Telenor isn’t new to the Asian market and with successful operations in Bangladesh, Malaysia, Thailand, India and Pakistan, its track record indicates sound foundations for the launch of its operations in Myanmar. With challenges such as climate, road conditions and specialised skills shortage, the path towards launching its 2G and 3G offering is a challenging one.
In an exclusive interview, Telenor Myanmar COO, Ole Martin Gunhildsbu, shares his views on the impact that mobile services will have on the country’s overall wealth and development and on Telenor’s sound business strategy for this their newest venture.
TowerXchange: What will it mean to the citizens of Myanmar to have access to mobile services?
Ole Martin Gunhildsbu, Chief Operating Officer, Telenor Myanmar:
Telenor believes that mobile communication services are a basic necessity for everyone. We see mobile technology as an ‘enabler’ that will create a positive impact on people’s lives and contribute to the overall economic development in Myanmar. Beyond the convenience that mobile communications services will bring to their daily lives – for instance, allowing them to stay in touch with family and friends more easily – mobile phones can also help to transform the lives of individuals in Myanmar by enabling financial inclusion, access to knowledge, and bridging the digital gap.
In addition, mobile technology has the potential to deliver many benefits and create opportunities that support the establishment of vital infrastructure that will spur innovation in other critical industries such as education, healthcare and finance, and contribute to overall socioeconomic development.
TowerXchange: What can you tell us about Telenor’s tower rollout in Myanmar?
Ole Martin Gunhildsbu, Chief Operating Officer, Telenor Myanmar:
We are working hard to reach our rollout targets and will launch our services as soon as the infrastructure and network is ready to deliver the high-quality services that we are committed to.
Our goal is to ensure that we can offer a smooth and high-quality network and services, and we believe that the time we have scheduled for the implementation is sufficient. We are committed to providing network coverage to 90% of the population within five years of our roll-out, and will continuously review our infrastructure needs to ensure that we are able to support the delivery of high-quality mobile communications services to people throughout Myanmar.
Telenor will launch with coverage in the main cities and then gradually expand as we complete more towers across Myanmar. The current plan is to roll-out of up to 8,000 base stations in the country.
We have partnered with telecommunications infrastructure providers Apollo Towers and Irrawaddy Green Towers to build and manage our telecom towers in Myanmar.
TowerXchange: How is Telenor planning to achieve 90% coverage within five years?
Ole Martin Gunhildsbu, Chief Operating Officer, Telenor Myanmar:
Telenor will launch and expand our network coverage areas from the main cities as we complete more towers across Myanmar, with the goal to provide network coverage to 90% of the population within five years of our roll-out.
An extensive distribution network will be the backbone of our mass market approach. As part of Telenor Myanmar’s network roll-out plan, we will recruit distributors and franchisees in each and every state and region in Myanmar with the goal of establishing a network of 100,000 retailers within five years of the network and service roll-out.
Our business plan for Myanmar is based on our extensive experience in running successful operations in all of the markets where we operate, including five other markets in the Asia region. The plan is also the result of a comprehensive, coherent and consistent planning exercise which encompassed all areas of our business and we are confident that we will be able to deliver on our commitments and support Myanmar in realising its telecommunications goals, while meeting the objectives of all our stakeholders.
TowerXchange: What are the key technical challenges Myanmar presents in terms of accelerated network rollout? In terms of permitting, climate challenges, transport infrastructure and deployment expertise?
Ole Martin Gunhildsbu, Chief Operating Officer, Telenor Myanmar:
There are always challenges when establishing a new business, especially in an industry as complex as the mobile telecommunications.
In Myanmar, many factors need to be considered when building the telecom network including build permits, climate, transport and deployment expertise.
With regards to permitting, we need to ensure we are collecting and verifying all legal documents to ensure we are dealing with the legal land owners as well as understanding and aligning with local authorities and on permit requirements.
Building towers in Myanmar’s wet season, also in light of road conditions and distances, is definitely a challenge we need to always take into account and one where our previous Asian expertise can surely help.
On the human side, there is a definitive shortage of skilled professionals for specialised tasks such as tower erection. We are also very actively involved to ensure local adherence to internationally recognised best practice health, safety, security and environment (HSSE) standards.
