Japan’s KDDI Corp and Sumitomo Corp are likely to partner up with Myanmar’s state-backed telecommunications operator to expand services in one of the world’s least-connected countries, a Sumitomo official said. Sumitomo’s deputy general manager in Myanmar, Soe Kyu, told Reuters the companies were jointly invited int
Japan's KDDI Corp and Sumitomo Corp are likely to partner up with Myanmar's state-backed telecommunications operator to expand services in one of the world's least-connected countries, a Sumitomo official said.
Sumitomo's deputy general manager in Myanmar, Soe Kyu, told Reuters the companies were jointly invited into “exclusive” talks about becoming the international partner of Myanmar Post and Telecommunication (MPT), sharing its existing license. No further details on the likely partnership were revealed.
MPT is currently the country's sole telecoms operator as well as the industry's regulator. The government plans to create a new regulator by 2015 and will divest a part of MPT but will retain a majority stake. That company, with a new name, will be one of four licensed operators.
State-backed Yatanarpon, primarily an Internet service provider until now, also holds a license as do Norway's Telenor and Qatar's Ooredoo, which won the hotly contested bidding for two new licenses in June but have not yet rolled out their networks.
Telecommunications were tightly controlled under decades of military dictatorship in Myanmar, with the government monopolizing the sector and selling SIM cards for thousands of dollars when they were introduced a decade-and-a-half ago.
As a result, Myanmar had the lowest mobile penetration rate in the world, with Swedish telecoms giant Ericsson saying in 2012 that less than 4% of the country's 60 million people were connected.
Since 2011, a quasi-civilian government has implemented sweeping political and economic reforms and has made telecommunications a key part of its plan to jump-start the economy.
The government has released more SIM cards into the market in recent months, although not nearly enough to satisfy demand and they still sell for about US$160. Mobile phone penetration has jumped to 9%, according to government figures.