Ooredoo Myanmar wins $300m financing from ADB and IFC
THE ASIAN Development Bank and International Finance Corporation are providing loans worth US$300 million (Bt10.6 billion) to Ooredoo Myanmar for the roll-out of a mobile-telecommunication network that aims to help extend affordable telecom services acros
Ooredoo is to expand a nationwide “greenfield” mobile telecom network using advanced third-generation technology, the ADB said in a statement released yesterday in Yangon.
“Myanmar has one of the lowest rates of telecom connectivity in Southeast Asia, with poor communities and women the least likely to have access to these increasingly vital services,” said Christopher Thieme, director of the ADB’s Private Sector Operations Department.
“This assistance, ADB’s largest private-sector investment to date in Myanmar, will help the government meet its target of connecting over 90 per cent of the population, including millions of people for the first time.”
Myanmar’s mobile-phone penetration rate was about 60 per cent last year. Research by Deloitte Southeast Asia showed that the penetration rate was below 4 per cent at the beginning of 2012. It increased to 7 per cent in 2013.
Since its entry to the market in 2014, Ooredoo Myanmar has reached millions of customers, covering 80 per cent of the population with its 3G network.
Ooredoo is one of three mobile-phone operators. The government, aiming to increase the penetration rate to 100 per cent by 2021, is in the process to extend a licence to the fourth operator.
Ooredoo’s network roll-out will be carried through to 2019. With the physical infrastructure, Ooredoo Myanmar plans to develop mobile applications for banking, agriculture, and maternal health, which will improve access to services particularly for low-income groups and women.
“This investment shows our continued support to help extend essential and affordable infrastructure services to Myanmar people,” said Vikram Kumar, IFC resident representative for Myanmar.
“In addition to providing thousands of direct and indirect jobs to local workers, Ooredoo Myanmar’s nationwide telecom network will help connect people and ease economic activities by applying advanced telecommunication technologies.”
The ADB will also carry out a technical assistance project – financed by a grant of up to $1 million from the Canadian Climate Fund for the Private Sector in Asia – to examine the feasibility of using renewable energy to run telecom transmission towers.
The project will trial the use of renewable energy at selected towers with the goal of deploying it across at least 1,500 rural sites,|cutting around 10,000 tonnes of carbon-dioxide emissions every year.
