Who will win the race to Myanmar?

 ·3 Jun 2013
Myanmar Burma

DigiCel Group is being touted as a dark horse to win the race to two mobile licences in South East Asian country, Myanmar.

DigiCel has just over 13 million customers across its 31 markets in the Caribbean, Central America and Asia-Pacific, ranking it 65th in the world by subscriber numbers, according to Reuters.

And while this dwarfs its more fancied rivals, on Friday the two biggest operators in the world, Vodafone and China Mobile pulled out of the running as a joint bidder.

The consortium was one of 12 groups shortlisted to own and operate a nationwide network for an initial term of 15 years.

It still leaves opposition, including the likes of Africa’s biggest operator, MTN, which is close to reaching a landmark 200 million customers; India’s largest operator Bharti Airtel; and Singapore’s SingTel.

According to Spiwe Chireka, program manager of telecoms at the IDC, DigiCel is not to be underestimated given its backing which includes Quantum Strategic Partners, a fund set up for billionaire George Soros, and Myanmar businessman, Serge Pun.

It is believed that up to 90 parties had expressed interest in bidding for a licence in Myanmar due to its attractive opportunity by virtue of its population (60 million) and low mobile penetration rate (approximately 5%).

Applicants have been tasked with providing mobile voice services to 75% of the country geographically within 60 months.

Chireka notes that DigiCel has the advantage of being active in Myanmar for years already, thereby having brand awareness and the ear of government.

She adds that the company has upped its staff content in the country recently, and has begun buying land to set up cellular towers, referring to a Reuters article which also notes that DigiCel has signed up hundreds of partners for retail outlets.

This, the media asserts, is a reason for the relatively untried operator being short-listed for such a big project.

“I think they (DigiCel) has the inside track for Myanmar,” Chireka said. “MTN has a big battle on its hands.”

The South Africa-based operator has not been idle, however, talking up its chances in the country.

Late last month, it initiated an awareness campaign in Myanmar, boasting its achievements and track record to fuel its bid.

More on the Myanmar licence

Major consortium drops out of Myanmar race

MTN talks up Myanmar prospects

MTN’s plunge into $200 SIM card country

Telecom’s hottest property

Vodacom parent Co in Myanmar licence bid

MTN clears first Myanmar hurdle

MTN could spend R71bn on acquisition: CEO

MTN in Myanmar telco licence bunfight

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