Monday 17 February 2014

Gov’t will not control telecom rates - Minister

Deputy Telecoms Minister Thaung Tin has said that the government will not control telecom service rates, which will only depend on the market competition.

The assurance comes just as private telecom providers, Ooredoo and Telenor, prepare to launch new mobile services in March, after being finally issued with operating licences in January.

"The telecoms reform program has started. At the moment, two operators have received licenses. Another Myanmar operator will also come," said Thaung Tin, deputy minister of communications and information technology.

“The market is not controlled by the government. SIM cards are not sold by the government like in the past. The Ministry will only handle policy. As a regulator, it has to prevent monopoly and oligopoly from taking place. The operator is a private one so its price limitation is not limited by the government. It will depend on the market competition," he added.

Both Telenor and Ooredoo have promised to expand Myanmar’s lagging mobile market, currently estimated at 10 percent of the population. Customers also expect higher quality services than the current state-owned Myanmar Post and Telecommunications (MPT).

Currently, MPT sells SIM cards for Ks 1,500 Kyats on a limited basis and the call rate is Ks 50 per minute. According to company announcements, Ooredoo and Telenor plan to reduced rates to between Ks 25 to 45, as well as sell cheaper SIM cards.

"One thing for sure, prices will surely drop down and the quality will get better. The top-up cards won't cost Ks 5,000 and Ks 10,000. You can top-up at the stores for Ks 2,000 or 2,500. You can also top-up from home," said Thaung Tin.

According to the telecommunication law, the Directorate of Telecommunications is serving as regulator and will remain under the Ministry of Communications and Information Technology for two years.

It will be reorganised as an independent organisation within the two years.

source: Eleven Myanmar

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