KDDI and Sumitomo partner for Myanmar telecom sector entry

Japanese companies KDDI and Sumitomo have signed an agreement with state-backed operator Myanmar Posts & Telecommunications (MPT) to modernise the country’s mobile and fixed infrastructure.

The two companies were reportedly invited into exclusive talks earlier this year with MPT, which needs to brace itself against the imminent entry into the country’s mobile market by Ooredoo and Telenor.

According to GSMA Intelligence, MPT has around 8.8 million mobile connections.

A Reuters report claims the two Japanese companies, in partnership with MPT, will invest about US$2 billion over the next decade in Myanmar’s telecom networks.

MPT will split earnings from Myanmar roughly equally with the two Japanese firms, which are running their local operations through a Singapore joint venture.

Although a leading operator in Japan, KDDI has little exposure internationally. Its international business includes a mobile operation in Mongolia, as well as a MVNO in the US.

Trading house Sumitomo has been running various businesses in Myanmar for sixty years.

State-backed Yatanarpon, until now primarily an Internet service provider, also holds a licence for future launch.