By Rory Jones
Qatar Telecom QSC (QTEL.DO) would invest $15 billion in rolling
out a telecommunications network across Myanmar, should it win one
of two licences being tendered in the Southeast Asian country, a
senior company executive said.
The company would roll out a 3G data network across the country,
reaching 90% of the population within two years if it wins a
license, Chief Strategy Officer Jeremy Sell told Dow Jones
Newswires on Wednesday.
"Myanmar is one of the world's last exciting greenfields," he
said. "Over the lifetime of the license, we are looking to spend
$15 billion on the opportunity."
The Myanmar government said in January it would grant two
licenses, each for 15 years, to open up its telecom market and
increase voice and data penetration in a country where less than
10% of the population have a mobile phone.
About 5.4 million of Myanmar's 60 million population had a
mobile-phone subscription at the end of 2012, according to
government figures. The government wants to increase the percentage
of the population owning a mobile phone to between 75% and 80% by
2015-2016.
If Qatar Telecom, which recently rebranded as Ooredoo from Qtel,
is awarded a license it plans to build more than 10,000 base
stations in Myanmar, focusing coverage on urban and downtown areas,
Mr. Sell said. The Myanmar government is considering bids from 11
possible operators, he added.
In April, the Myanmar government named 12 shortlisted applicants
who could formally bid for the two licenses. A consortium
comprising Vodafone PLC (VOD) and China Mobile Ltd. (CHL) said last
month it had withdrawn from the process.
Mr. Sell said Ooredoo could eventually take a 35% share of the
mobile-phone market in Myanmar and is looking to form partnerships
with distribution, retail and financial services companies in the
country to help sell its products. The country's mobile penetration
rate could eventually reach 140%, he added.
The bid for a license in Myanmar comes as the company also
awaits a decision on its recent bid for Vivendi SA's (VIV.FR) 53%
stake in Morocco's Maroc Telecom (IAM.CL).
"We are confident we can do Maroc Telecom and this," said Mr.
Sell, adding the company would use existing financing to fund both
investments.
Qatar Telecom and Abu Dhabi's Emirates Telecommunications Corp.
(ETISALAT.AD), or Etisalat, each said in April that they had made
binding offers for Vivendi's 53% stake in Maroc Telecom after a
months-long process.
The Moroccan government must approve any new owner as it holds a
30% blocking stake in the operator. Neither company has disclosed
the value of their binding bids. Vivendi has been seeking at least
5.5 billion euros ($7.2 billion) for its stake in the carrier.
Write to Rory Jones at rory.jones@dowjones.com
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