BROADBAND THAILAND 2015 - Center for Ethics of Science and ...

Currently, the share of GDP of Thailand’s population earning3,000 to 15,000 baht is approximately 52%, using IFC data, andthe purchasing power is thought to be of similar proportion.Under the MB scenario, this purchasing power could rise by up to7% per year by 2015, causing a broadening of the domesticeconomy.AnalysisAs the low-income population generates demand for “mobilekiller apps,” they could save costs and develop new sources ofincome. The “wealth effect” could be substantial, adding as muchas 20% to total national purchasing power, based on data drawnfrom the International Finance Commission’s “Next Four BillionReport. 46 ” As their discretionary spending rises, a larger share oftheir incomes will be spent on ICTs, producing a multiplier effect,which in turn could stimulate domestic spending. The cumulativegrowth of purchasing power of the Thai “middle of the pyramid”(i.e., those who earn from 3,000 to 14,000 baht per year) couldbe sizable. The World Bank’s International Finance Commission’sNext Four Billion report in 2005 indicated that – per capitaspending on ICTs expands dramatically in middle incomecountries as wealth rises. 47 It is this data which causedQualcomm Corporation founder Irving Jacobs to say, “We do notexpect to make money on the first cell phone purchased by lowincomeconsumers. But as they use their phones, their incomerises and we benefit as a rising share of their income becomesdevoted to mobile upgrades.” The same data caused Microsoft’sExecutive Vice President Orlando Ayala to explain, “We’re in thenation-building business.”46 www.NextBillion.net47 www.nextbillion.netMeaningful Broadband Report 2.0 BROADBAND THAILAND 2015 39