Thursday, June 27, 2013
Myanmar Telco: Investors will be disappointed after Myanmar's Parliament announced that it has voted to delay awarding the award of its two highly coveted telecommunications licenses, agreeing unanimously to wait until a new telecommunications law governing the industry is passed, according to a lawmaker. In comments to The Wall Street Journal, Myanmar note that the "industry risked being monopolized" if the winners of the telecommunications license were announced before a new telecommunications law is passed. Interesting to note that in its new proposal to parliament, a clause was included that only foreign companies with a local joint-venture partner should be granted a telecommunications license, although it is unclear whether this new rule will be adopted, or when the winners will be announced. If this clause is adopted, we note that it could effectively place a couple of bidders as ineligible, as some of the 11 bidders are not partnering any local partners in their bid.