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Technological Migration: The Case of Thai Digital Terrestrial Television

Author

Listed:
  • Ratidanai Hoonsawat

    (Faculty of Economics, Chulalongkorn University, Bangkok, Thailand)

Abstract

This study analyses the business strategies of entrepreneurs during a technological transition. The particular technological transition is the switch from analogue to digital TV in Thailand. The estimated net present values of the broadcasting operators’ net profit over a 15-year license period indicate that a long transition period reduces the benefit from upgrading to a better technology. The incumbents would like to join the technological migration from day one. The faster the transition process, the higher the new platform is worth in present value. The government should terminate the old platform as soon as possible and stimulate a rapid transition.

Suggested Citation

  • Ratidanai Hoonsawat, 2013. "Technological Migration: The Case of Thai Digital Terrestrial Television," Applied Economics Journal, Kasetsart University, Faculty of Economics, Center for Applied Economic Research, vol. 20(2), pages 1-22, December.
    • Handle: RePEc:aej:apecjn:v:20:y:2013:i:2:p:1-22
    as

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    References listed on IDEAS

    as
    1. Jérôme Adda & Marco Ottaviani & Paul Seabright, 2005. "The transition to digital television [‘Balladurette and Juppette: A discrete analysis of scrapping subsidies’]," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 20(41), pages 160-209.
    2. Cambini, Carlo & Garelli, Nicola, 2011. "Evaluation of the opportunity cost of the spectrum: Application to the digital dividend," Telecommunications Policy, Elsevier, vol. 35(7), pages 633-649, August.
    3. Doyle, Chris, 1998. "Programming in a competitive broadcasting market: entry, welfare and regulation," Information Economics and Policy, Elsevier, vol. 10(1), pages 23-39, March.
    4. Simon P. Anderson & Stephen Coate, 2005. "Market Provision of Broadcasting: A Welfare Analysis," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 72(4), pages 947-972.
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    More about this item

    Keywords

    Technological migration; digital television; net present value;
    All these keywords.

    JEL classification:

    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics
    • M38 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Government Policy and Regulation
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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