{"id":36004,"date":"2013-04-17T23:14:16","date_gmt":"2013-04-17T21:14:16","guid":{"rendered":"http:\/\/businesstech.co.za\/news\/?p=36004"},"modified":"2013-04-18T09:08:44","modified_gmt":"2013-04-18T07:08:44","slug":"telecoms-hottest-property","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/mobile\/36004\/telecoms-hottest-property\/","title":{"rendered":"Telecom’s hottest property"},"content":{"rendered":"

The 12 groups shortlisted for two telecoms licences for Myanmar include major industry heavyweights and, according to an analyst, MTN<\/a> will have its hands full in obtaining what he believes to be the hottest opportunity in telecoms.<\/p>\n

Last week (11 April), the Myanmar Telecommunications Ministry announced MTN as one of 12 operators that had prequalified to submit bids for two nation-wide telecommunications licences in the country by June 3.<\/p>\n

It is believed that up to 90 parties had expressed interest in bidding for a licence in Myanmar\u00a0due to its attractive opportunity by virtue of its population (60 million) and low mobile penetration rate (approximately 5%).<\/p>\n

Formidable competition<\/b><\/p>\n

For MTN, winning a licence bid in the south-east Asia country would come at a good time for a company which is facing stiff competition in its native country, South Africa.<\/p>\n

Indeed,\u00a0MTN, which has a market value of $34 billion, has operations in 22 countries across Africa and the Middle East, said last week that it\u00a0could spend up to $8 billion on an acquisition and is looking for targets on the continent, the Middle East and Southeast Asia.<\/p>\n

Investment analyst and partner at First Avenue Investment Management<\/a>, Nadim Mohamed<\/a> believes that it will be tough going forward for the likes of MTN and its competitors, as regulators become more active in stimulating competition and lower prices.<\/p>\n

\u201cWe see this happening both in SA and in rest of Africa.\u00a0MTN is therefore looking at acquisitions to stimulate growth \u2013 Myanmar would be exciting,\u201d Mohamed said.<\/p>\n

He noted that, with a penetration rate of less than 5%, \u201cI would expect it to be possibly the hottest telecom opportunity globally and I\u2019m sure bidding will be very competitive. Bidders such as Bharti Airtel<\/a>, Digicel<\/a> and China Mobile<\/a> \/ Vodafone<\/a> are quite formidable.\u201d<\/p>\n

Telcos in the running:<\/b><\/p>\n

\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Network<\/strong><\/td>\nCountry<\/strong><\/td>\nSubcribers
\n<\/strong><\/td>\n<\/tr>\n
Axiata<\/td>\nMalaysia<\/td>\n208 million<\/td>\n<\/tr>\n
Bharti Airtel<\/td>\nIndia<\/td>\n262 million<\/td>\n<\/tr>\n
Digicel<\/td>\nCarribean<\/td>\n13 million<\/td>\n<\/tr>\n
France Telecom-Orange<\/td>\nFrance<\/td>\n231 million<\/td>\n<\/tr>\n
KDDI<\/td>\nJapan<\/td>\n32 million<\/td>\n<\/tr>\n
Millicom<\/td>\nLuxembourg<\/td>\n42 million<\/td>\n<\/tr>\n
MTN<\/td>\nSouth Africa<\/td>\n189 million<\/td>\n<\/tr>\n
Ooredoo (Qtel)<\/td>\nQatar<\/td>\n90 million<\/td>\n<\/tr>\n
SingTel<\/td>\nSingapore<\/td>\n445 million<\/td>\n<\/tr>\n
Telenor<\/td>\nNorway<\/td>\n133 million<\/td>\n<\/tr>\n
Viettel<\/td>\nVietnam<\/td>\n61 million<\/td>\n<\/tr>\n
Vodafone\/China Mobile consortium<\/td>\nUK\/China<\/td>\n391 million \/ 1.13 billion<\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n

Vodacom<\/a>\u2019s parent company Vodafone announced earlier this month that it had teamed up with China Mobile to bid for a licence in the South East Asian country.<\/p>\n

Political reminder<\/strong><\/p>\n

In his weekly column in the Sunday Times last weekend, Rob Rose<\/a>, the editor of the Sunday Times’s Business Times, highlighted the shady political and social past of Myanmar, also known as Burma.<\/p>\n

Given MTN’s chequered past in Iran, he noted that the group will need to be extra cautious in how it goes about securing that licence.<\/p>\n

News agency Quartz highlighted the importance of foreign investors in Myanmar teaming up with local partners, but added that it was “extremely hard to find Burmese business partners that do not have strong junta connections”.<\/p>\n

“There are very few businesses or business people that our Western investors would consider to be clean,” one private equity manager reportedly said.<\/p>\n

MTN and partner<\/strong><\/p>\n

According to Rose, MTN has selected\u00a0Amara Communications, a subsidiary of International Group of Entrepreneurs (IGE), which is owned by the sons of a former industry minister Aung Thaung.<\/p>\n

Thaung has been described as “one of the country’s most corrupt officials” and his sons through IGE, are believed to have benefited from his political standing.<\/p>\n

Independent Burmese news website Irrawaddy said: “Pyi Aung and Nay Aung are thought to have become multimillionaires using their father’s position in Than Shwe’s junta to advance their business interests.”<\/p>\n

More on Myanmar<\/h3>\n

Vodacom parent Co in Myanmar licence bid<\/strong><\/a><\/p>\n

MTN clears first Myanmar hurdle<\/strong><\/a><\/p>\n

MTN could spend R71bn on acquisition: CEO<\/strong><\/a><\/p>\n

MTN in Myanmar telco licence bunfight<\/strong><\/a><\/p>\n

MTN actively pursuing Myanmar licence<\/strong><\/a><\/p>\n

MTN targeting South East Asia?<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The 12 groups shortlisted for two telecoms licences for Myanmar, include the industry’s heavyweights.<\/p>\n","protected":false},"author":9,"featured_media":36017,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_sma_x_autopost_status":"idle","_sma_x_autopost_error":"","_sma_x_post_id":"","_sma_x_attempts":0,"footnotes":""},"categories":[34],"tags":[5628,1660,1874,5118,2160,5629,26,5630,5631,28,5627,5632,2339,4894,5633,27,737],"class_list":["post-36004","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-mobile","tag-axiata","tag-bharti-airtel","tag-china-mobile","tag-digicel","tag-first-avenue-investment-management","tag-france-telecom-orange","tag-headline","tag-kddi","tag-millicom","tag-mtn","tag-myanmar-telecommunications-ministry","tag-ooredoo","tag-singtel","tag-telenor","tag-viettel","tag-vodacom","tag-vodafone"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/36004","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=36004"}],"version-history":[{"count":15,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/36004\/revisions"}],"predecessor-version":[{"id":36019,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/36004\/revisions\/36019"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/36017"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=36004"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=36004"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=36004"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}