6/9/22, 10:05 AM
Myanmar Universal Service Fund supports mobile signal coverage growth | Myanmar 2019 | Oxford Business Group
levies. Estimates also indicate that the fund required for the main expenditure programme will be
collected within the first two years of the USF.
The USF infrastructure programme will bring improved communication technologies to communities of a
range of ethnic backgrounds as well as support the implementation of special projects and initiatives,
such as the provision of tools to enhance the use of communication services for people with disabilities.
In the first year of the USF, the aim is to use infrastructure projects to cover an additional 1% of the
population, specifically those living in Kachin, Chin, Sagaing and Tanintharyi. The approximate subsidy per
underserved inhabitant will be around $24. In the second year, infrastructure projects will target the least
covered townships in Kachin, Kayin, Kayah and Shan, with an approximate subsidy per inhabitant of
$17.04. Looking further ahead, the target increase in population coverage is 0.9% in 2020, with an
approximate subsidy cost of $9.30; 0.4% in 2021, at $16.30; and 0.3% in 2022, at $7.02. The final
townships to be covered by the scheme are to be in Rakhine and East Bago.
According to government officials, USF will use a two-stage competitive tendering approach to select
bidders. Under this requirement, only the qualified bidders will have their financial proposals considered.
Thereafter, the bidder with the lowest proposed subsidy will be awarded the project.
While the USF aims to reach 99% of the population by 2022, ethnic and communal problems have delayed
network deployment. As of the fourth quarter of 2018, more than half of the uncovered population –
around 1.8m people – lived in areas challenged by these disputes.
With over 90 USFs employed worldwide, Myanmar’s digital strategy is to build on the experience of such
funds across the globe. Myanmar’s USF is set to serve as an important financial instrument that will
advance connectivity in line with the government’s target, promote economic inclusion and fund digital
literacy projects with a range of target groups.
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