MTN is one of 90 companies that have expressed an interest in mobile licences that will soon be up for grabs in Myanmar, one of the world’s least connected countries. Group CEO Sifisi Dabengwa says MTN should have clarity on whether it’s succeeded in its bid for a licence by midyear.
Myanmar, also known as Burma, has a population of more than 60m people. Yet, according to Dabengwa, mobile penetration is less than 5% and the quality of network coverage that exists is poor, suggesting there’s huge opportunity for growth. Dabengwa describes Myanmar is a “greenfield opportunity”.
“Our skills and competencies are in greenfield roll-outs and this would be an excellent opportunity [for MTN],” he says. “The terrain quite different from what we are used to — there’s a lot of water and mountains which could impact roll-out from a cost perspective — but the opportunity would be great for us.”
MTN already operates in 22 markets across the Middle East and Africa. Its biggest markets are Nigeria, South Africa and Iran. It has nearly 190m subscribers on its books and expects this to reach about 210m in 2013.
Dabengwa says Myanmar’s government is going through a formal process of licensing new mobile operators and is expected soon to provide bid requirements for those interested. “From the response to those, they intend to shortlist 10 or 15, who will then move into [the next] phase, and it will then award two licences.”
Because mobile penetration is so low, Dabengwa says the company that succeeds will be the one that can roll out its network fastest. “Our commitments would be based on that strategy.”
Myanmar, which has been under military rule since a coup d’état in 1962, has embarked on extensive reforms in recent years, which also saw the release of pro-democracy leader Aung San Suu Kyi from house arrest. It is set to hold elections in 2015. — (c) 2013 NewsCentral Media