No plan to cut SIM card prices: Government
There is no plan to reduce the current prices of mobile SIM cards until March next year, according to the Ministry of Communications, Posts and Telegraphs.
The Myanmar government is currently selling mobile phone SIM cards for at least 200,000 kyats (equivalent to US$231) per card, and has no plan to reduce the price until the end of the current fiscal year from April to March next year.
After a 30-million mobile project had been launched, sales of GSM SIM cards for 200,000 kyats and WCDMA SIM card for 250,000 kyats started in March this year.
The ministry has sold about 800,000 GSM SIM cards and 200,000 WCDMA SIM cards, earning a total income of 210 billion kyats, according to statistics of the Myanmar Posts and Telecommunications department (MPT) under the ministry.
The earnings were shared by MPT and the companies that have been doing joint-venture business with it.
They include Yadanabon Teleport, Elite Tech, Asia Mega Link (Asia World’s outlet), Global Telephone Co, Zaw & Zaw Co, Myanmar Padauk Engineering & Construction Co, IGE Co, Aungchantha Trading Co, Tamoehne Chanthatun Waitha Co, Fortune Co, Active Business Consolidation Service Co and Myanma Business Corporation.
Among them, the first three are major partners with the MPT for the project. Yadanabon Teleport has been in partnership with the government’s IT sector development while Elite Tech is an affiliate of the famous Htoo Co in Myanmar.
An MPT official said at a press conference earlier this year that for the initial installation of 4 million mobiles in the first phase of the project, 500 billion kyats would be invested to build necessary infrastructure.
As the initial installation of 4 million mobiles cost 500 billion kyats, the investment for 1 million mobiles is 125 billion kyats on average. So it can be calculated that the MPT and its partner companies earned a profit of 85 billion kyats, derived from the total sales worth 210 billion kyats from March to September this year.
They have also earned an extra 7.7 billion kyats for Internet use in mobile phones.
“We accept the government’s inability to sell SIM cards free of charge now. But the price for one card should not cost more than Thai Bt100 or Bt200 (equivalent to 3000 to 6000 kyats). MPT usually buys equipment by inviting tenders. It is learnt that in the last tender, they bought a SIM card for only 250 kyats,” an IT businessman said.
“Continued sales of mobile phones for 200,000 kyats per piece can actually delay the nation’s economic and social progress. Meanwhile, the MPT and its crony companies are accumulating more wealth,” he said.
If Myanmar cannot develop its communication sector, it will take many years to catch up with its neighbouring countries in the field, said Union Minister Thein Tun at a workshop on Myanmar’s ICT development held in Yangon on September 7.
Myanmar’s phone and Internet usage is far less compared to neighbouring countries. Only six or seven out of 100 citizens in the country own mobile phones.
