• Burmese
Saturday, July 19, 2025
No Result
View All Result
NEWSLETTER
The Irrawaddy
27 °c
Yangon
  • Home
  • News
    • Burma
    • Politics
    • World
    • Asia
    • Myanmar’s Crisis & the World
    • Ethnic Issues
    • War Against the Junta
    • Junta Cronies
    • Conflicts In Numbers
    • Junta Watch
    • Fact Check
    • Investigation
    • Myanmar-China Watch
    • Obituaries
  • Politics
  • Business
  • Opinion
    • Commentary
    • Guest Column
    • Analysis
    • Editorial
    • Stories That Shaped Us
    • Letters
  • Junta Watch
  • Ethnic Issues
  • War Against the Junta
  • In Person
    • Interview
    • Profile
  • Books
  • Donation
  • Home
  • News
    • Burma
    • Politics
    • World
    • Asia
    • Myanmar’s Crisis & the World
    • Ethnic Issues
    • War Against the Junta
    • Junta Cronies
    • Conflicts In Numbers
    • Junta Watch
    • Fact Check
    • Investigation
    • Myanmar-China Watch
    • Obituaries
  • Politics
  • Business
  • Opinion
    • Commentary
    • Guest Column
    • Analysis
    • Editorial
    • Stories That Shaped Us
    • Letters
  • Junta Watch
  • Ethnic Issues
  • War Against the Junta
  • In Person
    • Interview
    • Profile
  • Books
  • Donation
No Result
View All Result
The Irrawaddy
No Result
View All Result
Home News Burma

‘Make or Break Moment’ for Burma Reforms in Opaque Telecoms Sector

Jared Ferrie by Jared Ferrie
June 24, 2013
in Uncategorized
Reading Time: 3 mins read
0 0
A A
‘Make or Break Moment’ for Burma Reforms in Opaque Telecoms Sector

Vehicles drive past an advertising board of Singapore Telecommunications Ltd (SingTel) in Rangoon on June 20

3.1k
VIEWS
Share on FacebookShare on Twitter

RANGOON — Companies awarded telecommunications licenses in Burma this week will need to spend billions of dollars rolling out networks across a country that has yet to pass a law to govern the sector and where opaque, state-owned enterprises will remain players.

The process is being watched closely as a test case for reform in Burma, although the risks did not stop 90 international firms and groups from joining the initial phase.

Faced with big investments and uncertain returns however, Vodafone Group Plc and China Mobile Ltd dropped their joint bid for a license, saying it did not meet their “internal investment criteria.” The remaining 11 short-listed contenders include Singapore Telecommunications Ltd, KDDI Corp and Telenor ASA.

RelatedPosts

Myanmar Junta Courts Russian Investment to Build SE Asia Trade Hub

Myanmar Junta Courts Russian Investment to Build SE Asia Trade Hub

June 25, 2025
2.4k
China’s Bet on Myanmar Junta Risks Backfiring

China’s Bet on Myanmar Junta Risks Backfiring

June 17, 2025
2.3k
Social Media and Street Protests: Myanmar’s Pushback Against Chinese Influence

Social Media and Street Protests: Myanmar’s Pushback Against Chinese Influence

April 17, 2025
1.6k

“Nobody has any experience or any idea how the government is going to regulate the sector,” said Edwin Vanderbruggen of Yangon-based law firm VDB Loi, which advises telecom companies hoping to do business here.

After decades of isolation and economic mismanagement under the military, mobile phone penetration in Burma is put at 4 to 9 percent of its 60 million people, lower even than North Korea.

The government of President Thein Sein has pushed through a series of political and economic reforms since 2011, and the award of mobile licenses on June 27 should bring a leap forward in digital technology that could speed up economic development.

Vanderbruggen said potential foreign investors in other sectors are watching the process closely. “We really have a make-or-break moment for Myanmar,” he said.

One bad omen for the whole process though is a telecoms bill stuck in Parliament.

