3 for telecommunications towers after long delays due to protracted negotiations over pricing and terms. 114 MCIT has not succeeded in implementing infrastructure sharing (i.e. requiring that towers host the network equipment of more than one operator). This means that each operator and their contractors are continuing to aggressively hunt and compete for tower sites in order to achieve their necessary area coverage to meet rollout targets. Slowing down the site leasing process to adequately engage communities during the scoping and construction phase of locating towers to hear and address their concerns works against this market and contractual imperative. This reflects a broader challenge operators currently face in Myanmar, between aggressive rollout commitments on the one hand and the need to ensure responsible and effective business practices that requires sufficient time and resources to implement. This is an example of a gap in Government approach that creates a disincentive for responsible business conduct. Cost of Telecommunications Access Prior to the licencing of new mobile network operators in Myanmar, SIM card prices had historically been high, often costing thousands of US dollars. In April 2013, the Stateowned Myanma Posts and Telecommunications (MPT) began selling SIM cards to winners of a public lottery at a price of 1,500 MMK (around $1.50). 115 During the lottery’s first month, an initial batch of 320,000 SIM Cards was made available with each administrative ward receiving a limited allocation of 100 SIM cards. 116 Many lottery winners sold their SIM cards to third party brokers and phone shops. Overall SIM prices were reduced, but black market prices remained too high for most users to afford. Telenor and Ooredoo also began selling SIM cards for 1,500 MMK in the latter half of 2014 when their networks were launched. Android smartphones can now be purchased for as little as 50,000 MMK, in some areas, making owning a mobile phone with Internet access financially realistic for many people for the first time in Myanmar’s history. In May 2015, the Union Parliament suspended a newly imposed 5% commercial tax on mobile phone top-ups until the next fiscal year following public dissent. 117 Similarly, in July 2015, state-owned Myanma Posts and Telecommunications (MPT) halved the price of landline phone installation. The rate had previously been 650,000 MMK (roughly $565) – well beyond reach for the majority of households, and was brought down to 325,000 MMK, potentially signalling a Government priority to liberalise the fixed line market. 118 In August 2015, MCIT launched a tender for the design of Myanmar’s universal service strategy. The tender outlined support for MCIT and the regulator Post & Telecommunications Department (PTD), and the universal service strategy’s implementation in a number of pilot areas, in order to “accelerate the development of rural 114 Myanmar Times, “Bad reception Telenor and Ooredoo pick new tower firms” (25 May 2015). 115 Reuters, “In Myanmar, cheap SIM card draw may herald telecoms revolution” (24 April 2013) 116 Telegeography Research Services, “Govt: You Can’t Win the SIM Card Lottery if You Don’t Buy a Ticket” (April 2013) 117 Myanmar Times, “Parliament suspends 5% tax on top-up” (28 May 2015). 118 Irrawaddy, “State-Owned Telecom Slashes Landline Fees as Users Go Mobile” (15 July 2015). 92 PAGE CHAPTER 3: SECTOR-LEVEL IMPACTS