Financial Analysis of Thai Internet Service Providers
Rear Admiral Prasart Sribhadung Assumption University
Abstract
This paper analyzes the financial status of Thai Internet Service Providers (ISP) after ten years of operation. The bulk of financial information is derived from the online database of Business Online Company Ltd. maintained as a concession from the Ministry of Commerce. The result shows that Internet usage in Thailand is increasing, and the report confirms that revenue of ISPs are increasing, but also increasing is the operating cost of ISP services. As a result, the majority of ISPs are not making profit.
1. Commercial Internet Service Provider
The first ISP that was a company limited was actually KSC Commercial Internet that received its license from CAT on the 31st October 1994, registered its joint venture with CAT on the 21st December 1994, and officially launched in May 1995.
After the first two ISPs started operation, sixteen more were granted licenses to operate Internet services by CAT, resulting in eighteen licensed ISPs in 1999. Internet Thailand changed status to company limited in May 1997, then to public company in September 2001. Apart from the eighteen ISPs with legal operating licenses, there are presently several ISPs operating without license. Among them, TOT Corporation and CAT Telecom Public Company, the two former government telecommunication agencies privatized, became business companies limited and later public company limited in 2002 and 2003 respectively.
2. Research Objectives
It has been openly speculated all along since the early days of ISPs in Thailand that most of the ISPs with few exceptions are not making any profit since they started operation. Nobody really knew the truth, how bad the situation was, or what was the cause, but some ISP ceased operation, and some sold out their businesses. So, the objective of this research is to verify whether the speculation is true, if true how serious is it, and find out whether it is because there is no growth in Internet usage, or due to some other problems. Several hypotheses are formulated as follows: H1 - There is no growth in Internet Usage, H2 - There are no increases in Internet revenue, H3 - There is an increase in Internet operating cost, H4 - There is a decrease in Internet profit, H5 - Most ISPs are experiencing accumulated losses.
3. Research Methodology
This is an Archival Research, gathering ISPs’ financial information from digital databases and printed documents, covering from year end 1996 to 2004. All registered companies in Thailand including all ISPs must submit their financial reports to the Department of Commercial Registration, Ministry of Commerce every year by May of the following year. All those financial data are digitized and developed into an online database for the Ministry by a business company by the name of “Business Online Company Limited”. They are also allowed to
commercialize the service to the public on a concession contract with the Ministry. The Author was the Managing Director of this company from its early days of establishment and finalized the contract with the Ministry in 1995. Digitizing of the financial raw data of the registered companies and developing the application software “Bingo” took more than two years, and became available to the public in 1997.
4. Target Population
Communication Authority of Thailand have issued ISP licenses to eighteen companies up to the day they privatized. The last license was issued in 1999. Of the eighteen ISPs, one has ceased operation, some have sold their business and changed names, some have merged with other business and increased their capital making it difficult to identify Internet service, and some have incomplete report or are unsearchable in “Bingo”, so they will not be included in the research population. The sample size will therefore be the whole population of seventeen ISPs.
5. ISP Financial Information
Each ISP is searched in the order it started operation for its financial information by accessing “Bingo” application of Business Online company limited, from 1996 to 2004. The required raw data are collected, arranged, tabulated, graphed, analyzed to transform into information, and the results are interpreted and used to verify the hypotheses. The researched information test the five hypotheses from the research objective.
