Friday, June 21, 2013

Winners of Myanmar Telecom Licenses Won't Have Much Spectrum to Work With

With the two winners of new Myanmar telecom licenses set to be announced June 27, 2013, some firms are starting to line up local mobile network employees.

Qatar Telecom has said it would invest $15 billion in rolling out a telecommunications network across Myanmar, should it win one of two licences being tendered in the Southeast Asian country.

The proposed third generation mobile network would reach 90 percent of the population within two years, according to Qatar Telecom Chief Strategy Officer Jeremy Sell.

The licenses are based on 2×5 MHz worth of spectrum at 900 MHz, as well as 2×10 MHz worth of spectrum at 2.1 GHz. Some might say that limited amount of spectrum is not going to support much use of mobile Internet.

You might think a market where only 10 percent of people use a mobile phone is a huge opportunity. But there might be issues.

For whatever reason, China Mobile and Vodafone, bidding as a consortium, voluntarily withdrew from the license competition.

The Myanmar government has distributed low-cost SIM cards (about US$2) through a lottery system. That indicates people will not be able to buy and use a mobile phone as freely as one might otherwise believe.

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