In Focus Will Axiata emerge winner in Myanmar telco bid today?

by **Cals** Thu 27 Jun 2013, 16:10

[b style="color: rgb(255, 0, 0); font-weight: bold;"]In Focus[/b] Will Axiata emerge winner in Myanmar telco bid today?

Business & Markets 2013

Written by Ho Wah Foon of theedgemalaysia.com

Thursday, 27 June 2013 14:27

KUALA LUMPUR (June 27): Axiata and 11 other international contenders for two mobile operating licences in Myanmar are awaiting anxiously for news on who will emerge the winners today.

According to Reuters and Thailand’s online news portals, the Myanmar government will announce the winners for the 2×5 MHz on 900 MHz and 2×10 MHz on 2100 MHz licenses anytime today.

The bid will open the way for winners to begin investing in Myanmar’s fledgling communications sector.

Myanmar, which has opened up its economy to foreign investors, is one of the world’s last untapped mobile markets.

Less than 10% of Myanmar’s 60 million people reportedly use mobile phones and the chosen companies will have to invest heavily in infrastructure.

According to a Deloitte report, there is a need for 15,000 telecom towers and thousands of kilometres of fiber optic infrastructure in the country.

According to the Nation, Digicel is seen as a top contender. The Jamaica-based telecoms company has operations in 31 countries, mainly in the Caribbean and Central America.

Digicel is partnering with George Soros’ Quantum Strategic Partners and YSH Finance, a joint venture between Singapore’s Yoma Strategic Holdings and Myanmar’s First Myanmar Investment (FMI).

The consortium has announced it will invest about US $9 billion if it wins the tender, reported the Nation.

Another strong contender is seen in India’s Bharti Airtel, the world’s 4th largest telecom company, with a presence in 21 countries across Asia and Africa.

Axiata, Asia’s third largest mobile service company, also has its strength. The Malaysian telco company has operations in Indonesia, Sri Lanka, Bangladesh and Cambodia.

But it has not yet disclosed how much it will invest in Myanamar, should it win the bid.