A new agreement signed by Myanmar’s state-supported operator Myanmar Posts & Telecommunications (MPT) will see Japanese firms KDDI and Sumitomo entering the market to modernise the operator’s mobile and fixed infrastructure.
MPT courted the two companies earlier this year in preparation for new competitors Ooredoo and Telenor entering the Myanmar market. MPT currently has around 8.8 million mobile subscribers.
The two Japanese firms, in partnership with MPT, will reportedly invest around $2 billion into Myanmar’s telecom infrastructure across the next ten years. Earnings will be split fairly evenly between the three companies.
KDDI SVP Yuzo Ishikawa stated that the firms would “be able to reach profitability in a short period of time.”
While KDDI is a market leader in Japan, it is not so well-known overseas. It currently operates a mobile unit in Mongolia and an MVNO in the US. Sumitomo meanwhile has had a presence in Myanmar across various industries for sixty years.
Ooredoo and Telenor are not the only competition for MPT. Yatanarpon – another state-backed firm – holds a licence to launch mobile services, having previously provided Internet services.