KDDI Archives — LIRNEasia


I can recall the astronomical ARPUs in Afghanistan (over USD 80/month) when that market was opened up. Then, after normal Afghans who were not earning expat salaries started using the service, the ARPUs came down to more normal levels. There are plenty of expats roaming the streets of Yangon, but they have no discernible impact in the fast-expanding networks of this country of 50 million plus. But the ARPUs are high. We can confirm this from the sample survey we conducted in Feb-Mar 2015.
When Japan’s NTT bought 35 percent of the equity of the formerly government owned incumbent operator in Sri Lanka, it radically increased the pace of investment by the company. But this was using funds generated from within the company, primarily from the money earned from its exclusivity over international telecom services. Appears Myanmar’s incumbent has worked out a better deal. Myanmar’s state-owned operator plans to expand its network by increasing the number of base stations from 2,000 to 5,000 by Q2 next year. Its Japanese partners KDDI and Sumitomo will contribute JPY200 billion ($1.
Usually, profits go to those who take the risks and do the work. What is MPT’s contribution to the JV? Being “the industry regulator,” which I hope is a misstatement of facts? Contributing the land and existing assets? Middle management?
In Sri Lanka, the incumbent teleco is a healthy company that gives decent service, lots of patronage benefits and some contributions to Treasury. It did not shed any employees, other than through voluntary schemes. In Bangladesh and India, the incumbents are at death’s door. The difference is that Sri Lanka government partially privatized the company in 1997, giving management control to the Japanese investor. Thanks to another Japanese partner, it looks like the Myanmar MPT company will not join the incumbents requiring life support.
Myanmar Post and Telecommunication (MPT), the state-owned fixed, mobile and international gateway monopoly-cum-regulator, is signing an agreement with Japanese operator KDDI. The latter will take control of MPT’s day-to-day operations. Ministry of Communications and Information Technology (MCIT) official U Than Tun Aung told Myanmar Times: The process has been delayed for many months because so many steps are required to negotiate with MPT, since it is a state-owned business. The agreement is going to be signed at the end of the month. MPT has been shopping for a foreign partner to safeguard its businesses from two heavyweight new entrants, Telenor and Ooredoo, which are due to launch mobile networks end of this year.
It is not only the largest mobile operator in Japan by subscribers with a 45% market share. NTT DoCoMo also carries nearly all the mobile traffic of the crooks and criminals, said the country’s National Police Agency. NTT DoCoMo’s two rivals, KDDI and Softbank, sell number of corporate connections according to the headcounts of a business entity. Softbank Mobile checks the purpose of subscription before closing deals with corporate clients. Its dealers are also obligated to verify the customer’s identity.