3 Mobile network operators Operators are companies that provide mobile and Internet services directly to the user for a fee. The telecommunications industry is generally highly regulated by governments and telecommunications operators must have on-going relationships with governments in countries where they operate, as they require licenses to operate and to obtain frequency (spectrum) allocations. The contract to provide telecommunications services is between the Government and the operator; therefore the legal obligation to provide interception capabilities (when such a law is in place) lies with the operator. Inherent in all mobile networks is the ability to find users placing or receiving a call or message in order to connect the two. Without this inherent feature, there would be no connectivity. This means that at any given time, the location of someone carrying a mobile phone must be determined. Mobile network operators routinely collect this location information mainly to use for billing purposes and to determine if a call was made locally, or while roaming nationally or abroad. Internet service providers Internet service providers (ISPs) provide customers with access to the global Internet, usually for a monthly or hourly fee. Internet service providers can offer fixed line or wireless connections. Mobile network operators also typically function as Internet service providers, as customers pay for wireless data access. Web based service providers Web based service providers, (sometimes referred to as ‘Over the Top’ service providers) provide online services or platforms for users. This includes social networking, search engines, ecommerce, messaging applications, or cloud computing services. Software developers Software developers create applications that run on ICT hardware, including mobile phones, wearable technology (e.g., smartwatches), laptops, desktop computers, and servers. B. The Current State of the ICT Sector in Myanmar The Current State of Telecommunications Until 2012, Myanmar was at the bottom of the global league table for mobile penetration. In 2012, only North Korea (6.97%) and Eritrea (4.98%) had lower mobile penetration rates than Myanmar (7.06%) 107. However, mobile penetration rate has increased rapidly since 107 International Telecommunications Union, “Statistics: Time Series by Country, Mobile Cellular Subscriptions” (last accessed August 2015). 88 PAGE CHAPTER 3: SECTOR-LEVEL IMPACTS

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