Telenor and Ooredoo granted network licences

Telenor and Ooredoo granted network licences

By Kayleigh Long   |   Thursday, 27 June 2013

Myanmar's two mobile network operator licences have been awarded to Norwegian multinational Telenor and Qatar-based Ooredoo, formerly Qtel, with a consortium consisting of French telecom Orange and Marubeni corporation named as the back-up. 

A monk talks on his mobile phone during a meeting of Buddhist monks at a monastery outside Yangon on June 27, 2013. AFP PHOTO / Ye Aung THU

The announcement came on June 27, after much market speculation and a months-long campaign of aggressive marketing from bidders including  Bharti Airtel Ltd, Singapore Telecommunications Ltd, Digicel Group Ltd, Axiata Group Bhd (AXIATA), KDDI Corp and Sumitomo Corp, Millicom International Cellular SA (MIICF), and MTN Group Ltd.

The decision was supported by a technical team of international experts who assessed bidders across eight key categories, based on the capacity of the companies to provide network services as well as reviewing their fee offer.

Each successful applicant has made binding commitments regarding the launch and roll-out of its service, making guarantees as set out in the Invitation to Tender.

These requirements include providing 75 per cent geographic coverage for each region and state, as well as offering a wide range of products and services at a price within reach of both urban and rural consumer bases.

Ooredoo captured headlines early in the tender process when it announced that it would spend US $15 billion in Myanmar if it was granted a licence, making it the highest bidder. It also stated its intention to have its networks connect 90 per cent of the population within two years.

The Committee is reported to have taken into account the implications of granting a licence to a company from a nominally Islamic country, as religious tensions continue to pose a major challenge to peace in Myanmar.

In a statement following the announcement, Telenor stated it intends to build a state-of-the-art mobile network using HSPA and LTE-ready technologies for Myanmar, with the goal of achieving nationwide coverage in Myanmar within five years.

Telenor Asia Executive VP Sigve Brekke said the operating licence will allow the company to play a valuable role in Myanmar's socioeconomic development.

"Telenor is uniquely placed to support the development of a thriving and vibrant telecommunications sector in Myanmar. We have established leading mobile operations in five dynamic Asian markets and today's announcement underscores the continued success of Telenor's strategy of delivering accessible and affordable mobile communications services across the region", he said.

The possibility still remains that firms from the tender will become involved in network-level projects through partnerships with MPT and Yadanapon Teleport – something Digicel, one of the most aggressive contenders in the lead-up to the announcement, has previously stated a keen interest in.

The Union Government will now enter the process of finalising and granting the two Nationwide Telecommunications Licences and Associated Spectrum Licences.

The two applicants must first fulfil a set of post-selection requirements, including accepting the licences.

 

Source: http://www.news.myanmaronlinecentre.com/2013/06/28/telenor-and-ooredoo-granted-network-licences/