MTN on short list for Myanmar mobile licence

MTN Group said on Thursdayit had been short-listed to compete for a telecommunications licence in Myanmar.

It was one of the 12 operators that have been short-listed to submit bids for two nationwide telecommunications licences.

MTN has been successful in operating in volatile countries, some of which have endured widespread social and political unrest. The company has ventured into far-flung territories such as Iran and Nigeria and over the years some of these markets have provided steady revenue and subscriber growth.

MTN, which on Thursday said it might spend as much as $8bn on acquisitions, said it had partnered in Myanmar with Amara Communications, a subsidiary of IGE. The diversified company has interests that include telecommunications tower construction, SIM card distribution, electricity generation, and oil and gas exploration.

MTN has also partnered with M1 Telecom, which is part of the M1 Group, an international conglomerate with interests in telecommunications, real estate, fashion and travel.

"We are very confident that if awarded a licence, we will rapidly and efficiently deploy a world-class network infrastructure and services, as we have successfully done in 22 emerging markets ," MTN CEO Sifiso Dabengwa said. "MTN is strongly positioned to serve the Myanmar market, as we offer a unique blend of world-leading technology and emerging market understanding ."

Myanmar, also known as Burma, has a population of more than 60-million people and its mobile penetration is less than 5%. The Myanmar government is reportedly targeting a mobile penetration rate of about 80% by 2016 through the new licences.

Mr Dabengwa had previously described Myanmar as a "greenfield opportunity", but warned that it could be a challenging venture. "The terrain is quite different from what we are used to," he has said. "There’s a lot of water and mountains which could impact roll-out from a cost perspective, but the opportunity would be great for us."

MTN is targeting acquisitions in Africa, the Middle East and Southeast Asia. " Growth through M&A (mergers and acquisitions) is still an important part of our strategy," said Mr Dabengwa.

"Anything between $4bn and $8bn is something that we could look at."

Mr Dabengwa said he would also be interested in acquiring a North African operator to help diversify company earnings.

Meanwhile, Mr Dabengwa said MTN expected to repatriate about R1.2bn of its funds tied up in Iran this year. It had been in talks with the Iranian central bank and US authorities on sending back its dividends without violating sanctions.

source: Business Day Live
www.bdlive.co.za/business/technology/2013/04/12/mtn-on-short-list-for-myanmar-mobile-licence