Viettel to invest the biggest amount ever into Myanmar
Viettel to invest the biggest amount ever into Myanmar
Viettel recently announced that it would invest $1.5 billion into Myanmar to build the country’s fourth mobile network.
As such Myanmar is the foreign market where Viettel is investing the biggest amount among all of the company’s foreign markets up to now. The title formerly belonged to Tanzania where Viettel put in $1 billion.
According to Viettel, its Myanmar network is going to cover 95 per cent of the population in three years. In order to meet the rapidly increasing demand for data, Viettel is going to build provide 3G services at the frequency bands of 900MHz and 2100MHz. The network is going to provide 4G services on the 1800MHz frequency if the Myanmar government allows it by the end of this year.
Smartphone use in Myanmar is now 60 per cent. With GDP growth of over 8 per cent a year, Myanmar is going to see a big increase in the demand for data.
Myanmar only gives four licences to provide telecom services, two to foreign private companies, two for domestic companies. Viettel’s joint venture with Myanmar National Holding Public Limited and Star High Public Company Limited is the last provider accepted to provide telecom services in the country.
The two Myanmar companies are going to contribute 51 per cent of the capital in the joint venture.
“The cooperation with local companies with experience is going to help Viettel quickly build a network with wide coverage that truly meets the demand of Myanmar people,” Viettel said.
Viettel is now operating in 10 foreign countries, its operation in six of which has started making a profit according to deputy general director Tao Duc Thang. The revenue from foreign markets was $1.5 billion in 2015, growing by 25 per cent on year. The company targets to be present in 20 countries by 2020.
According to Brand Finance’s recently released report, Viettel ranks 7th among the top 20 Most Valuable ASEAN Telecom Brands 2016, jumping from 17th last year, and is valued at $973 million, rising 68 per cent. Meanwhile MobiFone ranks 15th, going up four steps, and is valued at $593 million, up 76 per cent. Vinaphone ranks 20th and is valued at $282 million, up 47 per cent compared to 2015.
Viettel also ranks third in the Top 5 best performing telecom brands in ASEAN. It has also made it into the world’s Top 100 most valuable telecom brands, ranking 93rd.
