The Southwood Group looks at recent developments in Myanmar as Telenor and Oordoo win bids to be the first international mobile operators.
Myanmar is set for rapid economic growth as international companies from around the globe look to get market share, after a fiercely contested auction for telecoms licences the Myanmar government has awarded Norway’s Telenor and Qatar’s Ooredoo to be the first international mobile service providers to launch telecoms operating systems.
The government is eager to expand upon the poorly operated state-run mobile telephone service that currently operates to a small population of 5-7 percent, with only one in ten people owning a mobile phone nationals make do with make shift street telephone booths to communicate.
The Southwood Group’s Richard Edwards Director of Private Equity today commented “Myanmar is opening its doors with exceptional growth indications for the future potential of this emerging country, with the countries telecoms expectations to exceed 75 percent coverage to bring into line with neighboring countries Laos, Cambodia and Thailand by 2016 and with a population of roughly 60 million people this is becoming a land of opportunity for investors.”
The Southwood Group’s analysts estimate costs ranging in the region of $1.5 billion dollars taking into account limited skills and poor infrastructure in creating a the new telecommunications network. J F Baksaas, chief executive of Telenor made a comment indicating the two companies would be working closely together to achieve the new state of the art mobile network in the timeframe given; the first mobile services will be fully functional in 2014.
“We will be monitoring the current situation closely as we await the passing of the telecoms bill in parliament, both the selected companies have vast experience in creating new networks and Telenors experience is invaluable gained within frontier countries such as Pakistan, our efforts are focused on Myanmar’s telecoms having seen the signs on the horizon we are locating secure holdings within the sector to occupy and take good returns for our investors,” said Richard Edwards at The Southwood Group.
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