Several leading companies have today announced they are taking part in Myanmar’s upcoming mobile licence process.
While British telco giant Vodafone and Chinese counterpart China Mobile have joined forces to bid for a licence, Carribean Digicel has…
Several leading companies have today announced they are taking part in Myanmar’s upcoming mobile licence process.
While British telco giant Vodafone and Chinese counterpart China Mobile have joined forces to bid for a licence, Carribean Digicel has teamed up with George Soros’ Quantum Strategic Partners and Singapore-listed Yoma Strategic Holdings.
After decades of isolation, Myanmar is currently undergoing a long-awaited political reform impacting many sectors, and in particular telecoms.
In a joint statement, Vodafone and China Mobile said: “The Myanmar communications sector is about to enter a period of rapid structural expansion as the government seeks to increase the number of mobile operators from two to four while taking measures to encourage and support the development of mobile network infrastructure across the country.”
Other foreign telcos, including Malaysia’s Axiata, SingTel and Sweden-based TeliaSonera are also reportedly eyeing a share of the Myanmar market.
With a population of around 60 million and mobile penetration below 10%, investment opportunities are promising. Buy hurdles exist, including the limited availability of financing to enter the market as well as the absence of a telecoms law (see TelecomFinance magazine 206).
It is not yet known when the licensing process will take place but Vodafone, China Mobile and Digicel said they submitted their pre-qualification application today, in line with the 4 April deadline set by the Myanmar authorities.
The two new licences will authorise holders to build, own and operate a mobile network across the country for an initial 15 years.
Vodafone and China Mobile first started working closely together in 2000 when the British company invested in the Chinese operator. Although Vodafone sold its China Mobile stake in 2010, the companies since then signed a strategic cooperation framework agreement.
