Japan’s KDDI and conglomerate Sumitomo Corp will establish a subsidiary in Myanmar to provide telecoms services together with state-owned Myanmar Posts and Telecommunications (MPT).
The two Japanese companies will first create a joint venture in…
Japan’s KDDI and conglomerate Sumitomo Corp will establish a subsidiary in Myanmar to provide telecoms services together with state-owned Myanmar Posts and Telecommunications (MPT).
The two Japanese companies will first create a joint venture in Singapore under the name KSGS with an expected capital of Y219.3bn (US$2.1bn).
This JV will then deploy joint operations with MPT in Myanmar.
Exclusive talks between KKDI and MPT were first reported in January. The Japanese operator is now set to become Myanmar’s third wireless player.
KDDI had been shortlisted for one of the two mobile licences Myanmar put up for auction last summer. The Japanese company eventually lost out to Norway’s Telenor and Qatar’s Ooredoo, which are both in the process of building infrastructure to roll out their networks.
Shortly after, MPT, which currently serves as the country’s telecoms regulator and sole operator, invited several foreign companies that participated in the auction to discuss a potential partnership. It later picked KDDI for exclusive discussions.
In a statement today, KDDI pointed to the growth opportunities in the country, which recently moved away from decades of isolationism, saying Myanmar has a mobile penetration rate of around 10% in relation to a population of around 65 million.
Myanmar’s government reportedly intends to establish a new regulator by 2015 and sell part of MPT, retaining a majority stake.
KDDI is number two in Japan, with approximately 40 million subscribers, and has mobile operations in Mongolia as well as an MVNO business in the US.
Sumitomo, a diversified conglomerate, is expected to bring in its expertise in leading infrastructure projects and claims to have a 60 year business record in Myanmar.
Separately, state-owned ISP Yadanarpon Teleport (YTP) could become the country’s fourth mobile operator. Earlier this year, the company was in talks with Thailand’s True Corp to provide joint mobile services in the country.
