It is compounded by lower labour costs for cheap manufacturing in China and India. Then there is the human element. Thailand graduates only 5,000 IT specialists a year. TDRI's Somkiat says there are virtually no specialists that can configure or maintain complicated software. So it's a long laundry list of IT woes that Thaksin's government must address if Thailand is to bridge its digital divide.
Analysts agree the most essential task in unleashing Thailand's IT potential is a regulatory purge.
Presently the CAT has monopoly control over international Internet connections. Clearing market distortions would let the real cost of the Internet prevail. That would be the first step towards perpetuating an IT frame of mind while allowing Thai firms to claw back the productivity gains their competitors have achieved over the last three years. Speed and financial prudence are what Thaksin's IT team claims to champion. Now there is too much cost added.