Vodafone, China Mobile exit Myanmar mobile auction

YANGON, MYANMAR: Vodafone and China Mobile said on Friday they were dropping out of the race to enter Myanmar, one of the world's last unexplored mobile telephone frontiers.
They were one of 12 foreign consortiums short-listed by the former army-ruled country to bid for two licences to build, own and operate a nationwide network for an initial term of 15 years.

The two companies said in a statement that they had decided to pull out because "the opportunity does not meet the strict internal investment criteria to which both Vodafone and China Mobile adhere".

"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," they added.

British-based Vodafone this month reported a 90% plunge in annual net profit after taking a vast impairment charge relating to poor business in debt-laden eurozone nations Italy and Spain.

One bidder has estimated the required spending to develop a Myanmar network at about US$2bn.

Applicants also face a list of requirements, including to provide mobile voice services to 75% of the country geographically within 60 months.

Less than 10% of Myanmar's population has access to a telephone - a figure the government hopes to boost to 80% by 2016.

Other companies on the shortlist include Orange, KDDI, SingTel and a consortium backed by an investment fund linked to billionaire George Soros.

A decision on the winning bidders is expected on 27 June.

Source: AFP, via I-Net Bridge


SOURCE

I-Net Bridge
For more than two decades, I-Net Bridge has been one of South Africa’s preferred electronic providers of innovative solutions, data of the highest calibre, reliable platforms and excellent supporting systems. Our products include workstations, web applications and data feeds packaged with in-depth news and powerful analytical tools empowering clients to make meaningful decisions.

We pride ourselves on our wide variety of in-house skills, encompassing multiple platforms and applications. These skills enable us to not only function as a first class facility, but also design, implement and support all our client needs at a level that confirms I-Net Bridge a leader in its field.
Go to: http://www.inet.co.za
Don't miss BizTrends2021 - 8 keynote speakers forecast trends shaping business in our region! Register now!
Comment

Read more: vodafone, China Mobile

Related

News

Let's do Biz