market in the country A-net Internet Asiaaccess Asianet Chamanan worldnet CS Internet Data Line Thai E-Z net Fareast Internet Idea Net Internet Thailand Jasmine Internet Loxinfo KSC Pacific Internet REACH (Thailand) Roynet Samart Internet Siam Global Access

Moving away from pure access to e-commerce Thailand Internet model still in the pure access stage Market moving towards content & application providers

Inet roadmap Granted first ISP license under the name ITSC Thailands first commercial ISP Established Internet Thailand Co., Ltd. Granted second ISP license under the name INET 1992 Received ISO 9002 from SGS Converted to Public Company Limited Privatization (Go Public) The Cabinet approved the establishment of Internet Thailand Co.,Ltd Evolved from the academic network run under the name ThaiSarn

Shareholders structure PublicNSTDA CAT TOT Employees 17% 16% 7% 44% No. of shares : 250 Million shares

Nature of business Internet Service Provider (ISP) E-business Infrastructure Provider

Core services Connectivity Internet Data Center – IDC/hosting – ASP – Colocation – collaborative commerce – e-commerce

Company infrastructure IIR (NECTEC) A-Bone (Japan) TeleGlobe (USA.) IIG (AT&T network) NIX (CAT) Inets Backbone 200 Mbps 512 Kbps 45 Mbps (cable) 2 Mbps (cable) 8 Mbps (cable) Domestic ConnectivityInternational Connectivity

Business vision The companys vision is to become the

Performance

Pre-paid Internet in Thailand

Dialup service evolution in Thailand Monthly basis service Pre-paid and pay per use basis service Time-zone basis service Unlimited basis service Free Internet

Inet implementations In-house development In 3 years since market launch, there is no successfully cracked ticket. (use strong encryption algorithms) about the same time as prepaid cell phone co-branding

Nationwide coverage

CAT pricing regulation Individual services – monthly basis: start up B.300, monthly B.900/20 hours, extra charge B.40/hr. – prepaid: B.600 for 10 hours, >= 10 hours = B.50/hr. This is a ceiling. There is no minimum rate. (after Sep 4, 97) (did not reflect market reality)

Pricing evolution Monthly basis – 900 baht/20 hours/month = 45 baht/hr. pre-paid basis – 1998: baht/hr. – 1999: baht/hr. – 2000: baht/hr. – 2001: 3-15 baht/hr.

Performance Net profit grows 3-fold in 3 years

Unlimited basis – baht/month at 1-5 hours/session Free Internet – domestic only (TOT)

Where to buy, where to pay? Via vendors (book shop, retail store, convenience store) Via mobile phone (WAP) Via banking services

Via web site (package, refill) Via credit card/e-commerce Via ATM machine

Why is pre-paid Internet popular in TH? synergy convenience, can buy anywhere many package sizes flexible/ fair usage no commitment to ISP positive cash flow varied distribution channels USER ISP