MPT/KDDI pact misses deadline as talks drag on

10 Jun 2014

National fixed line incumbent Myanmar Post and Telecommunications (MPT) is continuing talks with Japan’s KDDI over a potential partnership, despite negotiations passing an internal deadline, Myanmar Times writes. KDDI was selected as a preferred partner through a closed tender last year which also involved France’s Orange Group and Singapore Telecom (SingTel), and despite announcing that an agreement would be in place by the end of May, the duo are yet to finalise a deal. U Than Tun Aung, a senior MPT official explained that ‘both sides want to sign an agreement as soon as possible, but detailed discussions still continue,’ adding that he was unable to confirm a target date for signing a pact. The official went on to say that a joint operations agreement would be signed before a joint venture partnership deal, with both firms set to provide different amounts of capital.

A spokesperson for Myanmar’s Ministry of Communications and Information Technology (MCIT) elaborated, noting that there were several issues still being hammered out: ‘The main thing we are now discussing is what appointments MPT’s staff will hold in the new partnership, as well as an agreement on technology and investment.’ The paper also cites another source requesting anonymity as saying that the main sticking point was the future of MPT’s 11,674 staff in the deal.

Myanmar, KDDI (au), Myanmar Post and Telecommunications (MPT)