KDDI/Sumitomo to invest USD2bn on Myanmar business

17 Jul 2014

Japanese firms KDDI and Sumitomo have partnered to invest USD2 billion in Myanmar’s telecoms sector over the next ten years and have signed a memorandum of understanding (MoU) with state-owned telco Myanmar Posts & Telecommunications (MPT) to jointly operate a mobile network. According to the Irrawaddy, the Japanese firms will form a joint venture, dubbed KDDI Summit Global Myanmar (KSGM), next month which will upgrade and expand MPT’s cellular network, whilst MPT will split its earnings equally with the duo. Confident that the partnership will be able to capitalise on Myanmar’s massive untapped potential, KDDI’s senior VP Yuzo Ishikawa commented that the pair would ‘reach profitability in a short period of time.’ As previously noted by CommsUpdate, KDDI and Sumitomo have been involved in talks since January this year, after beating competition from France’s Orange Group and Singapore Telecom (SingTel) to form a partnership with MPT.

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