6/9/22, 10:05 AM
Myanmar Universal Service Fund supports mobile signal coverage growth | Myanmar 2019 | Oxford Business Group
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Myanmar Universal Service Fund supports
mobile signal coverage growth
Myanmar (/country/myanmar) ICT (/search-results?
sector=52392&country=all&keywords=)
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Analysis
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Since the liberalisation of the telecommunications industry, the Myanmar government has made a
point of tailoring its digital strategy to achieve its goals on economic inclusion. With this in mind,
the Telecommunications Law of 2013 gave the Ministry of Transport and Communications (MoTC)
the ability to establish a Universal Service Fund (USF) with the ultimate goal of ensuring universal
mobile coverage.
In early 2018 the government of Myanmar revealed plans to impose a 2% tax on the income of mobile
operators through the establishment of a USF. As part of the government’s overall Universal Service
Strategy (USS), the proceeds from the fund will be used to provide basic telecoms services in rural areas
that remain underserved due to logistical challenges and communal unrest, such as in Shan, Kayin, Kachin
and Rakhine States.
The government has set a target of 94.8% population coverage by the first quarter of 2019, to build on
the 90% covered in early 2018, according to the USS issued by the Posts and Telecommunications
Department with the assistance of emerging markets ICT consultancy firm Intelecon.
The Scheme
In broad terms, the USF will be responsible for the implementation of the USS, along with its programmes
and projects. In doing so, the USF will help to fund the deployment of basic infrastructure in unconnected
rural areas, with the intention of introducing more advanced telecommunications services in the future.
Starting in June 2018, Myanmar’s four mobile operators – the state-owned MPT, Telenor Myanmar,
Ooredoo Myanmar and Mytel – have been required to make financial contributions to USF. Over the initial
five-year period, it is estimated that the scheme will collect between $100m to $121m from operator
https://oxfordbusinessgroup.com/analysis/final-hurdle-officials-are-pursuing-99-mobile-signal-coverage-2022-which-will-be-funded-first
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