U Myint Oo

Deputy Chief Executive Officer

Yatanarpon Teleport Public Co., Ltd
11 March 2014
CONTENTS
About Myanmar
Infrastructure Construction : Tower & Fiber
Telecom and New Emerging Economy
About Myanmar
MYANMAR AT A GLANCE
Land : More than 670,000sq.km
Population : 60 millions
Urban, rural ratio : 30:70
Capital : Naypyitaw
Land borders : China, India, Bangladesh, Thailand, Laos
Nay Pyi Taw,
the new capital
China
B
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B
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Andaman Sea
The Next Asian Telecommunications Greenfield ?
Myanmar has high potential for rapid growth and development
given its rich natural resources, abundant labor force and strategic
location between the regions two economic giants the People
Republic of China and India.
Myanmar possesses a great deal of opportunities for further
development
Nonetheless, there are benefits to having a relatively clean slate to
build on. First, with no preexisting networks, infrastructure roll out can
be more efficient fiber cables could be laid when new electrical lines
are laid, saving money (MGI, 2013). Myanmar should be able to better
tailor their infrastructure to fit current needs of different areas, be they
rural or urban, while still maintaining flexibility for future upgrades.
Rural areas may only need 2G networks initially, but infrastructure can
be tailored to allow for easier future upgrades to 3G or 4G networks.
The greenfield advantage involves planning - a holistic design that
anticipates service needs and integrates ICTs into the overall plan.
Source : World Bank, MPT
It is only for illustrative adoption rate only and may not be representative of the actual excepted adoption rate
80 %
100 %
Source : World Bank, MPT
Month
1
Investment Planning
Vender Selection
Network Planning
Site Acquisition
Define Teams
Singing Contract
Site preparation
Begin to deployment
System Setup
Test Run
Optimization
Ready to launching
into commercial
Launching Service
in 3 main cities
Launching Service
in middle cities
1M subscriber
Month
2
Month
3
Month
4
Month
5
Month
6
Month
7
YTP Mobile Network Roll-out Planning
Subscription Developing Forecast
2014E 2015E 2016E 2017E
Myanmar
Population
60,384,144 61,024,216 61,677,175 62,343,288
Penetration 10.00% 40.00% 60.00% 80.00%
National
Subscribers
6,038,414 24,409,686 37,006,305 49,874,630
Market Share of
YTP
0.50% 16.00% 21.00% 26.00%
Subscribers of YTP 300,000 4,000,000 8,000,000 13,000,000
New Adds 300,000 3,000,000 4,000,000 5,000,000
Network Capacity 1,000,000 5,000,000 10,000,000 20,000,000
3G
OCS, Prepaid
3G
iVAS Platform
Platform Layer
Call Center
Dealers
Business Hall
Distribution Layer
MMS
WAP Color ring
back Tone
Missing Call
alert
VMS
(Voice mail)
Short
Message
App Layer
Service Delivering Platform
3G
WCDMA
LTE
GSM
Bearer Layer
YTP Value added Services Planning
INDUSTRIAL STRUCTURE
41.2%
21.7%
37.1%
56%
11%
33%
Primary Industries
Secondary Industries
Tertiary Industries
Population
: Agriculture, Mining, Fishery
: Oil/Gas refining
: Telecom, Banking, etc
Source: Yangon Institute of Economics
Production
46.40%
34.51%
6.85%
4.45%
2.59% 2.57%
0.79% 0.76%
0.47% 0.44%
0.09% 0.06%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
45.00%
50.00%
-
4,000.0
8,000.0
12,000.0
16,000.0
20,000.0
24,000.0
Approved Amount
%
Foreign Investment of Permitted Enterprises as of (31/8/2012)
(By Sector)
Source : Directorate of Investment & Company Administration
US $ in Million
TOWER CONSTRUCTION
Tower Requirement - 10,000 in 3 years
Tower constructed - 1655
All operators to share the towers
Building and related construction for radio station
More tower sharing at near future
Source: MCIT
Strong Government interest and determination in ICT
development
Fast increase in demand on mobile service
High return of telecombusiness
New administration with new reformplan
Regional Cooperation with ASEAN, South Korea, Japan, China and
India, ETC
Strong needs for telecominfrastructure
FOCUS ON CURRENT TOWER & FIBER CONSTRUCTION
AREA DEPEND
Rural/agricultural area
Upland/hilly, mountainous area,
Delta Region
Suburban area
Urban or city
RELIABLE INFRASTRUCTURE
Strong Political commitment and Policies
Public and Private Corporation and Collaboration
Domestic and Foreign Investment
Support Program (CSR)
Effective Utilization of resources
REGULATION
Control over installation and operation of structures for roof
top/ground
Dealing with Municipal Corporations/Municipal
Council/MOH (Housing and Urban Development)
Ownership/Lease/Tenancy Right over the plot or building
Safety (health issues concerning radiation hazards)
Sign boards/Warning Signs
etc
Infrastructure Construction:
Tower & Fiber
Tower Facilities Organization (TFO) : National Tower Deployment Targets :
Q4 2014 = 6,000 total Rural & Urban Tower Sites
Q4 2015 = 10,000 total Rural & Urban Tower Sites
Q4 2016 = 13,000 total Rural & Urban Tower Sites
Q4 2020 = 20,000 total Rural & Urban Tower Sites
Wholesale Backbone Organization (WBO): Nationwide Fibre Backbone
Targets :
Q4 2014 = 10,000Kmtotal Fibre Optic Cable
Q4 2016 = 25,000Kmtotal Fibre Optic Cable
Q4 2020 = 50,000Kmtotal Fibre Optic Cable
Build Infrastructures where Competitors Fear to Tread (i.e. Rural Areas)
TOWER CONSTRUCTION
Constraint :
Quality ?
