Amara Communication Company wins high-speed internet service licenses
YANGON, 19 October 2016: The Ministry of Transport and Communication held auctions for 2600 MHz 4G spectrum at the Hotel Royal ACE on October 17, 18 and 19. Tender bids had been invited for the auction earlier in 2016 to encourage the development of nationwide high-speed internet services as well as to allow the Union to earn more tax revenue. Nine out of 20 companies were shortlisted for the auctions, and the final winners included Amara Communications Co. (ACS), a business unit of IGE.
To ensure fair bidding, a Simultaneous Multi-Rounds Auction (SMRA) was exercised with 32 auctions held over the course of the three days. Auction areas were divided into three geographical sections — Area 1 includes Nay Pyi Taw, Magwe, Bago, Mon, Kayin and Taninthari, with the minimum bid of US$3 million. Area 2 includes Yangon, Ayeyawady and Rakhine, with a bottom bid of US$7million. Area 3 includes Mandalay, Sagaing, Chin, Shan, Kachin and Kayah, with a minimum bid of US$5million. Area 1 winners include Fortune International, which bid US$7.3 million, and Global Technology, which also bid US$7.3million. Area 2 winners include ACS and Yatanapon Teleport Public Co., bidding US$95.82million and US$83.44million, respectively. For Area 3, Yatanapon Teleport Public Co. and ACS won the auction, bidding US$27.24million and 24.55million, respectively.
ACS will pay more than US$120 million to the State for the license fee for its winning bids in Areas 2 and 3. “In addition to paying the license fees, ACS will invest much more by installing high-quality equipment to provide LTD-4G internet lines to the public,” said Daw Aye Mya Mya Kyi, CEO of ACS. “We will also create more job opportunities for youths.” Daw Aye Mya Mya Kyi also said ACS will cooperate with overseas technical experts and experienced local staff to provide the latest LTE-4G internet technology to Myanmar customers. The 2600 MHz 4G spectrum auction was held with support from the World Bank, international legal consultant group DFDL, and Nordicity, a leading consulting firm specializing in policy, strategy, and economic analysis in the media, creative and information and communications technology sectors, which monitored the process for fairness.