Retailers eager on arrival of cheap SIM cards
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Mobile phone retailers and service centres have said that they are not worried about the impact of new SIM cards as private telecomm companies Ooredoo and Telenor prepare to roll out services.
Mobile phone users have been long awaiting the arrival of new competition to the slow and expensive state-run Myanmar Posts and Telecommunications (MPT) network.
The number of mobile data users has increased steadily since 2011 and is approaching 3 million this year, according to the Myanmar Post and Telecommunication (MPT).
Myanmar has one of the lowest rates of mobile penetration in the region. It is estimated that just over 10 percent of the population use mobile phones and the state-owned MPT remains the sole service provider.
The two telecom companies have been licensed since February this year and are planning to begin providing mobile services as soon as possible. The interest has been raised as two private foreign telecom companies "The Ooredoo and the Telenor “ prepare to launch SIM cards within the next few months.
"Cheap SIM cards of two foreign telecom companies will attract people. Ooredoo's SIM cards cannot be used on Java system handsets as they are 3G-compatible. But the 3G system will be suitable for almost all Android phones. So far, it has yet to impact the mobile handsets market," said an official from the Mobile Image handset shop.
Ooredoo Myanmar has distributed survey forms to mobile outlets to gage how to best market their new SIM cards. To make use of the 3G advanced system mobile handsets must have connectivity ranges between UMTS 900 and 2100.
Telenor's SIM cards can be used on Java system phones as they will introduce the 2G system which many older mobile phone users still rely on.
"The old people buy Java phones mostly because they only use it for phone calls while young users are interested in the Android phones," said a retailer from South Dagon Township.
Samsung and Huawei brand handsets have the highest demand in Myanmar which still has one of the lowest rates of mobile phone users in Southeast Asia.
"The market has yet to see higher demands for handsets at a time when the foreign telecom companies are going to sell cheap SIM cards. People have long-awaited the arrival of cheap SIM cards. Eight in 10 respondents showed the interests in a survey conducted last month," he added.
Ooredoo and Telenor have been busy establishing network infrastructure and marketing their new services which they plan to role out as soon as the government passes a telecommunications by-law.
Ooredoo Myanmar recently refuted rumours that only 20 SIM cards will be distributed to each retail store and confirms that it will provide as many SIM cards as the market demands.
"Everyone may have as many SIM cards as they want," said Thiri Kyer Nyo, information officer for Ooredoo.
Ooredoo’s SIM cards will be 3G-compatible, meaning they will require mobile handsets with 900 to 2100 UMTS frequency range, according to former announcements by the company.
"Ooredoo aims to grant data services at reasonable prices for all. We are now negotiating with handsets vendors. The network of Ooredoo will cover 97 per cent of the country in five years," Thiri Kyer Nyo continued.
