The telecommunications tower company officially launched their investment in Myanmar. The last week, Edotco revealed that the company intends to invest $ 200 million in the coming years to Ooredoo, with half of that potential amount to be spent in the first year, according to Suresh Sidhu, CEO of Edotco telecom company.
The company main customer will be Ooredoo Myanmar, one of the two international players to enter the local telecommunications market, the newly liberalized in 2014. The sector welcomed the strong competition between the outgoing state Myanmar Posts and Telecommunications (MPT) Telenor of Norway and the ‘operator of Qatar, is also waiting for a fourth player to enter the fray.
The telecommunications industry in Myanmar has undergone a major transformation in recent years, with SIM cards and smartphones become more affordable for consumers.
“Before the country embarked on the liberalization of telecommunications in 2013, mobile penetration stood at 7 per cent. Within a short period of two years, the mobile penetration has increased to more than 50pc,” the director of the Myanmar investment Commission Daw Myat Sandar said. “With the increase in mobile penetration it is also expected that the number of towers in Myanmar to get out of an estimated 8000-17000 towers in 2017.”
Mr. Sidhu said Edotco saw “an extremely positive market outlook” for the towers sector in Myanmar, adding that the company hopes that the country could take up to 30,000 towers in less than a decade.
“We intend to invest more than $ 200 million in business growth here and the building and has more than 5,000 towers in the coming years,” he said.
This goal will mean quadrupling the current portfolio of Myanmar company tower. Mr. Sidhu said that the company had 1,250 towers where Ooredoo was the first customer or tenant. However, the media now are home to at least one other operator, he added.
Edotco aims to share infrastructure in its towers, according to Mr. Sidhu.
“I think the way we like to do things, everything must have a [collocation] on them,” he said.
Although it is by no means a hard and fast rule, the industry is directed to a 1.7-2.0 ratio tenant towers continued.
“They expect to have a tenant in all the towers except for the anchor tenant,” he said. “This is a simple rule to be profitable.”
Meanwhile, Mr. Sidhu said Edotco would welcome a future relationship with the fourth expected telecommunications.
“The tower companies are operators generally happier when new players come in, so I think we will be very open to working with them,” he said.
Axiata Edotco subsidiary completed the acquisition of a share of three quarters of Myanmar tower company through its holding company, Digicel Holdings Asia – a joint venture between Digicel Group and YSH Finance under Yoma Strategic Holdings – in December, as reported previously by the Myanmar Times.
Yoma Strategic Holdings has chosen to hold its 25pc stake in Digicel Holdings Asia, but it could change your mind and output as part of a partnership agreement with Edotco for the sum of $ 40,250,000 to understand the future based on a multiple of earnings before interest, taxes, depreciation and amortization, or EBITDA, between the actual performance of 9.80xy back 12 months 12.40xy MTC, said a press release.
“I do not think in the short term we will consider a way out. We are very excited about the growth,” said CEO of Yoma Strategic actions Melvyn Pun in the event last week. “I believe that the five-year horizon we will be able to re-evaluate.”
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