Myanmar Teleport and CommunicationTeleport and Communication in Myanmar
Given that the store is nearing readiness for the launch, a significant deceleration in economic activity is forecast for the next five years until 2022. There is still a very low level of development in the landline network penetration rate, mainly due to the predominance of the wireless network and the lack of willingness of carriers to investment in solid landline infrastructures. In recent years, there has been very vigorous expansion of wireless penetration, which has been fuelled by the fast pace of expansion in the wireless area.
For the next five years, the company forecasts rapid economic expansion, but this is slowing down due to growing readiness for the markets. Restricted space requirements of national landlines and restricted PC accessibility have kept the spread of landline bandwidth to a minimum, but have generated a high level of interest in smartphone based mobile datastream.
However, this shortfall is quickly closed, with a particular emphasis on providing mobility to people. In recent years, the number of cell phone providers has risen from one to four. There is still a very low level of development in the landline network penetration rate. In recent years, there has been very rapid expansion in the field of wireless access.
Municipal syndicate applies for Myanmar's forth license of teleco
The Yatanarpon Teleport (YTP) is working with a joint project to build a syndicate of community members to apply for Myanmar's much sought-after 4th Telecom Operators License, YTP CEO U Shane Thu Aung said. In 2012, after years in which the telecoms market was ruled by the state Myanma Posts and Telelecommunications (MPT) regime, civil servants endorsed government proposals to overhaul it.
Following an inter-national call for tenders, licenses were awarded to the Norwegian companies Telenor and Ooredoo in Qatar in June 2013. The state-run news service said the goverment would also licence "two municipal companies - Myanma Posts and Telecommunications and Myanma Economic Corporation as a jointventure and the other Yatanarpon Teleport Co, which will transform itself into a stock corporation".
There has been no formal proclamation since then, despite speculations that there will be a forth operating company - a fifth, although partly Armed Forces-owned one. During 2014, YTP conducted talks with a number of prospective global partners-including Malaysia's Axiata Group and Thailand's True Corporation Public Company.
"We' re setting up a new syndicate under the leadership of a board of directors, including the MCIT Vice Secretary of the Ministry of Communications and Information Technology, and we are working to make the moves accurate and transparent," said U Shane Thu Aung. "A second step will be the establishment of a JV with a non-German counterpart, which will be carried out in a clear competition according to the directives of the Administrative Committee," he said.
Consortia are needed to make sure that the 4th operators are very effective in decision-making and good business practices, said U Shane Thu Aung. There is a strong demand for access to Myanmar's undeveloped telecom sector. By 2013, when the goverment was inviting EOIs from multinational corporations for two concession licenses, a combined of 91 overseas corporations and consortia had filed applications.
Whereas a 100 per cent owner is allowed under a global license, the 4th license is reserved for a domestic enterprise, which means that global investment is only allowed to own up to 49 per cent. In addition, the new operators will have to find between 1 and 2 billion dollars to be able to seriously competing in the busi ness.
The costs for the license alone are estimated at around 450 million dollars. "For YTP, the capital expenditure pattern would have led the investor to allocate more than $1 billion in exchange for a 49% share. It' was hard because anyone who invests this amount of money obviously wants a high level of controllability and comfort," said a resource near one of YTP's potential global allies.
Only a few domestic enterprises are able to generate this amount of funds without an overseas business associate. The formation and approval of the syndicate, the securing of the jointventure partners and the granting of the license are expected to take some considerable amount of work. Meanwhile, after just launched last summer, Telenor Myanmar declared a total of 6. 4 million subscriptions by the end of the first quarter of 2015, of which 58 pc were live date subscribers, and Ooredoo Myanmar reported 3. 3 million subscribers by the same date.
"Results for global players are very promising, so the 4th player should be very interested in getting going in view of growing markets. Obviously everyone else is making money," said a Telenor stock analysts at an investment banking firm. There are others who are in agreement that the forth incumbent has a good prospect of succeeding.
Secondly, a third carrier arriving at a later date could reach a 20 percent stake if the business is well managed," said a manager of a Myanmar telecommunications tour operators. Formerly known as Bagan Cybertech, it was later re-named Myanmar Teleport. It was re-named Yatanarpon Teleport in 2007 as a consequence of a jointventure between MPT and a number of privately owned businesses.
In July last year, the Japanese KDDI Corporation and Sumitomo Corporation entered into a collective plant contract with MPT to become Myanmar's third owner, with the goal of up to $2 billion in ten years. It is made up of two regional partners: The Myanmar Information and Communication Technology Development Corporation und A1 Construction Company.