5.1 Internet Thailand started as THAISARN Internet Services in January 1994,a joint venture between the National Science and Technology Agency, the Telephone Organization of Thailand, and the Communication Authority of Thailand, became Internet Thailand in May 1995 still a government agency not a registered company limited until May 1997, capital 15 million baht. It later in 2001 became a public company limited, capital 345,833,333 baht. Its financial report to the Ministry started in 1997 with 30,000 baht loss. After that it reported significant increase in revenue, cost, and profit. Its accumulated profit in 2004 is 473,505,199 baht
Table 5.1 Internet Thailand
Revenue Cost Profit Accu. Profit 1997 0 30,000 -30,000 -30,000 1998 140,137,909 115,572,487 24,563,422 24,533,422 1999 214,162,883 161,384,378 52,778,505 77,311,927 2000 309,983,756 258,819,257 51,164,499 128,476,426 2001 428,583,425 355,416,776 73,166,649 201,643,075 2002 596,566,636 516,111,335 80,455,301 282,098,376 2003 674,385,385 579,859,808 99,525,577 381,623,953 2004 702,153,666 610,272,420 91,881,246 473,505,199
5.2 KSC Commercial Internet the second ISP but was really the first company limited ISP registered 21st Dec.1994. The first ISP joint venture with CAT as free shareholder of 33%, and Internet Knowledge Service Center as the major shareholder, capital 15
million. From the start in 1995, it recorded profit six consecutive years to 2000 amounting to 54,648,655 baht. Then it was sold to MWEB and started losing heavily, and in 2004 its accumulated losses were 104,811,356 baht.
Table 5.2 KSC Commercial Internet
Revenue Cost Profit Accu Profit
1995 11,177,008 10,981,687 195,321 195,321 1996 77,524,790 74,638,018 2,886,771 3,082,092 1997 107,308,825 106,979,971 328,854 3,410,946 1998 149,734,392 137,639,051 12,095,341 15,506,287 1999 292,196,707 275,817,229 16,379,478 31,885,765 2000 438,928,140 416,165,250 22,762,890 54,648,655 2001 468,510,234 502,869,991 -34,359,757 20,288,898 2002 420,855,937 520,919,139 -100,063,202 -79,774,304 2003 571,761,001 570,499,746 1,261,255 -78,513,049 2004 666,487,212 692,785,519 -26,298,307 -104,811,356
5.3 ANET was registered on the 8th Dec.1995, joint venture of AR Group, Bangkok Bank, and CAT as free shareholder of 33%, started ISP operation in 1996 with 15 million baht in capital. The first two years registered losses accumulated to 15,051,703 baht. It made profit the next two years approaching near the break-even point, but
registered three more years of losses, accumulated to 36,335,132 baht in 2002. Both ANET’s revenue and operating cost decreased during the last tree years resulted in making profit in the last two years and reduced its accumulated losses to 17,161,546 baht.
Table 5.3 ANET
Revenue Cost Profit Accu Profit
1995 0 7,749 -7,749 -7,749 1996 4,158,042 13,341,722 -9,183,681 -9,191,430 1997 39,152,265 45,012,538 -5,860,273 -15,051,703 1998 56,419,698 51,528,351 4,891,347 -10,160,356 1999 134,213,282 126,841,564 7,371,718 -2,788,638 2000 205,446,103 212,401,642 -6,955,539 -9,744,177 2001 228,719,120 246,418,854 -17,699,734 -27,443,911 2002 158,793,286 187,684,287 -28,891,001 -36,335,132 2003 144,976,411 136,085,190 8,891,221 -27,443,911 2004 117,167,112 106,884,747 10,282,365 -17,161,546
5.4 C.S. Communications was registered on 20th July 1994 as satellite communication business with 10 million in registered capital, and received ISP license in 1997 with 500 million in registered capital. It is a subsidiary of Shinawat and Communication Group with Shinawat Satellite Public Company the major shareholder with 50.99% and CAT 49%. On 26th November 2003, it merged with Loxley Information Services and became CS Loxinfo Public Company Limited with 639,569,774 baht registered capital. Internet
financial data will be taken from 1997 because prior to that it had not started ISP operation yet. Data from Table 5.4 must be used with caution, because it includes both satellite communication and Internet services. Nevertheless, before the merger and entering the stock market, 1998 was the only year it made a small profit, the rest was huge losses accumulating to the peak of 562,915,145 baht losses. Two years as a Public company, profits were registered reducing its accumulated losses to 156,451,477 baht in 2004.
