THAIS REWORK TELECOM POST-TAIWAN EARTHQUAKE

UNCLAS BANGKOK 000081

SIPDIS

SIPDIS

STATE FOR EB/CIP, EAP/MLS
STATE PASS USTR FOR JMCHALE
USDOC FOR 4430/EAP/MAC/OKSA

E.O. 12958:N/A
TAGS: ECON ETRD ECPS TH

SUBJECT: THAIS REWORK TELECOM POST-TAIWAN EARTHQUAKE



1. Thai telecom networks are recovering from the December 26
earthquake off Taiwan which damaged undersea cables that carry much
of Thailand's telecommunications to the U.S. and the rest of Asia.
The earthquake damaged the two main cables via Taiwan that link
Thailand to Korea, Japan, Europe and the U.S., cutting in half
Thailand's international traffic capacity and knocking out an
estimated 90 percent of Internet access in Thailand.


2. State-owned CAT Telecom, which handles international call
traffic and Internet service, was able to quickly reroute about 50
percent of the affected traffic to alternative routes in the Indian
Ocean and shifted another 20 percent of voice traffic onto
satellites. Internet service resumed, but is still operating below
normal bandwidth. CAT believes that one of the two main cables
through Taiwan should be repaired by January 12, allowing 80 percent
of capacity to be restored by the third week of January, and expects
to be back at 100 percent in February.


3. In the meantime, CAT is improving its international links to
avoid any future cut offs. CAT is investing in 300 extra Internet
connections through Indian Ocean cables and has been planning a new
cable link directly to the U.S. to be developed jointly with AT&T.
Telecom regulator National Telecommunications Commission announced
it would order the other state-owned telecom provider TOT to allow a
private Internet provider, True Internet, to temporarily connect to
foreign networks via TOT's facilities to provide an additional
outlet for data.


4. E-commerce in Thailand is still relatively underdeveloped and
few businesses would likely have been seriously affected by the
Internet slowdown. However, at least one local web-based travel
agency reported a decline in business as U.S. and European clients
were unable to access their site for some time. Nevertheless, the
Internet slowdown sparked a good deal of frustration among
businesses that have grown to depend on the Internet for news and
information in addition to doing business.
BOYCE