Thai operator True Corp is in talks with Myanmar-based ISP Yatanarpon Teleport (YTP) to start offering joint mobile services in the country.
True CFO Noppadol Dej-Udom told Reuters the company will need to seek approval from its board of directors if…
Thai operator True Corp is in talks with Myanmar-based ISP Yatanarpon Teleport (YTP) to start offering joint mobile services in the country.
True CFO Noppadol Dej-Udom told Reuters the company will need to seek approval from its board of directors if discussions are successful.
The Thai mobile player has a US$1.8bn war chest since listing its infrastructure assets late last year, although most of the proceeds are expected to be used to repay debt.
Meanwhile, YTP vice-chairman Yan Win reportedly said the whole project with True will cost around US$1.6bn, with YTP looking to hold a 51% stake in the potential JV. The companies will apply for a mobile licence in March, he added.
After decades of isolationist policies, Myanmar opened up to foreign investors in 2012. A few months later, it launched a mobile spectrum auction, which attracted 12 bidders.
With a population of around 60 million and mobile penetration below 10%, investment opportunities are promising despite hurdles such as the scarcity of existing infrastructure.
Norway’s Telenor and Qatar-based Ooredoo, which emerged as the auction winners last summer, received their licences only a few weeks ago.
They are now expected to start rolling out their networks in a country where their only existing rival is state-owned Myanmar Post and Telecommunication (MPT), which currently also serves as regulator.
MPT, which has a majority stake in YTP, is itself in the process of finding partners to expand its services.
Early this year, Japanese telco KDDI and conglomerate Sumitomo were reportedly in exclusive talks with MPT to share its existing licence.
Before that, reports emerged that Myanmar had contacted numerous international communications companies, including Orange, Vodafone and SingTel, about a potential partnership with MPT. French telco Orange, the runner-up in the hotly-contested June auction, subsequently said it would be “very keen” to enter into such a partnership.
