Telenor Myanmar, a former arm of Norwegian telecom provider Telenor, rebranded in June as Advancing Telecommunications of Myanmar, or Atom. Billboards in Yangon have been plastered with Atom ads under an aggressive campaign to build recognition for the new brand.
“Despite various challenges, we are still targeting to invest US$330 million over the next three years,” CEO Muhammad Ziaullah Siddiqui told Nikkei. About 70% will go toward updating Atom’s network and rolling out new services.
“We are gearing up to launch 5G nationwide in the coming years,” he said, adding that Atom could become the first operator to do so in Myanmar.
Telenor originally announced it would sell the unit to Lebanese investment company M1 Group. But Myanmar’s military-linked conglomerate Shwe Byain Phyu now holds an 80% total stake in Atom’s Singaporean holding company. “The regime pressured them to let a local company participate in the telecom business,” an industry source said.
Myanmar’s military detained Aung San Suu Kyi and other senior officials and took control of the government in February 2021. It restricted access to Facebook and Twitter after facing public pushback on social media.
Wireless networks remain offline in areas with armed resistance to the military. In August, a military spokesperson announced a plan to develop its own social media platform, as well as tougher potential restrictions on virtual private networks (VPNs), which many in Myanmar use to bypass the ban on Facebook and similar sites.
Myanmar’s resistance organisers rely on mobile networks to communicate. When asked about concerns over user data protection, Siddiqui said, “Customer privacy is our top priority and we will comply with local laws and international norms.”
In situations where Myanmar law conflicts with international norms, “Atom will review the changes and we will act [in] the best possible manner for our valued customers,” he said. The Myanmar government currently can legally suspend or intercept communications or take control of telecom services and equipment in an emergency.
Telenor was concerned that if it continued to operate in Myanmar, it could be forced to monitor communications in violation of the company’s human rights code.
In mid-August, Atom announced that it had engaged a globally reputed consulting firm made up of a “team of experts on human rights to support in reviewing and developing a Human Rights Action Plan.”
“We will act in a law-abiding, ethical manner when it comes to the installation, usage and/or transfer of lawful interception technology,” Atom said, and “there is no active interception at this stage.”
Qatar-based Ooredoo, which like Telenor entered Myanmar in 2014, is also considering selling its operations there. A Myanmar conglomerate and a Singaporean network structure operator are among the potential buyers, Reuters reported in July this year.
“A Chinese communications company could throw its hat in the ring as well,” an industry insider said.
Ooredoo Myanmar’s revenue increased 12% on the year in January-June, while its earnings before interest, taxes, depreciation, and amortisation doubled – a likely result of the government instructing telecom providers to nearly double their data rates in December.
Mobile service was heavily restricted when the military last controlled Myanmar until 2011, driving up the price of SIM cards as high as US$2,000 to US$3,000 on the black market. SIM cards became available for 1,500 Myanmar kyat (US$1.50 at the time) after Telenor and Ooredoo entered the country, and the spread of smartphones and expanded access to the internet and social media were some of the most visible changes brought about by Myanmar’s democratisation.
Two other domestic telecom providers operate in Myanmar, both in partnership with overseas players.
Military-affiliated Mytel launched its service in 2018, and has quickly expanded its share through discounted data rates and other promotions. It is 49% controlled by Vietnam’s military-owned Viettel.
“It has more users than Ooredoo, and is battling for second place with Atom,” an industry insider said.
Myanmar Posts and Telecommunications, the leading player, signed a deal in 2014 to undertake joint operations with a venture by Japan’s KDDI and Sumitomo Corp.
“We are deeply concerned about the situation in Myanmar regarding lawful interception and mobile internet shutdown in light of the importance of ensuring the use of communication for everyone and protecting its privacy from the perspective of human rights,” Sumitomo said in September last year.
The Japanese players will need to decide whether to renew the agreement before its expiration set in March 2025.
The Myanmar military aims to form a formal government through a general election in August 2023. The trustworthiness of telecommunications infrastructure has an impact on civilian life as well as investment decisions. Myanmar authorities face the task of ensuring free communications and preventing the abuse of power in the sector.
The situation in Myanmar highlights challenges businesses face when operating in countries mired in conflict and human rights concerns – including on how to responsibly exit such markets.
Telenor announced its exit from Myanmar in July 2021, less than half a year after the military takeover. But a conglomerate reported to have close ties to the military has ended up controlling about 80% of the telecom company’s Myanmar subsidiary, raising concerns about user data falling into the military’s hands.
Advocacy group Free Expression Myanmar in late July urged Ooredoo to “learn from the mistakes made by the Norwegian mobile telecoms business, Telenor, in its controversial sale earlier this year” as the Qatari carrier weighs an exit.
“International standards state that businesses should avoid causing or contributing to adverse human rights impacts and try to prevent or mitigate those impacts when exiting,” the group said.
Before companies make such decisions, “it’s important for them to listen to the views of people who might be exposed to human rights risks as a result of their withdrawal,” said an attorney at a law office in Yangon.