Technological Migration: The Case of Thai Digital Terrestrial Television

Abstract

This study analyzes 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-yearlicense period indicate that a long transition period reduces the benefit from upgradingto a better technology. The incumbents would like to join the technological migration fromday one. The faster the transition process, the higher the new platform is worth in presentvalue. The government should terminate the old platform as soon as possible and stimulatea rapid transition.

Keywords: Technological migration, digital television, net present value

JEL Classification: M21, M38, O33