Critics allege bias as govt shortlists 12 telecom operators

Of 12 selected firms, nine are internationally known high-tech companies while the rest are joint ventures. 

Critics are saying that the chosen firms are very close to the government and they also monopolise in other business sectors. 

Joint ventures chosen include the one created between South Africa’s MTN Group and Myanmar’s Amara Communication; Singapore’s Singtel and Myanmar’s Kanbawza and Myanmar Telephone; and Japan’s KDDI and Sumitomo’s venture with Myanmar Information and Communication Technology Development Corporation (MICTDC) and A1 Construction.

The Myanmar firms in the ventures are close to the former military junta. For instance, Amara Communication is owned by the son of former industry minister and is the subsidiary of IGE, which has been permitted to invest in most of the country’s development projects, including banking, oil and gas as well as petrol stations.

MICTDC is a cooperation of crony companies such as Shwe Than Lwin, Yadanapon Teleport and KMD. 

The other nine firms shortlisted said they were at the second level of contesting for a local telecommunications service licence. Britain’s Vodafone and China Mobile have agreed to apply as one operator, while Digicel from US, South Africa’s MTN Consortium, Norway’s Telenor Group and Malaysia’ Axiata Group are applying separately.

Meanwhile, local telecom operators have decided to link up with foreign operators. For instance, Myanmar’s Redlink Communications has formed a partnership with South Korea’s SK Telecom, and local firms Kanbawza and Myanmar Telephone Co Ltd have formed a joint venture with Singapore’s Singtel. 

“We are linking up with SK Telecom because they are working on Mobile WiMax technology with us. If we get an operating licence, we will be able to provide international-standard services,” Myo Myint Nyunt, general manager of Redlink Communication, said.