Myanmar Telecom

Sojitz-led team beats Huawei in 7 bil. yen telecom deal in Myanmar

23, Nov. 2019

Tha Oo (3rd from L) and Kyaw Myo (C), both deputy minister for transport and communications of Myanmar, and Ichiro Maruyama (3rd from R), Japanese ambassador to Myanmar, attend a ceremony in capital Naypyitaw on Nov. 20, 2019, to sign a contract for upgrading the Southeast Asian country's telecom network. A Japanese group led by Sojitz Corp. has won the deal against a Chinese-South Korean team. (Photo courtesy of Sojitz Corp.)

YANGON, NNA - A team of Japanese companies led by trading house Sojitz Corp. has won deal to upgrade telecommunications infrastructure in major political and business districts in Myanmar, beating a consortium comprising China's Huawei Technologies Co. and South Korea's KT Corp.

The team, which also includes NTT Communications Corp., NEC Corp. and an NEC subsidiary, sealed a 7 billion yen ($64 million) contract on Wednesday with Myanmar Posts and Telecommunications, a top telecom operator in the Southeast Asian country.

The deal calls for tripling by 2021 the capacity of a telecom network connecting the three major cities of capital Naypyitaw, commercial hub Yangon and Mandalay as well as the Thilawa Special Economic Zone.

The project will support a future cellular network based on the latest 5G technology, according to a joint statement released on Wednesday.

It will be Myanmar's first telecom project to be funded by a low-interest loan from the Japanese government. The current telecom network was introduced in 2013 with the help of Japanese grant aid.

Myanmar needs to improve its telecom infrastructure as the rate of mobile phone users has increased to more than 90 percent of the population from 10 percent in 2014, and there is insufficient capacity to handle the growing volume of data traffic, according to the statement. (NNA/Kyodo)

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