“The absence of the law being passed or a clear timetable for its introduction adds considerably to uncertainty to those participating in the current bid round, particularly as it is unclear if there are particular issues with the draft that are causing the delay,” said Marae Ciantar, a Singapore-based lawyer with law firm Allens.

Human Rights Watch warned the draft bill incorporated proposals drawn up under the junta that violate freedom of expression.

A confidential tender invitation obtained by Reuters says firms might be required to restrict or intercept communications or let the government “utilize telecommunications equipment” during any public emergency, which was not defined.

The government plans to create a new regulator by 2015 and will transform the current one, Myanmar Post and Telecommunications (MPT), into a majority state-owned company.

The two international telecom companies that win licenses will find themselves competing against incumbents that plan joint ventures to raise capital and expand their networks.

The sector is dominated by MPT, whose SIM cards went for as much as $7,000 when they were introduced a decade and a half ago and still cost more than $200 today.

Two other companies have much smaller networks: Yatanarpon, which is majority government-owned and primarily an Internet service provider until now, and Myanmar Economic Corporation (MEC), a labyrinthine, army-owned holding company.

The future role of MEC is far from clear. A latecomer into the telecoms market, it began selling cut-rate SIM cards on April 25. The military conglomerate is tax-exempt and even its board of directors is shrouded in mystery.

Meanwhile, Japan’s KDDI is in partnership with Myanmar Information and Communication Technology Development Corp, a local consortium that includes a company founded by Deputy Minister of Communications and Information Technology Thaung Tin.

“For perceptions of impartiality, fairness and a level playing field, it is highly undesirable for government officials to have personal commercial interests in the sectors which they regulate,” said Ciantar of law firm Allens.

Vanderbruggen of the law firm VDB Loi added that some companies that expressed interest in the international licenses might really be aiming to work with those domestic operators, becoming partners and helping them expand their networks. Newcomers have to start from scratch and Vanderbruggen estimated an operator could spend $2 billion rolling out a network.

Additional reporting by Aung Hla Tun.

Your Thoughts …
Tags: Investment
Jared Ferrie

Jared Ferrie

Reuters

Similar Picks:

General Close to Myanmar Junta Boss Placed Under House Arrest, Interrogated for Corruption
Burma

General Close to Myanmar Junta Boss Placed Under House Arrest, Interrogated for Corruption

by The Irrawaddy
September 14, 2023
28.7k

The arrest of ‘kickback king’ Lt-Gen Moe Myint Tun, once seen as a possible successor to Min Aung Hlaing, comes...

Read moreDetails
Myanmar Junta Arrests Thai Condo Buyers, Realtors as Currency Crashes
Business

Myanmar Junta Arrests Thai Condo Buyers, Realtors as Currency Crashes

by The Irrawaddy
June 4, 2024
27.7k

Monday’s arrests follow reports that Myanmar has become one of Thailand’s most lucrative markets for selling condos since the 2021...

Read moreDetails
Planeload of Cronies Accompany Myanmar Junta Boss on Russia Trip
Business

Planeload of Cronies Accompany Myanmar Junta Boss on Russia Trip

by Hein Htoo Zan
March 7, 2025
11.8k

Regime-linked businessmen are set to cash in on deals flowing from the 10 agreements signed between Russia and the Myanmar...

Read moreDetails
Myanmar’s Youth Flee—and They Aren’t Looking Back
Commentary

Myanmar’s Youth Flee—and They Aren’t Looking Back

by Aung Zaw
February 23, 2024
8.4k

In Thailand and farther afield, they join the wealthy and the educated who have already put down roots and invested...

Read moreDetails
Tracking the Business Empire of Myanmar Regime Stalwart Moe Aung and His Siblings
Investigation

Tracking the Business Empire of Myanmar Regime Stalwart Moe Aung and His Siblings

by Aung Thit
September 4, 2023
7.2k

In the second of a two-part series, The Irrawaddy’s Investigation Desk examines more of the vast business interests of the children of...

