Edotco, the infrastructure services unit of Malaysia’s Axiata Group Berhad, intends to use some of its planned US$200m investment in Myanmar over the next five years to quadruple its number of towers. Building on the 1,250 masts acquired via its recent purchase of Myanmar Tower Company, edotco aims to construct 5,000 new towers in the emerging market over the next three years.
Edotco, the infrastructure services unit of Malaysia’s Axiata Group Berhad (MYX:6888), intends to use some of its planned US$200m investment in Myanmar over the next five years to quadruple its number of towers.
Speaking at edotco’s official launch in Myanmar, CEO Suresh Sidhu (pictured) said the company intends to build 5,000 towers over the next three years, adding to its current portfolio of 1,250 masts.
He said the company aims to become the largest towerco in the emerging market, where the number of telecoms towers is expected to grow from about 7,900 to 29,000 by 2024.
Sidhu said edotco and local partner, Singapore-based investment holding company Yoma Strategic Holdings (SGX:Z59), intend to build a high-quality telecoms network by introducing “sustainable and value-added services such as alternative energy solutions, dual-purpose structures and proprietary echo remote monitoring and management”.
He added that the company’s experience in other developing Asian countries well places it to “serve as a strategic partner to Myanmar”.
Last October, edotco agreed to buy a majority stake in Myanmar Tower Company (MTC) from Jamaica-based Digicel in a deal valuing the target at US$221m. According to edotco, MTC has 1,250 towers in mostly urban areas, a 15-year lease agreement with anchor tenant Ooredoo and a co-location ratio of 1.53x with 660 tenancies from Telenor and MPT.
Meanwhile, Yoma has received a loan of up to US$100m from ADB for a project to improve connectivity infrastructure in telecoms and other sectors in Myanmar.
Myanmar, which has a population of some 51 million, has seen the number of mobile subscribers more than triple since the telecoms sector opened up in 2013, when Qatar’s Ooredoo and Norway’s Telenor won licences. The two compete with MPT, a joint venture between the telecoms ministry and Japanese telco KDDI.
MTC’s competitors include Apollo Towers, Pan Asia Towers, Eco-Friendly Towers and Irrawaddy Towers.
Established in 2012, edotco claims to have some 16,000 towers across its core markets of Malaysia, Sri Lanka, Bangladesh, Cambodia and Myanmar, and 12,000km of fibre in Pakistan.