Table 5.4 CS Communications/CS Loxinfo
Revenue Cost Profit Accu Profit 1997 90,054,693 142,156,638 -52,101,945 -52,101,945 1998 211,665,660 204,208,991 7,456,669 -44,645,276 1999 243,938,408 388,586,215 -144,647,807 -189,293,083 2000 495,078,469 566,802,433 -71,723,964 -261,017,047 2001 577,672,670 733,904,307 -156,231,637 -417,248,684 2002 551,200,256 696,866,717 -145,666,461 -562,915,145 2003 754,205,326 675,981,687 78,223,639 -484,691,506 2004 1,339,701,275 1,001,461,246 328,240,029 -156,451,477
5.5 Info Access/Jasmine was registered on 29th January 1996 with Wattajak the major shareholder and CAT free share of 33%, capital 15 million baht. In exchange for the ISP license, it signed a contract to comply with CAT’s term for 10 years on 14th March 1996. It recorded five years of losses totaling
52,691,530 baht, then was sold to Jasmine International Public Company in 2000, and changed name to Jasmine Internet. After the change of management, losses decreased significantly and finally turned to profits and increasing, lowering the accumulated losses to 15,475,433 in 2004.
Table 5.5 Info Access/Jasmine Internet
Revenue Cost Profit Accu Profit 1996 3,034,430 10,475,730 -7,441,290 -7,441,290 1997 11,295,060 24,372,310 -13,077,450 -20,518,740 1998 18,230,790 25,714,510 -7,483,720 -28,002,460 1999 29,232,230 39,188,090 -9,955,860 -37,958,320 2000 79,961,140 94,694,350 -14,733,210 -52,691,530 2001 118,300,990 119,561,110 -1,260,120 -53,951,650 2002 148,223,360 147,242,740 980,620 -52,971,030 2003 211,246,520 198,008,260 13,238,270 -39,732,760 2004 326,933,224 302,675,897 24,257,327 -15,475,433
5.6 Loxley Information Services registered on 19th February 1996 with Loxley Public Company as major shareholder, CAT with 32%freeshares of the capital 15 million. It started with very high operating costs, recorded profit in the third year 1998, but
after that suffered huge amount of continuous losses accumulated to a record of more than 329 million in 2002, far beyond its registered capital. The situation was rectified with two years of profits reducing its losses to 168 million.
Table 5.6 Loxley Information Services
Revenue Cost Profit Accu Profit 1996 66,022,315 76,211,321 -10,189,006 -10,189,006 1997 123,656,613 168,626,373 -44,969,760 -55,158,766 1998 224,314,731 217,072,700 7,242,031 -47,916,735 1999 331,617,479 347,136,844 -15,519,465 -63,436,200 2000 444,983,940 591,789,271 -146,805,331 -210,241,531 2001 613,338,594 718,778,531 -105,439,937 -315,681,468 2002 681,254,763 694,829,625 -13,574,862 -329,256,330 2003 744,884,004 633,175,610 111,708,394 -217,547,936 2004 562,998,997 513,659,952 49,339,045 -168,208,891 5.7 Asia Infonet/True Internet
registered on 7th March 1996 with CP Group as major shareholder, CAT 32% free shares totaling 15 million in capital. Operated with losses for three years normally, accumulated
loss to almost 89 million. Then it recovered and made profit steadily every year ended 2004 with 37.5 million accumulated profit. Its name has changed to True Internet.
Table 5.7 Asia Infonet/True Internet
Revenue Cost Profit Accu Profit 1996 511,045 3,491,108 -2,980,063 -2,980,063 1997 14,032,145 70,202,327 -56,170,182 -59,150,245 1998 53,115,939 82,899,416 -29,783,477 -88,933,722 1999 126,461,155 118,035,084 8,426,071 -80,507,651 2000 150,364,120 134,316,455 16,047,665 -64,459,986 2001 244,106,564 213,764,607 30,341,957 -34,118,029 2002 356,479,322 323,944,705 32,534,617 -1,583,412 2003 548,366,235 512,991,370 35,374,865 33,791,453 2004 809,057,396 805,346,210 3,711,186 37,502,639
5.8 Asia Access/IEC Internet registered on 12th March 1996 as INET (Thailand) Co. Ltd. with M Group as major shareholder and CAT free share 32% of 15 million capital. Operated normally with first three years of
losses accumulated to 55.5 million. Started making profit in 1999 to 2000, but then plunged back to continuous losses accumulated to 89 million. Its name was changed to IEC Internet.