Skill Labor Issue ? / Material Availability ?
Time, Transportation, Terrain, Weather
Rules and Regulation / Adopt Clear Policies Frame Work
Public and Private Corporation and Collaboration
Electricity
Model Site Design
6 Model sites type are identified to standardize the
design process.
Special & extreme cases are excluded, special
solutions will be made on case by case basis.
Greenfield - Outdoor -45m Triangular
Greenfield - Outdoor - 60m Square Section
Tower
Greenfield - Outdoor 30m Mono Pole
Greenfield Outdoor 60m Guyed Mast
Rooftop Outdoor - 6m/9m Pole
Rooftop - Outdoor - Mast
Real Scenario
Site Clearing and Leveling
Earthworks
Tower Grounding
Cell Tower Construction & Erection
Design & Manufacture of Telecom
Towers and Monopoles
Supply and Installation of fully
equipped shelters
delivering electricity, air
conditioning and security
protection
Supply and Commissioning of
Generators
Site Fencing and Protection
TOWER INSTRALLATION
MANDATORY TOWER SHARING
Source : MCIT-2012
Harmonizing technologies is a key consideration for interoperability.
The single shared network would help the government meet its
aggressive rollout plans to be up and running in seven months,
and would avoid duplication of infrastructure.
FIBER CONSTRUCTION
Huge Requirement - 25,000 km in 3 years
Fiber constructed - 15,000 km Approx
OSP
Passive fiber Sharing ?
FIBER CONSTRUCTION
Considering the importance of creating a
nationwide robust infrastructure to support
broadband growth
Ensure No Duplication of Infrastructure
Ensure Efficient use of investments
Faster and Better coverage for customers
FIBER CONSTRUCTION
Constraint :
Civil costs vary between Rural and Urban
Skill Labor Issue ? / Material Availability ?
Time, Transportation, Terrain, Weather
Rules and Regulation / Adopt Clear Policies Frame
Work
Public and Private Corporation and Collaboration
Electricity
FIBER CONSTRUCTION
Constraint :
The rules regarding rights of ways
Space limitations within dense cities to build larger
POPs
Larger scale compressed roll-outs do result into
disturbing the city live through traffic issues
Company A
Company B
We hire a truck to carry goods city to city
Roads are Open Access
operators have access to main highway and local roads and use them as a
platform for competition,
they pay user fees,
If A does not provide service customers move to company B,
B is not told: Build your own Road
ROAD ANALOGY : COMMON BACKBONE & FACILITIES
Source : Hon. David Butcher
WHY DO IT IN TELECOMS ?
Telecom
and
New Emerging Economy
NATIONAL DEVELOPMENT CONCERN
Alternative Employment opportunities for urban and rural areas in order to
stem the flow of the rural population to the urban areas.
Stabilize & Secure the country by improving Socio-Eco developments.
Telecom & ICT enhancements to facilitate
Providing cost effective, uniform access throughout the whole country.
Targeting Zero Kyat connection fees and low services fees.
Beyond 2015 !!!
Various Studies show that National GDP growth rates increases by around 1
to 1.2% with every 10% increase in mobile telephone penetration.
Even specific services have been proven to increase GDP, such as Mobile
Banking (estimated increase in GDP growth rate of 0.6%).
Low / No cost SIM cards will ensure the maximum number of subscribers.
A Low / No cost SIM card could lead to a 50% penetration rate in 2015,
adding Billions of USD to the annual GDP and significant tax revenues.
For every employee of the mobile network company, 8-10 jobs will be
created in support services.
In Myanmar this could add up to 300,000 mobile related jobs.
ICT DEVELOPMENTS FACILITATE NATIONAL GROWTH
THANK YOU