Vodafone and partner China Mobile withdraw ahead of deadline for submissions to run the country's first mobile phone network.
Vodafone has withdrawn from the race to become the first foreign mobile phone network in Burma, citing commercial reasons.
The exit of Vodafone and its partner China Mobile in advance of Monday's deadline for final bid submissions leaves the field clear to 11 others, including the currency speculator George Soros, who has teamed up with Irish telecoms entrepreneur Denis O'Brien.
Campaign groups have warned companies against doing business in newly liberalised Burma before the country relaxes its controls on access to information and freedom of expression.
Under laws enacted by the former military government, anyone in Burma owning a fax machine or modem or setting up a computer network requires a licence. The government can penalise citizens who "spread false news" or publish anything on the internet compromising national security.
Vodafone said it had withdrawn after seeing the final licence conditions, which were published on 20 May, because "the opportunity does not meet the strict internal investment criteria to which both Vodafone and China Mobile adhere".
A spokeswoman for Vodafone added that among the British company's concerns were that a promised telecommunications bill overhauling regulation of the sector is now not due to be enacted before Burma finalises its choice of foreign mobile operator on 27 June.
In 2011, Vodafone suffered a backlash after being ordered to comply with the shut down of Egypt's communications network during the revolution that led to the overthrow of president Hosni Mubarak. Burma took similar measures in 2007, closing down internet connections during a popular uprising.
Human Rights Watch has been lobbying telecoms companies to boycott Burma until legislation is improved. It has warned that far from improving freedom of expression, a draft of the telecommunications bill seen by its officers in March could make matters worse by co-opting foreign companies into censorship and surveillance.
"Right now there are no protections for privacy or safeguards against the kind of internet shutdown that happened in 2007," said Cynthia Wong of Human Rights Watch. "Telecom operators entering Burma simply don't know whether they will be required to help the government censor or illegally monitor users."
Burma, renamed Myanmar by the military government, is tendering contracts to build and operate two nationwide networks. As a nation of 64 million people, fewer than 10% of whom have a mobile phone, Burma represents the world's largest untapped telecoms market.
France Telecom, Qatar Telecom, Singapore's Singtel and Norway's Telenor Group remain in the running, as does a consortium which brings together Soros, Digicel and Burmese property and financial services magnate Serge Pun.
Via his charity, the Open Society Foundation, Soros donates $2m (£1.31m) a year to Burma, mostly for education projects.
Digicel, whose operations are currently confined to the Caribbean and some Pacific Islands, has already made a splash in Burma, sponsoring the national football federation, signing up partners for retail outlets and negotiating land deals for thousands of mast sites. If it wins, Digicel will be ready to roll out a network within months.
"Vodafone and China Mobile will continue to watch Myanmar's progress with interest and will give due consideration to any future opportunities that would meet the companies' investment criteria," the firms stated.
source: The Guardian
http://www.guardian.co.uk/business/2013/may/31/vodafone-burma-withdrawal
The exit of Vodafone and its partner China Mobile in advance of Monday's deadline for final bid submissions leaves the field clear to 11 others, including the currency speculator George Soros, who has teamed up with Irish telecoms entrepreneur Denis O'Brien.
Campaign groups have warned companies against doing business in newly liberalised Burma before the country relaxes its controls on access to information and freedom of expression.
Under laws enacted by the former military government, anyone in Burma owning a fax machine or modem or setting up a computer network requires a licence. The government can penalise citizens who "spread false news" or publish anything on the internet compromising national security.
Vodafone said it had withdrawn after seeing the final licence conditions, which were published on 20 May, because "the opportunity does not meet the strict internal investment criteria to which both Vodafone and China Mobile adhere".
A spokeswoman for Vodafone added that among the British company's concerns were that a promised telecommunications bill overhauling regulation of the sector is now not due to be enacted before Burma finalises its choice of foreign mobile operator on 27 June.
In 2011, Vodafone suffered a backlash after being ordered to comply with the shut down of Egypt's communications network during the revolution that led to the overthrow of president Hosni Mubarak. Burma took similar measures in 2007, closing down internet connections during a popular uprising.
Human Rights Watch has been lobbying telecoms companies to boycott Burma until legislation is improved. It has warned that far from improving freedom of expression, a draft of the telecommunications bill seen by its officers in March could make matters worse by co-opting foreign companies into censorship and surveillance.
"Right now there are no protections for privacy or safeguards against the kind of internet shutdown that happened in 2007," said Cynthia Wong of Human Rights Watch. "Telecom operators entering Burma simply don't know whether they will be required to help the government censor or illegally monitor users."
Burma, renamed Myanmar by the military government, is tendering contracts to build and operate two nationwide networks. As a nation of 64 million people, fewer than 10% of whom have a mobile phone, Burma represents the world's largest untapped telecoms market.
France Telecom, Qatar Telecom, Singapore's Singtel and Norway's Telenor Group remain in the running, as does a consortium which brings together Soros, Digicel and Burmese property and financial services magnate Serge Pun.
Via his charity, the Open Society Foundation, Soros donates $2m (£1.31m) a year to Burma, mostly for education projects.
Digicel, whose operations are currently confined to the Caribbean and some Pacific Islands, has already made a splash in Burma, sponsoring the national football federation, signing up partners for retail outlets and negotiating land deals for thousands of mast sites. If it wins, Digicel will be ready to roll out a network within months.
"Vodafone and China Mobile will continue to watch Myanmar's progress with interest and will give due consideration to any future opportunities that would meet the companies' investment criteria," the firms stated.
source: The Guardian
http://www.guardian.co.uk/business/2013/may/31/vodafone-burma-withdrawal
No comments:
Post a Comment