3 The targets included in the licences set out an ambitious vision for improvement of voice and data service coverage throughout the country:  “Commercial launch no later than 9 months after the effective date of the Licence;  Geographic coverage for voice services of 25% and for data services of 10% within 12 months;  Geographic coverage for voice services of 75% and for data services of 50% within 60 months.” 111 The two international licensees each achieved 1 million subscribers within the first 2-3 weeks of operations. 112 Each operator licence includes the requirement that after three years (assuming network rollout targets are met) each operator must contribute 2% of annual revenue to a Universal Service Fund managed by MCIT. This Fund is intended to subsidise the cost of telecommunications service in areas where infrastructure deployment is not economically viable for network operators. (For more on universal service, see below under “Cost of Telecommunications Access”). To support the rollout targets, MCIT also issued new draft rules for the telecommunications sector relating to Licensing, Access and Interconnection, Spectrum, Numbering and Competition, which was open for public consultation in November 2013. 113 Each class of licence permits companies to engage in the specific activities set out in Table 25 below. As of April 2015, MCIT issued several types of licences to 20 companies to provide these telecommunications services. These licences differ from the licences to operate national telecommunications networks held by Telenor, MPT, and Ooredoo. See also Tables 33 and 34 at the end of this chapter for further information. Table 25: Classes of Telecommunications Licences in Myanmar Class of Telecommunications Licence Example of activities Network Facilities Service (Individual) Construct, maintain, operate, and telecommunications services over:  Terrestrial fixed line transmission facilities  Terrestrial radio transmission facilities  Mobile base stations  Submarine cable facilities provide 111 New Light of Myanmar, “Telecommunications Operator Tender Evaluation and Selection Committee issues press release” (28 June 2013), pg 5 and 16. 112 TowerXchange, “The Myanmar tower rollout: FAQs (updated June 2015)”. 113 See the draft rules here http://www.mcit.gov.mm/content/proposed-rules-telecommunications-sector.html and comments by MCRB http://www.myanmar-responsiblebusiness.org/news/comments-mcit-proposed-rulestelecommunications-sector.html 90 PAGE CHAPTER 3: SECTOR-LEVEL IMPACTS

Select target paragraph3