Boosting International Connectivity Unlocks New Opportunities

BMI View: In BMI's recently-published Myanmar Special Report, we observe that insufficient network infrastructure will be a key obstacle to the nation's plan for 75% mobile penetration rate by 2016. The government is keen to overcome this infrastructure deficit and has announced several projects to boost its international telecommunications capacity. BMI conjectures how raising international connectivity can positively affect mobile operators' internet revenue growth. Handset manufacturers should also benefit as a result.

The Internet Opportunity For Operators

Myanmar currently has an internet penetration of only 1.15%. This is largely a result of bandwidth limitations caused by underinvestment in cable networks. Currently, there is only one international submarine cable - the SEA-ME-WE 3 cable - landing in Myanmar together with cross-border terrestrial fibre cables linking Myanmar to China, India, Laos and Thailand. To alleviate this problem, the government is actively seeking to develop its international telecoms connectivity with multiple projects including the recent awarding of contract to Indonesia's PT Telkom to manage key international cable facilities.

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This article is tagged to:
Sector: Telecommunications
Geography: Myanmar, Myanmar, Myanmar, Myanmar, Myanmar, Myanmar, Myanmar, Myanmar

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