reform Archives — Page 2 of 2 — LIRNEasia


Our engagement with Myanmar begins

Posted on August 16, 2013  /  3 Comments

It was tough to engage when reforms were not on the cards and Myanmar seemed happy to watch while the whole world got connected. Those days we wrote about China selling mobile service inside Myanmar and about cables that were cut. We also wrote about Cyclone Nargis and our small contributions to relief. But all that changed once the reform winds started blowing. I’ve been asked why so many blog posts on Myanmar.

Why regulatory reforms are incomplete

Posted on August 14, 2013  /  0 Comments

The last few days, I’ve been preoccupied with the basics of regulation and sector reforms. This was because I was preparing for a regulation course we’re teaching in Naypitaw, Myanmar, for government officials who will form the core staff of the to-be-created ICT infrastructure regulatory agency. The teaching I do these days mostly assumes the basics, but that cannot be done in Myanmar, a country that is a green field in terms of regulation and reforms. In advocating for good regulation, one always searches for the stakeholders who will support your cause. Many moons ago, I used to believe that the licensees who were subject to the authority of the regulatory agency or the government would be the natural supporters of regulatory reform.
I recall a Sinhala poem from my time at Peradeniya University. It asked who had actually built Sigiriya and the great irrigation works: The kings who routinely get the credit or the unnamed many who did the actual building? The telecom reforms in Sri Lanka are now seen as an unqualified success. The reforms did not just happen. Courageous decision making was needed.
The liberalization process in Myanmar is chugging along, with an arrest or two, bad advice from the ITU Regional Office and so on. Hope things will get better. In a poor country like Myanmar, it is hard for grassroots people to get a cell phone. The price has dropped to 150,000 kyat but there are just 1.24 million mobile phones in a country with a population of over 60 million.
I am all for the issuance of new licenses in Nepal, a country with a population of 30 million and fewer mobile operators (officially) than its South Asian peers. But the justification is novel. Seems to solution the described problem afflicting Nepal Telecom is some kind of program to reform it, including, but not limited to, privatization. But anyway, good that something is being done. Of course, there is many a slip between cup and lip.
It appears that previously expressed hopes for a good law on telecom emerging from the recesses of Nay Pyi Taw were overly optimistic: Information-technology experts and entrepreneurs have proposed amendments to Myanmar’s telecommunications bill that was made public last month. Khun Oo, president of the Myanmar Computer Federation, said the information and communications technology sector could develop rapidly, but it could also decline because of the new law. Ye Yint Win, president of the Myanmar Computer Professionals Association, said: “According to Section 4 Article 7, every telecommunications services will need a licence. Web-development businesses, e-commerce businesses and individuals who want to sell their applications will also need licences. So [the law] needs to separate and identify the services that need licences and those that do not need licences, as it can harm freedom of creation and small enterprises.
Technocrats (and people like us who emphasize the rational) would prefer a rational, integrated solution. But we rarely get greenfield opportunities. In almost all cases vested interests dominate. So the reform that gets done is imperfect and messy. This is the message P Chidambaram, Minister of Finance seems to be giving to NYT.

Myanmar telecom reform outlines

Posted on September 10, 2012  /  2 Comments

Having a customer-centric sector seems a good idea. The Ministry seeing its primary function as that of taxing operators a tad problematic. What is a public switchboard telephone network? But this is what is trickling out of Myanmar. “The Department of Posts and Telecommunications will be coordinated by the Ministry of Communications, Posts and Telegraphs, which will tax operators,” U Kyaw Soe said.
I am not one for tradition, but we followed tradition to some extent, with the lighting of the lamp (associated with knowledge) and the general format of a book launch. One thing I insisted on was the need to open up for discussion. And discussion we had: This was a faculty member from the University of Colombo who wanted to know whether I was peddling discredited neo-liberal (neo-classical is what he actually said, but I think neo-liberal is what he meant) prescriptions. I responded in concrete terms, showing that the government did not have apply tax-payer funds to stanch the losses of the “national” airline when it was semi-privatized (and actually earned dividends) while after renationalization we are losing more money in a year than the entire welfare budget. So now the debate is joined.
Reports are coming out about the Myanmar government’s plans for the telecom sector. Sadly, little seems to have been learned from the rich experience of the past two decades. Why otherwise would there be an interest in maintaining 51% ownership of the new operators? More interesting is the line about developing a national backbone. Are the rules for open access being drawn up?
In the larger scheme of things, telecom reforms are easy. But they involve technical expertise and are likely to result in terrible errors like Timor Leste’s multi-decade monopoly, Thailand’s concession contracts, Bangladesh’s fixed licenses, and so on, as we pointed out. The Reuters report provides a good overview of the challenges facing reformers in Myanmar. As Myanmar opens up after almost 50 years of army rule, and foreign investors descend on the resource-rich country of 60 million, its long-isolated institutions are struggling to keep up, raising the risk of a policy misstep that could wreck stability in this nascent democracy. The pace of change, already frenetic, looks set to accelerate after President Thein Sein announced on June 19 a second phase of reforms.
One hopes that the new law takes into account all the lessons we have learned in telecom reform in Asia in the past few decades. According to Nomura, a new telecom law, which could allow for more licenses (up to 5) and direct or indirect foreign operator participation, is currently in final stages of drafting.The telecom sector in Myanmar is likely to be on the radar for most telcos for incremental investment. Unstable politics and bottlenecks, including: 1) high handset prices ($45-600); 2) SIM registration cost of $150-200; 3) long waiting periods (up to 2 years) and connection hurdles; 4) poor networks and coverage; and 5) lack of competition have hampered growth. The government is now targeting 50 percent wireless penetration by 2015, implying a 50 percent CAGR.
A short piece I wrote on my own time (IDRC is subject to Canadian government restrictions against any expenditures of Canadian funds in/for Myanmar) was just published in English in the Myanmar Times. I am hopeful the Bamar translation will also be published. The text is below: In 2010, I worked on a section of an ITU report about information and communication technologies in the least developed countries (ITU, 2011). Analyzing the countries that were at the bottom of the league tables in telecom, I found to my unhappiness that Burma was one before the last in mobile telephony. Hearing that N Korea was reaching 1 million active connections by end 2011, I checked the data again.

South Asian Postal Union?

Posted on November 19, 2011  /  1 Comments

Postal services everywhere are in trouble. South Asia is no exception. What one does to remedy the situation is the important question. The Indian government seems to think that training 10 officials from the SAARC will do it. And that the solution involves greater cooperation among money-losing, inefficient administrations.
When one only reforms only a part of an interconnected sector, the unreformed parts start to atrophy. Because of union resistance and the perception that the post was not that much of a money maker to start with, the hitherto conjoined posts and telecom were bifurcated and reform efforts focused on telecom. So 30 years after bifurcation, what has happened to the post, saved from from the depredations of foreign capital and World Bank advice? Sri Lanka’s state-run postal service lost 3.0 billion rupees in 2010 up 22 percent from a year earlier, while revenues fell 6.

Why postal reform is part of ICT policy

Posted on October 31, 2009  /  0 Comments

All over the world, postal services are hemorrhaging red ink. They are being done in by the phone and the Internet. Yet their salvation is also the phone and the Internet. As commerce becomes e commerce, there is a high demand for reliable delivery services. In countries ranging from Korea to Sri Lanka the postal service is NOT reliable.