Reforming MPT is essential to ensure its survival in the face of skilled and well-endowed competitors. Is a partner from a high-cost, high-price telecom market the best way to do this? Japan’s KDDI Corp and Sumitomo Corp are likely to partner of Myanmar’s state-backed telecommunications operator to expand services in one of the world’s least-connected countries, a Sumitomo official said. Sumitomo’s deputy general manager in Myanmar, Soe Kyu, told Reuters the companies were jointly invited into “exclusive” talks about becoming the international partner of Myanmar Post and Telecommunication (MPT), sharing its existing licence. No further details on the likely partnership were revealed.
The much anticipated Myanmar Telecommunications Law (Law 13 of 2013) was approved by both houses of the Myanmar Legislature and was given Presidential assent. Our analysis of the law is not yet complete, but here are some first thoughts: There is considerable and unnecessary overlap of powers and functions between the Ministry and Department. Positioning the Ministry as the authority to appeal departmental decisions may make it the de facto regulator. This goes beyond the usual concern about the Ministry also having responsibility for the incumbent operator MPT. The explicit authority given to the Ministry to clarify technical terms in the law appears to position it as a supra regulator even after the promised creation of the independent regulatory authority.
It appears that ability to invest was a critical factor in the selection of Ooredoo and Telenor as the first foreign private licensees in the Myanmar telecom sector. Both have committed to low-price mobile services. Telenor has considerable experience in running profitable operations using the Budget Telecom Network business model. Ooredoo can, I suppose, buy that expertise. If they do not succeed in running a BTN model in Myanmar, it will be their money that will go down the drain.
Internet in Myanmar has suffered outage on July 20, 2013. Since then the country remains choked in terms of connectivity. Officially the breakdown of only submarine cable (SEA-ME-WE3) at 13 kilometers away from the coast was blamed. The Irrawaddy wrote on July 24: “Works are being carried out to repair the fault as quick as possible in coordination with [a] Singapore-based underwater repair and maintenance team. It is expected to take about one month,” the state-owned company said in a brief announcement in government newspaper The New Light of Myanmar.