Final Report Chapter 3 Development Status and Problem in ICT Sector of subscribers increased to be doubled in the area of Yangon. However, in this stage, it was impossible to buy SIM card for the citizens whose average monthly income was less than USD100 and increase of subscribers was limited only by affluent population. Coming into 2012, the price of SIM cared further reduced to 200 thousand kyat (corresponding to 20 thousand yen). A part of suppressed demand immediately become actual, resulting the subscribers increase by 5 times in one year. In January 2013, number of subscribers exceeded 6 million. Main purchasers were business man and student in affluent population. It is clear that the reduction of SIM card price has contributed to actualization of suppressed demand in these periods. It is understood that SIM card price has a certain elasticity, however provision of low price SIM card resulted to the increase of subscribers under the condition that sufficient provision of communication infrastructures. Present condition of communication infrastructure in Myanmar is not enough capacity to carry the increased traffic by increase mobile subscribers of 80% density. Table 3.3-6 Relations between SIM Card Price and No. of Subscribers Year Price (kyat) No. of Subs. 2000 200,000 13,397 2009 1,500,000 502,000 2010 1,500,000 594,000 2011(GSM/CDMA) 500,000 1,243,619 2012(GSM/CDMA) 200,000 5,440,000 2013(GSM/CDMA) 200,000 >6,000,000 2013(CDMA) 1,500 In communication sector in Myanmar, government decided open the market to private enterprises (foreign fund) and selected two foreign carriers. It would be required to invest to rural area for the achievement of 80% target because 75% of population is in rural area in Myanmar. However, the disposal income in rural area would be law. In order to solve this issue, lots of very low price SIM card with 1,500 kyat becomes on sale as indicated in Table 3.3-6. It was planned initially that 350 thousand cards to sell from April 2013 and 4.2 million cards are scheduled to be sold out and then total subscribers become 10 million during one year. However, due to some reasons, selling was delayed and stared the distribution in a drawing at te end of April 2013. From now on, various issues are anticipated due to rapid increase of subscribers. It becomes concern that present network capacity cannot meet the traffic requirements. Subscribers will increase by 350 thousand monthly, while network capacity increase project is not planned at this moment. 3-13