Monopoly on ICT blocks Myanmar development: investors

The sector was currently monopolized by state-owned Myanmar Post and Telecommunication as well as joint venture Yatanarport Teleport.

Despite Myanmar possesses abundant natural resources which can attract to foreign investments, the fundamental infrastructural sectors such as telecommunication segment were still left behind and more expensive than many other countries in the region, they said. 

“Although many foreigners are interested in investment in Myanmar, they are hesitating to do business due to high costs in infrastructural sectors of the country,” said a local businessman. 

“Prices of land plot in our country have reached those of other developing countries. There is no enough electricity supply. Installation fees and bills for using a telephone in Myanmar are higher than any other neighboring countries. So we cannot compete with other ASEAN countries in attracting foreign investments,” he said in condition of anonymity.

Thein Tun, Minister for Telecommunications, Post and Telegraphs said in February during the parliamentary session of Upper House that his ministry was planning to invite private firms in infrastructural structure and services sectors.

Myanmar blogger Ko Agga said communication policy of the country should be changed as it was monopolized by a certain group. New mobile phones price at K 200,000 (US$ 250) per unit were sold to public through a handful businesspersons who were close to the government. “No one has the rights to criticize it, but just bows to the inevitable,” he said. 

U Thiha Chief Executive Office of the Myanmar Link Company said “we hope free competitive markets in the country. Such practice will benefit to the public.”

Kien Pham, Vice Chairman of VMG media JSC from Vietnam said that Myanmar has better position to work on. Now, the political system of Myanmar has edged over Vietnam. 

Myanmar has elected government while Vietnam is still run by one party, he said. 

Myanmar is in a position to open up the flow of information. This sector could be enhanced. Therefore, the policy matter is very much vital. The adopted policy should support for more competition, he said.

Myanmar blogger Ko Nay Phone Latt said rather than control of government on information technology, the privatization of this sector will be a win-win situation for both the government and the public. 

A mobile phone user said private companies which were cooperating with the government in communication sector did not provide after-sales service, and complaints to the MPT were not resolved. “So we are losing consumer rights,” he said.

Myanmar people are of the view that the efforts of the government to materialize ‘clean government and good governance’ will face delay due to corruption and bribery cases in the country.

After 1988 uprising in Myanmar, the country was switched into the market-oriented economic system.  However, most of the business sectors are still under the control of government.

Some of the state-owned enterprises were privatized just before 2010 General Election but the Myanmar Post and Telecommunication (MPT) of the Ministry of Telecommunications, Post and Telegraphs was still in the list of exclusion.