News that Vodafone and China Mobile
have pulled their joint bid to secure one of the two mobile phone
licences being offered by the government in Burma (or Myanmar as many
know it) is potentially significant.
For a start, it removes a key rival
in the race for the licences for Denis O’Brien’s Digicel, which has
teamed up with George Soros for its bid.Twelve groups were shortlisted
recently with bids due to be lodged on June 3rd.
In
a statement yesterday, Vodafone and China Mobile said: “Following the
publication of the final licence conditions on May 20th, the
Vodafone-China Mobile consortium has reached the decision not to proceed
with the process as the opportunity does not meet the strict internal
investment criteria to which both Vodafone and China Mobile adhere.”
They
added they would continue to “watch Myanmar’s progress with interest”
and “give due consideration to any future opportunities that would meet
the companies’ investment criteria”.
Burma is transitioning away from a
repressive military regime, with the new government seeking to open it
up to outside investment. It has one of the lowest mobile phone
penetration rates in the world.
In response to
Vodafone and China Mobile’s move, Phil Robertson, deputy director of
Human Rights Watch’s Asia division, said the rush to build mobile
networks in Burma meant the “cart has come before the horse”.
“The
story of the new Burma is the triumph of hope over reality at the
moment. It’s a gold rush mentality. The biggest problem is that many of
the repressive laws are still on the books,” Robertson told UK media.
Robertson
acknowledged that greater access to telecoms services would have an
important role to play in freedom of expression in Burma. Digicel
declined to comment yesterday on the process in Burma or whether it had
any reservations about doing business in the country. Its executives,
including O’Brien, have spoken enthusiastically about the potential of
the market for Digicel.
source: Irish Times
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