Japanese firms and MPT to invest $2 billion in Myanmar
Japan wireless player KDDI and financial firm Sumitomo Corp is partnering with Myanmar’s state-owned telecoms company to invest approximately $2 billion over the next decade.
Myanmar Posts and Telecommunications (MPT) and the two Japanese companies will invest in telecoms infrastructure, and eventually launch mobile and broadband services in the country.
KDDI and Sumitomo plan to launch a Singapore-based joint venture in August, and MPT will split earnings from its Myanmar operations equally with the firm.
KDDI has previously attempted to gain entry into Myanmar, but was one of 10 shortlisted companies that failed to acquire an international operating licence.
The company’s SVP Yuzo Ishikawa believes its investments in Myanmar will reach profitability “in a short period of time”.
News regarding the partnership was first revealed in January this year, and MPT is presently Myanmar’s sole telecoms operator and the country’s industry regulator.
The government is now planning to create a new regulator in 2015, and divest a share in MPT, which will then remain as one of Myanmar’s four licenced players.
International operators Ooredoo and Telenor were awarded licences last year and are building their networks.
Domestic player Yatanarpon holds the fourth licence.