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Burmese paper says foreign firms "jostling" for share of telecom market

Posted on: Tuesday, 8 July 2003, 06:00 CDT

Text of report by Kyaw Naing entitled: "Telecoms market attracts overseas players", published in English by Burmese newspaper The Myanmar Times web site on 23 June

Telecommunications equipment and service providers are jostling over market share in Myanmar's [Burma] burgeoning telecommunications sector. And with an install base of just one telephone per 200 people, there is reason to be optimistic.

A number of international companies are providing equipment and services to Myanmar Post and Telecommunications [MPT] and Bagan CyberTech, the country's only Internet and e-mail service providers. Now there are about 10 overseas companies actively engaged in the business sector.

Alcatel Shanghai Bell, one of major players in the sector, is a joint-venture between French Alcatel, the world largest telecom infrastructure vendor, and Shanghai Bell of the People's Republic of China. The company's Myanmar branch opened in 1999.

Mr Dong Yang, business manager for the Asia Pacific region, Alcatel Shanghai Bell, said: "The biggest project implemented for MPT was the replacement of cross bar exchanges in Yangon [Rangoon], Mandalay, Pyay [Prome] and Taungoo [Toungoo] covering 55,000 lines. Our biggest customer in Myanmar is MPT. We also provide equipment for small towns. For example, a project we carried out in Muse facilitates 3,000 lines. We hold a 30-per-cent market share in Myanmar."

Mr Dong Yan said the company decided to come to Myanmar as there is great market potential in the sector. When doing business, they want profit, but at the same time, they want their customers to benefit from the projects. For their projects, they got assistance from of China and Myanmar governments.

Existing market is very big and a lot of lines need to be added. We intend to extend our business in Myanmar. We wish to be involved in mobile phones business with the permission of Myanmar government, he said.

Other local companies supply switchboards and Private Automatic Branch Exchange (PABX) systems for small towns, markets, shopping centres and companies. The system can service from six to 500 lines.

A spokesman for a major player in the market, Kyaw Zayar Telecommunication Services Company, said that they have installed switch board systems raging from 100 to 500 line for six big markets in Yangon, 35 PABX systems in government sector and 239 in corporate sector since 1999.

"A small exchange with a 500-line capacity costs about 100,000 US dollars and a PABX with three lines in and eight lines out costs about K500,000. We have earned 70-per-cent share in the small switchboard and PABX market and 90 per cent in telephone and facsimile market," said managing director Dr Naing Win of Kyaw Zayar Company, an authorized distributor for Panasonic brand telephones.

FISCA's spokesman U Tin Sein said the company is sole distributor for Philips telecommunication equipment. They offer sales and service for a wide range of brands for PABX exchanges, video guards, intercoms, walkie talkie and radio telephones. They have implemented projects for installation of Philips and KY brand switchboards ranging from 100 to 700 lines in towns such as Myitkyina, Moe Kaung, Shwegu in Kachin State, Bamaw [Bhamo] and Katha in Sagaing Division and Phyapon in Ayeyawady [Irrawaddy] Division.

"We have sold over 1000 PABX systems for markets, companies, housing projects and industrials zones since the company was established in 1997. We have been implementing installation of telephones in remote villages in cooperation with Myanma Post and Telecommunications for about two years," said U Tin Sein.

Telecommunication equipment suppliers said that a lot of new switchboards need to be installed throughout the country to upgrade the existing telecommunication systems.

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