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Telecoms battle to unlock demand in emerging Asia www.asia.nikkei.com

TOKYO/YANGON -- In a tiny village in central Myanmar, about a two-hour drive from the nation's second largest city Mandalay, electricity does not arrive through power lines. It comes from home generators or solar panels.

But that does not stop the locals from charging their smartphones.

"How many of you have a mobile phone?" the Nikkei Asian Review asked a gathering of several dozen residents, and almost everyone's hand shot up.

The spread of mobile telecommunications across emerging Asia is being spearheaded by foreign players, which offer high-speed 4G networks, music, mobile payments and other new services. The result is enormous growth in the market, as well as a rapid shift in both marketing mindset and lifestyles in such countries.

For Myanmar, the change came in 2014 when Norway's Tenor and Ooredoo of Qatar entered the market which had been dominated by state-owned Myanmar Posts and Telecommunications. The scope of the dramatic change can be measured in SIM card prices. What used to cost several hundred dollars now go for a little over $1 apiece.

As a countermeasure, the MPT in 2014 partnered with Japanese wireless carrier KDDI and trading house Sumitomo Corp. to establish a joint venture.

The estimated market share in 2016 is 47% for MPT, the largest, followed by 37% for Telenor and 16% for Ooredoo.

The mobile penetration rate in Myanmar has jumped from 3% just five years ago to 89% in 2016.

Foreign companies' strength is not limited to their financial power and technologies.

By importing the sales know-how they have acquired over the years, they have spurred demand in the country.

According to Yoshiaki Benino, chief operating officer of joint venture among MPT, KDDI, and Sumitomo, their partnership has "drastically changed the local staff's attitudes."

Before they joined hands, MPT did not even have sales officials. In May this year, when the nationwide 4G mobile phone service launched, technical staff members and others who have moved to sales positions traveled from village to village by bike.

Benino said there has been a shift from their passive attitude that depends solely on the customer's willingness to buy.

Benino said they have started thinking seriously about the most effective ways to sell their products.



Published Date:2017-09-25