After reopening its doors to the world community, Myanmar has placed a high priority on economic reforms via FDI, especially into its telecommunications sector. During 6M14, total foreign investments there surged 70 percent YoY to a total of USD2.4 billion, 60 percent of which – some USD1.4 billion – going into their telecom sector, a highlighted key component in Myanmar's strategies to update their antiquated image.
In the old days, telecommunications business in Myanmar was monopolized by its government – overseen by the Myanmar Posts and Telecommunications (MPT) – controlling landline telephones, mobile phones, internet and other communication services. Such monopoly has been blamed for an extremely low teledensity ratio of 14 percent in Myanmar. In 2013, the government granted concessions to Qatari and Norwegian private companies to develop a new domestic mobile phone network. The MPT also has a joint venture agreement with Japanese companies to upgrade its current mobile phone service efficiency, readying the nation for future competition. In view of this, KResearch estimates that within 3-5 five years, around USD18-22 billion in Myanmar's FDI will go into telecom sector.
These rising opportunities for private participation in Myanmar's telecom business will also be there for other related businesses. During the infancy, Thai companies engaging in networking/ telecommunication products and communication/electronics merchandise will see good opportunities. Over the longer term, when Myanmar becomes more developed, opportunities for digital content and value-added service suppliers to tap into that emerging market will also come to fruition. However, many challenges relevant to the telecom sector await foreign businesses in Myanmar that could hamper their performance, including insufficient infrastructure, low-income consumers and poor investment laws.
Enter the code from the poll
Annotation
This research paper is published for general public. It is made up of various sources. Trustworthy, but the company can not authenticate. reliability The information may be changed at any time without prior notice. Data users need to be careful about the use of information. The Company will not be liable to any user or person for any damages arising from such use. The information in this report does not constitute an offer. Or advice on business decisions Anyhow.