Telecom Firm Ooredoo Raise $300 Million from ADB and IFC to Expand Mobile Market

Qatar telecom firm Ooredoo has secured loans worth $ 300 million from the Asian Development Bank (ADB) and the International Finance Corporation (IFC) to expand the mobile communications network across Myanmar.

 

 

 

 

He said the Asian Development Bank and International Finance Corporation, the private World Bank’s financing arm they extend a loan of 150 million $ for each of the service provider of mobile phone, which is a wholly owned subsidiary of Ooredoo in Qatar, a subsidiary QSC’s Mobile expand “green fields” national telecommunications network with 3G technology advanced.

Ooredoo said Myanmar is propagated through a network of 2019 with the actual infrastructure that plans to develop mobile applications for banking services, agriculture, and health of the mother.

“Myanmar has one of the lowest rates of telecommunications connectivity in Southeast Asia, with poor communities and women less fortunate in getting these vital services are increasingly,” said by Christopher THIEME, Director of ADB private sector operations.

“This assistance, the largest private sector investment in the bank’s history in Myanmar, the government will help achieve its goal of connecting more than 90 percent of the population, including millions of people for the first time.”

ADB also implement the technical assistance project – funded by a grant of up to $ 1000000 from the Canadian climate for the private sector fund in Asia – to study the feasibility of using renewable energy to run power transmission telecommunication towers. Test the use of renewable energy at the specific request of the spread from 1500 through at least towers rural locations, and the reduction of about 10,000 tons of CO2 emissions are expected each year.

In 2013, it was only seven out of 100 people have access to a mobile phone in Myanmar. Allowed civil semi, then the government’s liberalization of trade mentioned above, two foreign companies to enter the market. Since entering 2014, Qtel has reached nearly five million subsribers while covering 80 percent of the population with 3G network.

Said Vikram Kumar, IFC Resident Representative of Myanmar “, in addition to providing thousands of direct and indirect local workers jobs, and a network of telecommunications at the national level, Ooredoo Myanmar help connect people and facilitate economic activity through the application of advanced communications technology.”

Far behind Qtel has in terms of the number of subscribers compared with its competitors, and the Telenor and MPT rumors about a possible departure. However, in an interview with Reuters last month, CEO Rene Meza Qtel Myanmar exclude any such action.

After the new financing agreement, Ooredoo said in a statement: “The agreement also demonstrates the long term commitment of the Ooredoo Myanmar, which has been operating since the license was granted in 2014 and highlights the Qtel’s investment in Myanmar.”

Said Sheikh Saud bin Nasser Al Thani, Chief Executive Officer of the Qtel Group, “Our investment in Myanmar continue to support the trends are good income and growth of clients have been registered in the country. We have a wide range of telecommunications services to support the socio-economic development in the country through improved communication between company institutions and individuals. ”

Read Also : Telecom Tower Firms Edotco Invests in Myanmar

Telecom Tower Firms Edotco Invests in Myanmar

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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