Myanmar's New Telecommunications Law

On October 8, President Thein Sein of the Union of Myanmar signed into effect the Telecommunications Law ("Telecom Law").1 As part of Myanmar's continuing effort to open up the country to the rest of the world and, in particular, foreign investment,2 the Telecom Law was clearly drafted with foreign investors in mind. This is unsurprising given the relatively undeveloped current state of Myanmar's telecommunications industry, where less than nine percent of Myanmar's population of 60 million owns a mobile phone,3 as well as the need to attract foreign technology and know-how to develop this vital and burgeoning sector. Indeed, an express objective of the Telecom Law is to support the modernization and development of Myanmar by means of telecommunications technology.4

As one of the last untapped telecommunications markets in the world, the opening of Myanmar's telecommunications market has attracted the attention of many foreign investors. Notably, the recent highly publicized auction of two domestic telecommunications licenses attracted bids from such high-profile global players as Airtel, Axiata, Bharti, China Mobile, KDDI, Ooredoo, Singtel, Sumimoto, Telenor, Vodafone, and George Soros. On June 27, the Ministry of Communications and Information Technology ("MCIT") announced that Norway's Telenor and Qatar's Ooredoo (also known as Qatar Telecom or Q-Tel) had been awarded licenses to build Myanmar's telecommunications network and run a nationwide wireless network in Myanmar for 15 years.5

This Commentary summarizes the key provisions of the Telecom Law that may interest prospective foreign investors.

The Telecom Law

What Services Are Covered by the Telecom Law? The Telecom Law sets forth at a high level the licensing regime for the provision of telecommunications services. The range of telecommunications services covered by the Telecom Law is broad and all-encompassing. Such services include (i) the provision or operation of infrastructure or network facilities, (ii) the provision of service for transmission and reception of information, and (iii) the provision of services by way of transmitting and receiving.6

Who Can Apply for a License, and What Is the Application Process for a Service License? The Telecom Law was drafted to apply to both local and foreign licensees, with slightly different rules applying to each. A local or foreign applicant who wishes to offer telecommunications services in Myanmar is required to apply for a...