Table 5.8 Asia Access/INET(Thailand)/IEC Internet
Revenue Cost Profit Accu. Profit 1996 6,157,977 22,420,178 -16,262,201 -16,262,201 1997 19,548,522 50,900,682 -31,352,160 -47,614,361 1998 29,732,316 37,573,020 -7,840,704 -55,455,065 1999 39,631,342 35,393,596 4,237,746 -51,217,319 2000 48,330,225 44,248,224 4,082,001 -47,135,318 2001 26,044,078 50,352,272 -24,308,194 -71,443,512 2002 22,481,607 36,952,266 -14,470,659 -85,914,171 2003 39,597,167 42,647,668 -3,050,501 -88,964,672 2004 34,384,241 47,808,736 -13,424,495 -102,389,167 5.9Samart Infonet registered on 5th March
1996 with Samart Corporation as major shareholder and CAT free shares 32% with capital 15 million. It operated in the red zone
consistently, accumulated huge losses to 281.7 million far beyond its registered capital.
Table 5.9 Samart Infonet
Revenue Cost Profit Accu. Profit 1996 2,343,281 24,446,484 -22,103,202 -22,103,202 1997 28,965,332 68,030,810 -39,065,478 -61,168,680 1998 55,834,179 85,005,152 -29,170,983 -90,339,663 1999 90,150,345 123,828,803 -33,678,458 -124,018,121 2000 150,945,053 163,290,920 -12,345,867 -136,363,988 2001 128,318,353 180,910,752 -52,592,399 -188,956,387 2002 115,960,466 163,175,640 -47,215,174 -236,171,561 2003 125,844,494 149,682,745 -23,838,251 -260,009,812 2004 126,038,684 147,697,671 -21,658,987 -281,668,799 5.10 World Net and Services registered
on 10 April 1996 with UCOM major shareholder and CAT 32% free shares totaling 15 million in capital. Started with loss first year but revenue jumped unrealistically to 109.6 million resulting in
profit in 1998 (incorrect information is being checked). Otherwise, it is registering huge losses every year except 2004, accumulating losses to 245.4 million. Pacific Internet (Thailand) bought the shares from UCOM and is presently the major shareholder. Table 5.10 World Net & Services
Revenue Cost Profit Accu Profit 1997 10,254,641 42,853,130 -32,598,489 -32,598,489 1998 109,631,668 47,197,422 62,434,246 29,835,757 1999 41,363,839 133,614,392 -92,250,553 -62,414,796 2000 41,363,839 133,614,392 -92,250,553 -154,665,349 2001 50,473,848 127,065,420 -76,591,572 -231,256,921 2002 86,155,107 112,726,519 -26,571,412 -257,828,333 2003 183,088,348 189,263,770 -6,175,422 -264,003,755 2004 272,083,135 253,461,777 18,621,358 -245,382,397
5.11 Data Line Thai registered on 13th May 1996 with Datamat as major shareholder and CAT free share 32% totaling 15 million in capital. Operated as a small ISP registered small losses every year until 2003 accumulated to 59.7 million. In 2004, its
operating cost dropped by 75%(unrealistic) resulting in a huge profit of 45.5 million, thus reducing the accumulated losses to 14 million. Datamat sold all its shares, and now has Shin Corporation as the major shareholder.
