Telenor Group today announced that it has signed an agreement with the Union Government
of Myanmar for a nationwide telecommunications license. The license includes spectrum
in the 900MHz and 2.1GHz bands and is valid for 15 years. Telenor aims to provide
accessible and affordable mobile communications to people across Myanmar, and will
launch services within eight months after the license is awarded.
"The people of Myanmar are ready for world-class mobile services and Telenor is
ready to deliver it," said Jon Fredrik Baksaas, President and CEO of Telenor Group.
"A major milestone has been passed with the signing of the nationwide telecommunications
license agreement with the Myanmar government. This is the start of an exciting
journey in Myanmar's development, which Telenor will support through the delivery
of world-class mobile services, responsible business practices and high standards
that we live by in all of our markets," added Baksaas.
With a population of around 60 million, of which less than 10 percent have access
to mobile services, Myanmar represents a strong business opportunity for Telenor
in Asia. Telenor Group will build on its global and regional experience to establish
Telenor Myanmar as a successful mass market operator.
There was record interest for the license award process in Myanmar with more than
91 companies expressing interest to participate. Following announcement on June
27 last year of the successful applicants, Telenor entered into consultation with
the authorities to finalise details of the policy framework.
"The license is a product of an extensive consultation process with the Government
of Myanmar and international organisations. It now represents an acceptable framework
that we believe will go a long way to provide the necessary long-term predictability
that Telenor requires when it formally starts operations in Myanmar," said Sigve
Brekke, Executive Vice President of Telenor Group and Head of Telenor's Operations
To secure a rapid roll-out, Telenor has already appointed a management team and
has initiated ongoing recruitment of employees on all levels. Currently, the company
has a workforce of 150, and is expected to hire 1,000 full-time employees by the
end of 2014.
"We are fully focused on a rapid roll-out of our network and establishing an extensive
distribution system to make services easily available to the population. By offering
high-quality products and excellent customer experience, we aim to create loyalty
and trust with our customers in Myanmar," said Petter Furberg, CEO of Telenor Myanmar.
Telenor will build a state-of-the-art mobile network using HSPA and LTE-ready technologies,
and plans to provide network coverage for 90% of the population in Myanmar within
five years. Voice and data services over 2G and 3G will be commercially launched
as Telenor's initial offering, ensuring that consumers get excellent voice quality
and high-speed data connectivity.
Telenor targets EBITDA break-even in Myanmar within three years after the license
award. The total peak funding, defined as the license fee plus accumulated losses
until operating cash flow break-even is expected to be around USD 1 billion. The
license fee is USD 500 million.
Analyst and media conference
Telenor Group will hold a press and analyst conference shortly, at the Telenor Group
Visitor Centre. Further details to be provided in a separate invitation.
Telenor Group is an international provider of tele, data and media communication
services. Telenor Group has mobile operations in 12 markets in the Nordic region,
Central and Eastern Europe and in Asia, as well as a voting stake of 42.95 per cent
(economic stake 33 per cent) in VimpelCom Ltd., operating in 17 markets. Headquartered
in Norway, Telenor Group is one of the world's major mobile operators with 161 million
mobile subscriptions in its consolidated operations per Q3 2013, revenues in 2012
of NOK 102 billion, and a workforce of nearly 34,000.
Telenor Group Region Asia
Mobile: +66 82 479 4242
Head of Media Relations
Mobile: +47 92 66 13 00
Head of Investor Relations
Mobile: +47 91 61 76 31