Monopoly on IT blocking Myanmar development

The monopoly is held by the state-owned Myanma Post and Telecommunication (MPT) and Yatanarpon Teleport Co.

Despite Myanmar’s potential to attract foreign investments due to its abundant natural resources, its infrastructure sectors such as telecommunications are lacking development and are more expensive than those of its neighbours. 

“Although many foreigners are interested in investing in Myanmar, they are hesitating about doing business due to high costs in infrastructure sectors of the country,” said one local businessman, who declined to give his name. “The price of land in our country has reached that of other developing countries. There is not enough electricity supply. Installation fees and bills for telephone use in Myanmar are higher than in any other neighbouring country. So we cannot compete with other Asean countries in attracting foreign investments.”

The minister for Telecommunications, Post and Telegraphs told parliament in February that his ministry is planning to invite private firms into the infrastructure and services sectors.

Renowned Myanmar blogger Ko Agga commented: “The communication policy of the country should be changed as it is monopolised by a certain group. New mobile phones priced at 200,000 kyat (about Bt7,500) per unit are sold to public through a handful businesspersons who are close to the government. No one has the rights to criticise it, but just bows to the inevitable.” 

U Thiha, CEO of the Myanmar Link Company, said: “We hope for free competitive markets in the country. Such a practice will be beneficial to the public.”

Kien Pham, vice chairman of VMG media JSC from Vietnam, said that Myanmar’s political system of elected government now had an edge over Vietnam’s one-party system. Myanmar is now in a position to open up the flow of information, he said, adding that government should adopt policy to support more competition in the sector.

Celebrated Myanmar blogger Ko Nay Phone Latt echoed this view, saying that privatisation of the communications sector would be a win-win situation for both the government and the public.

“Private companies that are cooperating with the government in the communication sector do not provide after-sales service, and complaints to the MPT are not resolved. So we are losing consumer rights,” said an anonymous cellphone user.

Many in Myanmar are of the view that efforts to realise clean government and good governance will face delay due to corruption and bribery.

After the 1988 uprising, Myanmar switched to a market-oriented economic system.  However, most of business sectors are still under the control of government. 

Though some state-owned businesses were privatised ahead of the 2010 election, the MPT remains on a list of protected state-owned enterprises.