Table 5.11 Data Line Thai
Revenue Cost Profit Accu Profit 1996 66,785 2,951,552 -2,884,767 -2,884,767 1997 1,267,264 8,134,799 -6,867,535 -9,752,302 1998 3,714,120 6,554,885 -2,840,765 -12,593,067 1999 5,130,369 7,847,102 -2,716,733 -15,309,800 2000 8,813,649 9,005,665 -192,016 -15,501,816 2001 17,423,524 38,248,431 -20,824,907 -36,326,723 2002 39,823,009 56,388,002 -16,564,993 -52,891,716 2003 14,255,087 21,020,844 -6,765,757 -59,657,473 2004 51,372,260 5,830,144 45,542,116 -14,115,357 5.12 Idea Net registered on 2nd September
1996 with Idea Corporation the major shareholder and CAT 32% free shares,
capital 15 million. Operated as a small scale ISP mostly in the red, accumulated 74.5 million in losses.
Table 5.12 Idea Net
Revenue Cost Profit Accu. Profit 1997 3,286,390 14,018,039 -10,731,649 -10,731,649 1998 9,109,668 8,215,802 893,867 -9,837,782 1999 8,003,452 10,684,021 -2,680,569 -12,518,351 2000 3,866,867 16,917,709 -13,050,842 -25,569,193 2001 8,076,400 30,156,360 -22,079,960 -47,649,153 2002 13,737,577 27,672,873 -13,935,296 -61,584,449 2003 18,402,502 22,801,686 -4,399,184 -65,983,633 2004 16,546,176 25,021,151 -8,474,975 -74,458,608 5.13 Siam Global Access/Internet
Service Provider registered on 13 September 1996 with Siam TV as major shareholder and CAT free shares 32% capital 15 million. Operated as a medium scale ISP, recorded losses in the first two years, then
made profit for two years almost reaching break-even point in 1999. After that suffered losses continuously and accumulated 89.7 million in losses. It changed major shareholder to Wongwatanasin family and renamed as Internet Service Provider.
Table 5.13 Siam Global Access/Internet Service Provider
Revenue Cost Profit Accu. Profit
1996 237,127 1,014,361 -777,234 -777,234
1997 12,002,616 15,557,553 -3,534,937 -4,312,171
1999 41,728,303 40,396,034 1,332,268 -302,128 2000 34,878,029 39,983,239 -5,105,210 -5,407,338 2001 38,873,787 50,598,647 -11,724,860 -17,132,198 2002 40,399,420 64,628,596 -24,229,176 -41,361,374 2003 90,093,528 110,884,433 -20,790,906 -62,152,280 2004 155,736,757 183,236,641 -27,499,884 -89,652,164 5.14 Chomanan Worldnet registered on
9th November 1995 with Chomanan Group family business as major shareholder and CAT free shares 32% total capital 15 million. Did not have any activity for two
years, then in 1997, operated with a very low profile as a small scale ISP, registering losses every year until 2001,accumulated to 33.2 million.
Table 5.14 Chomanan Worldnet
Revenue Cost Profit Accu. Profit
1995 0 9,400 -9,400 -9,400 1996 0 14,000 -14,000 -23,400 1997 606,399 1,066,433 -460,034 -483,434 1998 1,681,373 8,743,976 -7,062,603 -7,546,037 1999 3,522,414 12,324,079 -8,801,665 -16,347,702 2000 1,266,060 9,967,436 -8,701,376 -25,049,078 2001 598,677 8,776,307 -8,177,630 -33,226,708 5.15 Far East Internet registered on
19 November 1996 with Inter Far East Engineering (Public) company as major shareholder and CAT free shares 32% of
capital 15 million. It operated a small scale ISP totally in the red zone, accumulated loss to 27.3 million in 2004.
Table 5.15 Far East Internet
Revenue Cost Profit Accu. Profit
1996 0 1,626 -1,626 -1,626 1997 1,175,034 3,538,129 -2,363,095 -2,364,721 1998 7,525,172 9,102,939 -1,577,767 -3,942,488 1999 7,841,137 9,492,830 -1,651,693 -5,594,181 2000 10,337,523 14,787,122 -4,449,599 -10,043,780 2001 7,552,746 10,439,747 -2,887,001 -12,930,781 2002 2,768,616 7,059,522 -4,290,906 -17,221,687 2003 3,632,940 9,705,781 -6,072,841 -23,294,528 2004 6,739,140 10,842,315 -4,048,425 -27,342,953 5.16 E-Z Net registered on 15 February
1999 with the Indian family Naruela as major shareholder and CAT free share 32% capital 15 million. Operated as a family
business tiny scale ISP, always in the red zone, accumulate 27.3 million losses in 2002, then no more financial report was available.
