Foreign telcos have until Friday to submit expressions of interest (EOI) in Myanmar’s fourth mobile licence.
The tender committee at the Ministry of Communications and Information Technology (MCIT) formally invited applications last week. The successful applicant will be asked to form a joint venture with a consortium of 11 local investors and companies – including ISP Yatanarpon Teleport (YTP) – known as the Domestic SPV (special purpose vehicle).
"These public companies from Myanmar together with the Myanmar government shareholder are expected to own a minimum of 51% of the joint venture corporation, with the remaining being owned by a foreign telecom operator," the MCIT said in its EOI document. "The foreign telecom operator shall bring in the necessary financing to ensure [the] successful rollout and commercial operations of the fourth telecom operator."
Interested operators have until 5pm local time on Friday to submit their EOI, after which the MCIT will select a preferred applicant and apply to the Posts and Telecommunications Department (PTD) for a licence, which will be valid for 15 years.
"It is expected that the spectrum will be granted similar to the spectrum previously allocated to other operators in Myanmar," the MCIT said. "The spectrum price will be determined by PTD at a fair price, in accordance with the existing telecommunications regulations."
Myanmar opened up its telecom sector in 2014 and is currently served by three mobile operators: Telenor, Ooredeoo, and Myanma Posts and Telecommunications (MPT), which includes Japan’s KDDI among its partners.
According to the MCIT, telecom penetration has grown to 60% by the end of September 2015 from 10% in 2013.
Citing figures from the GSMA, the MCIT said 60%-70% of mobile customers use smartphones, "a uniquely high uptake at this early stage of development compared to anywhere else in the world."
