Myanmar has begun the process of reforming liberalising its communications networks, which would culminate in the country’s population finally gaining access to mobile and internet.
The country’s Post and Telecommunication Minister Thein Tun told parliament that the government had “started working on a reform plan to provide telecommunication services to the people at an international standard and at a cheap price."
Myanmar is one of world’s poorest countries and telecommunications have thus far been stymied by this. Expensive mobile phones are a luxury that few can afford, and the internet is similarly enjoyed only by an affluent minority.
Officials in the Southeast Asian country have called for an auction process, with the country’s massive potential for growth likely to attract heavyweight foreign investors. The sweeping reforms across the nation present an opportunity for international firms to begin providing mobile phones to the country’s population of almost 60 million. Analyst Nomura Research has described the country as "one of the last untapped telco markets in the region”.
According to Thein Tun, the state operator Myanmar Posts and Telecommunications and the internet provider Yatanarpon Teleport plan on entering into joint ventures with "local and overseas companies that have experience in international telecommunication services" once the auction process is complete. "After negotiations between consultancy groups and officials, we will continue our... telecommunication service [reform] by calling an international tender", he added.
According to a statement by President Thein Sein, the private sector will be encouraged to take a larger role in various sectors – including telecommunications - with the introduction of a “privatisation commission”.
Myanmar has recently had long-standing international sanctions against it relaxed, and is now seen as a major investment opportunity by foreign companies. The country’s parliament is attempting to overcome the economic impact of almost fifty years of military rule, encouraging economic growth with a proposed foreign investment law. The government is targeting a 50% increase in mobile penetration by 2015.