Table 5.16 E-Z Net
Revenue Cost Profit Accu. Profit 1999 100,000 9,030,486 -8,930,486 -8,930,486
2000 2,551,403 9,798,001 -7,246,598 -16,177,084
2001 2,336,221 9,636,413 -7,300,192 -23,477,276
2002 647,652 4,488,128 -3,840,476 -27,317,752 5.17 Pacific Internet registered on 25
January 1999 a joint venture of Singapore and Thai business with no record of CAT
being a shareholder, capital 188,176,100 baht in capital. It accumulated losses most of the time, accumulated to 209.6 million. Table 5.17 Pacific Internet (Thailand)
Revenue Cost Profit Accu Profit
1999 26,549,790 23,596,600 2,953,190 2,953,190 2000 71,126,255 166,071,864 -94,945,609 -91,992,419 2001 27,823,772 111,770,507 -83,946,735 -175,939,154 2002 16,763,431 53,382,282 -36,618,851 -212,558,005 2003 25,688,820 34,513,970 -8,825,160 -221,383,165 2004 46,645,420 34,876,805 11,768,615 -209,614,550 6. Financial Analyses
There are several variables that can be used as indicator of Internet growth, e.g. Internet Users, Internet Revenue, Internet Domains, and both Internet International and Domestic Telecommunication Links used in Thailand.
6.1 Internet Users
When dial-up Internet access was established in 1992, only 200 were registered
When true Internet gateways were setup it grew rapidly, to 8000 then 23000 users in two years. In 1995, when the two first commercial ISP started their operation, it almost doubled to 45000. The following four years, Internet users tripled each year, resulted from the entry of sixteen more ISPs, to 1.5 million users in 1999. No more ISP license was granted which coincided with a diminishing increase rate to 6.97 million users (16% increases) in 2004. There is definitely growth in Internet usage, H1 is not true and is rejected.
Table 6.1 Internet Users (M)
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 0.2 8 23 45 70 220 670 1500 2300 3500 4800 6000 6970 3900% 187% 96% 55% 214% 205% 124% 53% 52% 37% 25% 16%
6.2 Internet International Telecommuni- cation Links have been the main part of the operation cost for all ISPs, approximately half. It is the most important of ISP operation because it determines the quality of Internet service, and must increase with the number of customer. Table 6.2 shows that it has been
increasing all the time to 2,398 Mbps in 2004. There is definitely growth in Internet usage, H1 is not true and is rejected. But the percent increase has been greater than the increase of Internet users in Table 6.1 which can result in higher cost than revenue.
Table 6.2 Int. Links (Mbps)
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2.6 10.3 32.5 37 118 268 642 1011 1438 2398
6.3 Internet Revenue have been increasing every year, but with a diminishing rate. The last two years recorded positive rate to 5,253
million baht. There is definitely increase in Internet revenue, H2 is not true and is rejected.
Table 6.3 Revenue (millions)
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 11 160 463 1100 1636 2498 2995 3289 4116 5253 1354% 189% 138% 49% 53% 20% 10% 25% 28%
6.4 Internet Operating Cost have been increasing every year with some fluctuations, and recorded positive rate the last three years
to 4,763 million baht in 2004. H3 is true and accepted.
Table 6.4 Operating Cost (millions)
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 11 229 761 1063 1863 2883 3530 3666 3907 4763 1982% 232% 40% 75% 55% 22% 4% 7% 22%
6.5 Internet Profit/Loss
Table 6.5 shows the net profit in row two and accumulated profit in row three. With the exception of 1998, 2003, and 2004, the ISP sector was doing badly. The
accumulated losses increased alarmingly all seven years of operation to 11,855 million baht in 2002. The last two years showed very promising trend with significant profits, reducing the accumulated losses to 1,107 million baht. H4 is true and accepted.
