FREEDOM
ON THE NET
2016
MYANMAR
Star High Public Company is operated by the military-run conglomerate Myanmar Economic Corporation, which since 2008 is subject to financial sanctions by United States Treasury for its role in
supporting repression by the military junta.26 Officials said the company was chosen because it could
offer capital, access to 1,000 towers and more than 13,000 kilometers of fiber, among other telecoms
assets. However, the license fee for the fourth operator, at US$300 million, was significantly lower
than payments made by the other two foreign firms, creating the appearance of an uneven playing
field. Telenor paid US$500 million and local news reports said Qatar’s Ooredoo spent more than
US$1 billion for their respective licenses.27
Regulatory Bodies
The Posts and Telecommunications Department regulates Myanmar’s telecommunications industry
under the MCIT. Under the junta, the MCIT and intelligence agencies implemented arbitrary and ad
hoc censorship decisions. Upon taking power in 2016, the new NLD administration merged the MCIT
with the Ministry of Rail Transport and Ministry of Transport to create a new Ministry of Transport
and Communications.28
Other state institutions tasked with information and communications technology (ICT) development
and management have been largely inactive.29 The Myanmar Computer Federation, formed under
the 1996 Computer Science Development Law and comprised of industry professionals, is the designated focal point for coordination with the ITU. Critics say it failed to take advantage of the 2011
political change to play a more active role in the ICT sector.
Clause 86 of the Telecommunications Law established an independent commission to take over regulatory functions within two years. The business community also welcomed the law’s creation of an
appeal tribunal mechanism to adjudicate over administrative issues in the telecommunications industry. The MCIT subsequently released two regulatory laws, License Provision in October 2014 and
Networking and Linking in January 2015.
Three more regulatory laws followed: Rules on Competition in June 2015, Rules on Numbering in
December, and Frequency Spectrum in March 2016. The MCIT released a draft by-law on Gateway
Regulation to regulate international gateway services in January, developed in consultation with the
World Bank. The enactment of the by-laws and regulations is a good indication of the government’s
willingness to further liberalize the country’s telecoms sector.
U.S. Department of the Treasury, “Treasury Designates Burmese State-Owned Enterprises,” press release, July 29, 2008,
https://www.treasury.gov/press-center/press-releases/Pages/hp1105.aspx; Shibani Mahtani and Richard C. Paddock “‘Cronies’
of Former Myanmar Regime Thrive Despite U.S. Blacklist,” Wall Street Journal, August 12, 2015, http://www.wsj.com/articles/
cronies-of-former-myanmar-regime-thrive-despite-u-s-blacklist-1439433052 .
26
Clare Hammond and Catherine Trautwein, “Viettel picked for fourth telecoms tie-up with military partner,” Myanmar Times,
March 25, 2016, http://www.mmtimes.com/index.php/business/technology/19662-viettel-nears-contract-for-fourth-telecomsoperator.html; Catherine Trautwein, “Telcos lobby govt over fourth operator,” Myanmar Times, February 19, 2016, http://www.
mmtimes.com/index.php/business/technology/19088-telcos-lobby-govt-over-fourth-operator.html.
27
Aye Thidar Kyaw and Catherine Trautwein, Chan Mya Htwe, “NLD proposes merging economic ministries into
powerhouses,” March 18, 2016, http://www.mmtimes.com/index.php/business/19540-nld-proposes-merging-economicministries-into-powerhouses.html.
28
These include the Myanmar Computer Science Development Council, the e-National Task Force, the Myanmar Computer
Federation, the Myanmar Computer Professionals’ Association, the Myanmar Computer Industry Association, and the Myanmar
Computer Enthusiasts’ Association.
29
www.freedomonthenet.org