Sunday, January 20, 2013

Mobile revolution in Myanmar is on the cards, but too slow for many

Workers use their mobile phone in a vehicle on their way home in Yangon January 18, 2013. REUTERS/Soe Zeya Tun

1 of 6. Employees use their mobile phone in a vehicle on their way home in Yangon 18 January 2013.
Myanmar is on the point of a mobile revolution. Only it happens much too slow for many locals.
Last week the Government invited expressions of interest for two mobile phone licenses-a first step towards a larger mobile penetration of its current 5-10 percent to 80 percent in three years. That would lift it from the bottom of the world ladder of mobile use and put it on a line with neighbors like Bangladesh.
In the meantime, users barns on the pace and the price of adding connections.
A year ago the informal Technology Conference Barcamp Yangon was buzzing with rumors of a SIM card that would cost about $ 6 or 1% of the actual price at the moment.
A year at Barcamp is back, but the conversation is much less dramatic: the operator or State company maybe this week releasing SIM cards between the cost around $ 100. That would still be half of what the last tranche of sold, but still leave many unhappy.
"The clock is ticking," says Ravi Chhabra, a local technology entrepreneur. "People are frustrated. There is much speculation and that creates fear. "
No one denies the need for more connections, and foreign operators have salivated on what amounts to one of the last great untapped markets.
President Thein Sein has made it clear that mobile telephony is a cornerstone of his policy and also has vowed that mobile communications would be cheap-a promise that he repeats a Conference of donors on Saturday.
However, getting it to happen does not expire easy.
The announcement of the expressions of interest in to invite two licenses was a welcome sign that things were moving, but IT experts and sources close to the Ministry of communications said that the timing was surprising, given the fact that the revised telecommunications law in which the nature of each investment had yet to be adopted by Parliament.
The Government says in an attachment to the message that a new draft of the law-that was quietly withdrawn last year after criticism about its content-to Parliament and was expected to be passed by June.
"After the law is complete then there should be a clear policy before an arbitrary expression of interest is requested," said Zaw Min Oo, Secretary-General of the Myanmar Computer Federation.
On top of that, resigned the next day telecommunications Minister Thein Tun, who had overall responsibility for the mobile licences. No reason has been given, and officials declined to comment.
' BIT OF AN EARTHQUAKE '
Sources close to the Ministry say his departure had been rumored for several months, but the timing was unexpected and raises questions about what could happen.
"It's been a bit of an earthquake; Now we need to sit back and look, see which buildings fall down, "said a source close to the Ministry who, like others interviewed, refused to be named out of fear of business relationships with the Ministry and the companies in jeopardy.
Not everyone is involved. Romain Caillaud, Yangon-based consultant at Vkd and Partners, says the announcement and the dismissal "should accelerate the liberalisation and the growth of the telecom sector."
Big foreign telecommunications companies are likely to submit expressions of interest for the period of January 25, say experts.
Alessio Polastri, a lawyer who represents several of such companies in Myanmar, says what delay in the process, there is the Government will benefit.
"It's almost an asset in that first concern about political stability have disappeared, so, probably not only more telecommunications companies participate in the reverse auction will but also the winners more confidence will in committing to higher investment," he said.
More thorny for the Government, but can be assuaging local interests. By inviting expressions of interest for two licenses, the Government seemed to be committed to offering four-two licenses for foreign companies, and two for local applications: state-owned Myanmar posts and telecommunications, or MPT and Yatanarpon Teleport, an internet provider that 51 percent is owned by MPT.
Some local entrepreneurs are questioning the wisdom of this, saying that MPT must possess more than one license is not effective.
CHEAP SIM CARDS
Local IT entrepreneurs who formed in november last year the Myanmar technologies and investment company for a license to offer, and are currently dozens of lobbying Parliament to merge the two local licenses, giving them a better chance of winning or with a partner.
"The ministries have so far come back with positive responses and encouraged us," said Thaung Su Nyein, who also is managing director of local media and IT-company information Matrix. "Even if we don't get this license we've been led to understand that we will have other business licenses."
But more urgent is growing public frustration over the lack of progress on the ground.
Last year of cheaper SIM cards was fueled partly by the MPT decision to continue expanding its own network, promising 30 million mobile phone connections added by 2016-funded by contractors build the towers to sell a certain number of SIM cards.
Since then, the rumor mill has been alive with chatter about when new tranches of SIM cards would be available, and how much they would cost. A few weeks before the tech meet, a previously obscure businessman held a press conference at which he promised that SIM cards cost only 5,000 kyat (about $ 6).
While the promise went unfulfilled and the businessman from image disappeared, it started a movement of sorts: stickers appeared demanding 5,000 kyat SIM cards and several people were arrested in demonstrations, according to the exile media.
This hope have interrupted, but the shortage of SIM cards makes for interest in a steady stream of sometimes contradictory reports about another immediate sale. A report of the local media quoted officials as saying more than 1.5 million SIM cards would be sold on Monday for 100,000 kyat, or about 112 dollars.
That would still be beyond the reach of most people in Myanmar.
"People want to see faster progress," said a source close to the Ministry. "At least half of the country wants a phone, and they want it fast."

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