Table 6.5 Profit/Loss (millions)
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
0 -69 -298 37 -227 -385 -535 -377 259 490
0.195 -69 -368 -331 -558 -943 -1478 -1855 -1596 -1107
7. Summary
7.1 Individual ISP Performances
ISP Financial Information of the seventeen ISPs indicate alarming results which confirm that most ISPs are experiencing accumulated losses and H5 is accepted.
(a) Internet Thailand is an ISP with some special privileges, because it was a government agency from start, and all shareholders paid their own share including CAT. It started with a very tiny loss (30,000 baht), which was a bit unrealistic for a new star-up business, then recorded huge profits every year, accumulated profits to 473.5 million. It
is the only one of eighteen ISP making huge profits with stability.
(b) KSC the pioneer company limited ISP to joint venture with CAT (32% free shares of 15 million) was even more unrealistic, made profit from the first year of operation and continued for six years then suffered significant losses and ended with a sizable accumulated loss.
(c) ANET operated normally, started making profit the fourth and fifth year approaching the break-even point, then three years of huge losses, after that recovered with two years of profit. It is still in the reds.
(d) C.S. Communications started as an ISP in 1997 a little bit different from other
ISPs, not a joint venture with CAT and a registered capital of 300 million. Its financial information is unclear how much belonged to Internet services, because it is also a telecommunication service provider. Nevertheless, both losses and profits was recorded in huge numbers, recovering towards 2004 still in the red area of nine digits.
(e) Info Access finances was fluctuating during its first six years of operation between high losses and low losses accumulating to almost 54 million. Jasmine International Public Company bought the company and changed name to Jasmine Internet, and last three years made profits reducing its accumulated losses.
(f) Loxley Information Services suffered losses almost every year accumulated to more than 329 million, but reduced that in the last two years to 168 million in red.
(g) Asia Infonet operated normally with losses the first three years and thereafter made steady profits accumulated to 37.5 million. Changed its name to True Internet.
(h) Asia Access operated normally with losses the first three years, thereafter made two years of profits, then continuous losses accumulated to 102.4 million, never left the red zone. The name was changed to IEC Internet. (i) Samart Infonet operated steadily and
consistently in the red zone every year, accumulated huge losses to 281.7 million.
(j) World Net and Services accumulated huge losses to 245.4 million.
(k) Data Line Thai operated as a small scale ISP, made small losses yearly, accumulated to 59.7 million in 2003, but strangely reduced to 14 million in 2004.
(l) Idea Net one of the small scale operator recorded losses every year
except one, accumulated 74.5 million in losses.
(m) Siam Global Access a medium scale ISP operated to almost break-even point in four years then suffered continuous losses to 89.7 million. It later changed management and renamed Internet Service Provider.
(n) Chomanan Worldnet a small scale operator, accumulated losses 33.2 million.
(o) Far East Internet a small scale operator, accumulated losses 27.3 million.
(p) E-Z Net a tiny scale ISP family operation, accumulated losses 27.3 million.
(q) Pacific Internet accumulated losses 209.6 million.
7.2There is growth in Internet usage H1 is rejected.
7.3There is increase in Internet revenue
H2 is rejected.
7.4There is increase in Internet operating costs H3 is accepted.
7.5There is decrease in Internet profits H4 is accepted.
References
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2. NECTEC, Thailand ICT Indicators 2005, Survey Report, Feb 2005.
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Telecommunication Forum, ETRI, Taejon,
Korea, 28-29th October.
4. www.bol.co.th, BINGO Service, Business
Online Public Company Limited, Online Information. 2005.
5. www.zakon.org, Zakon, Robert Hobbes,
Hobbes’ Internet Timeline v8.0, The Zakon Group LLC, 2005.
