Myanmar BroadbandBurma Broadband
Support for broadband connections in Myanmar.
And Ooredoo is entering Myanmar's broadband industry
Yatanarpon Teleport has signed a broadband strategy with Ooredoo to deliver broadband throughout Myanmar. The Yatanarpon Teleport is one of the first teleport operators in the UK to deliver broadband access solutions to customers and businesses in Yangon, Mandalay and Pyin Oo Lwin. In recent month, the broadband price of the ISP has fallen significantly to keep pace with the advent of new ISPs.
It is not yet clear what this relationship means for Ooredoo and YTP. The news releases state that both parties will combine their efforts to offer the best web based solutions in the state. It will be available from 1 November in towns already served by the YTP grid and will spread quickly throughout the state.
YTP CEO U Soe Thein said: "This is a landmark in Myanmar's telecommunications sector with the best actors from related sectors gathering to deliver super-fast web service to the Burmese population. It is hypothesized that Ooredoo uses the YTP networking structure to deliver web service on a VNO-standard.
Telenor started its broadband service in Myanmar a year ago. This was accompanied by aggressively priced prices that re-defined the broadband rate in Myanmar. MPT started its FTTH service a few moths later at a similar rate. Initially, the offering was only available in the Pabedan Township. Early this weeks MPT announces that the Mandalay offering will be available and will be extended to new Yangon cities from next monthly.
Ooredoo's cooperation with YTP also enables it to enter the broadband world. This welcome expansion of their Myanmar PBX portfolios enables Myanmar's wireless carriers to quickly approach quads and catch up with APAC in ripe marketplaces.
Myanmar's broadband markets are panicking
At the beginning of August, MPT, which has the broadband customer base, started a new FTTH offering at an exceptionally competitive rate. However, this proclamation caused a ripple in the broadband industry and since then we have seen a number of unparalleled advertising campaigns. Through its " Shwe-Programm " Velink is offering a free of charge install.
Burma Speednet does not charge install costs and provides 2mbps for 49,000Ks per months. The Myanmar Speednet is definitely a good example of how crazy the broadband industry in Myanmar has become. In May 2017 Speednet began customer service. Back then, the new gamer was offering 2mbps for $95/month and demanded an install fee of $250.
Four and a half weeks later, the same provider waives all install charges and spends 2 Mbps for 49,000Ks/month. That' a discount of 160% in only 4 moths! Undoubtedly there is a surge of anxiety among Myanmar's services. The majority of them saw their commercial agendas break down when the number of licensees in the industry rocketed.
There are too many Internet Services Provider (ISPs), too few of them. The 4G rate go as quickly as 4G rate increases. In order to keep up their acceptance of customers and reduce losses, serviceproviders have to be aggressive in setting prices. The latest MPT announcement, which clearly expresses the strong intention to return to the broadband industry, makes it clear that fear is increasing among operators.
Although we firmly believe that the present pricing and transport levels are not sound and will have fatal consequences for most Myanmar-IPs. We' ve always pointed out that tariffs are a major obstacle to access, partly explaining the low uptake of broadband in Myanmar.
Not that we feel like repeating, but the reduction of the setup charge is one of the most important sales arguments which ISP' must use. To the fibre to the house, this entrance obstacle could be an impossibility. Our source says it cost between $100 and $150 to set up a one-time home fibre client in a house.
There is always the option of subsidising this set-up charge and recovering the return on the recurrent charge (monthly and/or yearly charge). But in Myanmar this may sound like a dangerous deal, considering that there is no system for recovering outstanding debts. In contrast to companies, the consumer is very disloyal and tends to leap from one promotions to another without taking their original commitments into account.
Subsidies lead to non-payment of receivables, i.e. there is a not inconsiderable likelihood that the funds will not be recovered. That is the major cause why it looks very risky when fibre optic operators like Myanmar Speednet or Welink waive entirely without installing it. If you know that the prizes are falling sharply and the contest starts the promotional campaign after the doctorate, there is a good possibility that the end user is not fully engaged and concludes a new agreement after a few month.
In Europe or the USA, where the company's yearly involvement is usually rewarded, the suppliers seldom give up fibre installations. It' definitely good to hear that broadband is at last available to Myanmar citizens. The present rate of prices reductions and promotion can, however, be damaging to the markets. It' s also more likely that services will decrease quickly as the provider will have to battle hard to ensure that the services are sustained and in line with its own cost.
It' s a pity to see that none of the current ISP' s have chosen to own "quality" instead of "price". And we can also deplore the fact that none of the current ISP' s have been able to offer more than one stupid line, Voice over IP and TV. IPS who want to live must stick to their goals and keep away from the sirensong of this stupid costlash.
Consumers' primary goal for ISP' should be tackiness, through the provision of value-added service, unparalleled value-added offerings, excellent tech supports, simple pay and ultimately a powerful trademark.