Read moreDetails
With Proposed Security Gambit, Beijing Decides ‘Enough Is Enough’ in Myanmar
Analysis

With Proposed Security Gambit, Beijing Decides ‘Enough Is Enough’ in Myanmar

by The Irrawaddy
November 21, 2024
5k

China’s establishment of a joint venture security company with the junta to safeguard BRI projects in Myanmar shows it no...

Read moreDetails
Load More
Next Post
‘Islamic Extremists Want My Downfall

‘Islamic Extremists Want My Downfall, That’s Why They Put Me On The Cover’

Painting Amid the Ancient Ruins of Mrauk-U

Painting Amid the Ancient Ruins of Mrauk-U

No Result
View All Result

Recommended

What the ‘Snake Charmer’ Analogy Gets Wrong About Myanmar

What the ‘Snake Charmer’ Analogy Gets Wrong About Myanmar

4 days ago
1.5k
Chinese Investment Reshapes Myanmar’s N. Shan as MNDAA Consolidates Power

Chinese Investment Reshapes Myanmar’s N. Shan as MNDAA Consolidates Power

1 week ago
3.5k

Most Read

  • Myanmar Junta Airstrikes Protecting Irrawaddy Flotilla Kill 20

    Myanmar Junta Airstrikes Protecting Irrawaddy Flotilla Kill 20

    shares
    Share 0 Tweet 0
  • More Than 20,000 Displaced As Myanmar Junta Burns Homes Around World Heritage Site

    shares
    Share 0 Tweet 0
  • Myanmar Junta’s Recapture of Nawnghkio Shows Strategic Missteps by TNLA

    shares
    Share 0 Tweet 0
  • Indian Top Brass Visit Myanmar After Cross-Border Drone Attack

    shares
    Share 0 Tweet 0
  • Myanmar Junta Using Conscripts as Cannon Fodder, Defectors Say

    shares
    Share 0 Tweet 0

Newsletter

Get The Irrawaddy’s latest news, analyses and opinion pieces on Myanmar in your inbox.

Subscribe here for daily updates.

Contents

  • News
  • Politics
  • War Against the Junta
  • Myanmar’s Crisis & the World
  • Conflicts In Numbers
  • Junta Crony
  • Ethnic Issues
  • Asia
  • World
  • Business
  • Economy
  • Election 2020
  • Elections in History
  • Cartoons
  • Features
  • Opinion
  • Editorial
  • Commentary
  • Guest Column
  • Analysis
  • Letters
  • In Person
  • Interview
  • Profile
  • Dateline
  • Specials
  • Myanmar Diary
  • Women & Gender
  • Places in History
  • On This Day
  • From the Archive
  • Myanmar & COVID-19
  • Intelligence
  • Myanmar-China Watch
  • Lifestyle
  • Travel
  • Food
  • Fashion & Design
  • Videos
  • Photos
  • Photo Essay
  • Donation

About The Irrawaddy

Founded in 1993 by a group of Myanmar journalists living in exile in Thailand, The Irrawaddy is a leading source of reliable news, information, and analysis on Burma/Myanmar and the Southeast Asian region. From its inception, The Irrawaddy has been an independent news media group, unaffiliated with any political party, organization or government. We believe that media must be free and independent and we strive to preserve press freedom.

  • Copyright
  • Code of Ethics
  • Privacy Policy
  • Team
  • About Us
  • Careers
  • Contact
  • Burmese

© 2023 Irrawaddy Publishing Group. All Rights Reserved

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Home
  • News
    • Burma
    • Politics
    • World
    • Asia
    • Myanmar’s Crisis & the World
    • Ethnic Issues
    • War Against the Junta
    • Junta Cronies
    • Conflicts In Numbers
    • Junta Watch
    • Fact Check
    • Investigation
    • Myanmar-China Watch
    • Obituaries
  • Politics
  • Opinion
    • Commentary
    • Guest Column
    • Analysis
    • Editorial
    • Stories That Shaped Us
    • Letters
  • Ethnic Issues
  • War Against the Junta
  • In Person
    • Interview
    • Profile
  • Business
    • Economy
    • Business Roundup
  • Books
  • Donation

© 2023 Irrawaddy Publishing Group. All Rights Reserved

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.