Swedish incumbent TeliaSonera is weighing up a move into Myanmar according to its CEO Lars Nyberg.
Speaking at the telco’s Q3 results announcement, recently appointed Nyberg said he could see a future for TeliaSonera in the country following the fall…
Swedish incumbent TeliaSonera is weighing up a move into Myanmar according to its CEO Lars Nyberg.
Speaking at the telco’s Q3 results announcement, recently appointed Nyberg said he could see a future for TeliaSonera in the country following the fall of diplomatic and economic barriers.
“We are looking at it – it will take us a year to come to the conclusion and it will take another two years to build up a network,” Nyberg said.
“It’s an opportunity – it is a virgin country – and the political situation has changed quite dramatically in the last 12 to 18 months,” he said.
TeliaSonera has recently come under fire following bribery and money laundering allegations in Uzbekistan. A Swedish TV broadcast, aired in mid-September, had looked into a 2007 deal it secured with Gibraltar-based Takilant for an Uzbek 3G licence. The report prompted anti-corruption investigators to launch a probe into the matter.
TeliaSonera has said it is now reviewing its business practices in such markets. It has also hired law firm Mannheimer Swartling to assess the allegations made with regards to the Uzbek licence.
Regarding investment opportunities in Myanmar, the CEO indicated that this might still be some time away: “Two years ago it would have been impossible; today maybe it is still impossible.”
Although being reluctant to directly compare the two countries, Nyberg noted that Teliasonera’s entry into the Nepalese market four years ago had been a success. He said the unstable political situation had made it a risk to enter the market, but that the business in Nepal had proved “extremely successful” and had far exceeded TeliaSonera’s business plan. It has achieved a 30% return on capital after four years, which Nyberg described as “unbelievable”.
Myanmar is in a process of economic and political reforms. In July a senior government official said the country was looking at encouraging foreign investments. This would include joint-ventures with telcos where the government would retain a 51% stake in the businesses. Currently all of Myanmar’s operators are state-owned and the country’s telecoms infrastructure is relatively undeveloped.
Confirms Yoigo disposal plans
During the conference call Nyberg also confirmed that Spanish operator Yoigo will be sold as part of Teliasonera’s strategy to look east.
“We have the intention of divesting Yoigo,” the CEO said.
“[Yoigo] are performing reasonably well – its good for them and good for the buyer.” “We have made up our mind,” he concluded.
TeliaSonera is thought to be advised by Deutsche Bank on the disposal process.
The big three Spanish telcos owned by France Telecom, Vodafone and Telefonica are considered likely buyers. Yoigo is the fourth largest operator.