As is the case for all telecom operators around the world, building a network requires significant investment in infrastructure, and Telenor will be doing the same in Myanmar where we will invest to build a new and high-quality network.
TowerXchange: To what extent will the network in Myanmar be shared with Ooredoo, MPT and YPT?
Ole Martin Gunhildsbu, Chief Operating Officer, Telenor Myanmar:
We remain open to collaborating with other operators in the market and we support the government’s drive for infrastructure sharing as that is in the interest of all parties.
TowerXchange: How are the operators, towercos and regulators minimising parallel capacity?
Ole Martin Gunhildsbu, Chief Operating Officer, Telenor Myanmar:
From a tower perspective, 150 metres is the normal regulated distance between towers. The telecommunications infrastructure providers will usually try to minimise parallel capacity since it is in their interest for more than one operator to use their towers.
TowerXchange: How can Telenor offer affordable packages and provide “Internet for All” in Myanmar while balancing its capex and opex?
Ole Martin Gunhildsbu, Chief Operating Officer, Telenor Myanmar:
Our goal is to provide offerings that are attractive for the mass market in Myanmar and we have developed a clear roll-out plan to build an advanced mobile network that will deliver accessible and affordable services to people across Myanmar. For instance, our pricing plans, developed based on our experience in other developing markets and on the needs of the Myanmar market, will enable the mass market in Myanmar to enjoy Telenor’s innovative and affordable voice and data services.
Telenor has a long-term commitment in developing our operations and growing our presence throughout Asia, as demonstrated by the success of our businesses elsewhere in the region which, collectively, are a significant contributor to our company’s overall revenue. The major investment we are making in Myanmar further underscores our commitment to the region and to delivering the accessible and affordable mobile communications services that the market requires. The total peak funding, defined as the license fee plus accumulated losses until operating cash flow break-even, is expected to be around US $1bn. Telenor targets EBITDA break-even in Myanmar within three years after the license award. We are confident that we will be able to deliver on our commitments and support Myanmar in realising its telecommunications goals, while meeting the objectives of all our stakeholders.
TowerXchange: Who are your target demographics, given your decision to offer 2G and 3G?
Ole Martin Gunhildsbu, Chief Operating Officer, Telenor Myanmar:
Telenor’s focus is to provide affordable and accessible mobile voice and data services for the mass market in Myanmar, and we will have a variety of products and services that meet different consumer needs. Our initial offering will be launched simultaneously over a 3G and 2G network, providing customers with high-speed data connectivity and excellent voice quality. In addition, our state-of-the-art network will be 4G-ready for when the time comes for the next evolution.
Putting Myanmar in context - Telenor’s footprint in Asia
TowerXchange: Please tell us about Telenor’s footprint in Bangladesh, India, Malaysia, Pakistan and Thailand
Glenn Mandelid, Head of Media Relations, Telenor Group:
Telenor Group is a leading provider of mobile services in Asia. The Group has been present in the region since we first entered Bangladesh in 1997. Today, Telenor Group has operations in six Asian markets. In four of them, Telenor Group operations is amongst the top three players. In India we have license to operate in seven telecom circles, covering half the population of the country. Our operation in India, Uninor, is the most successful new entrant and one of the fastest growing operators in the country. Our latest addition is Myanmar, where we expect to launch services later this year.
TowerXchange: What is the relationship of Telenor with independent towercos in Asian markets beyond Myanmar?
Glenn Mandelid, Head of Media Relations, Telenor Group:
As a mass market operator it is important to focus on operational efficiency to keep cost low.For example, from our background in India we have learnt that outsourcing the tower operation allows us a more flexible solution that is more cost efficient and scaleable.
TowerXchange: Can you share the key features of Telenor’s Asian Internet for All initiative?
Glenn Mandelid, Head of Media Relations, Telenor Group:
The three strategic pillars in our Internet for All ambition are:
Enable people to use the internet (available network, affordable services, increase smartphone penetration)
Stimulate use (increase awareness, provide relevant content, partnership)
Monetize internet use (portfolios, packages, bundles)
TowerXchange: How would you sum up the technology evolution and investment in network infrastructure within Telenor’s Asian operations?
Glenn Mandelid, Head of Media Relations, Telenor Group:
Telenor is investing in networks that allow us to provide our customers with high-quality services in a cost-efficient manner. Our main focus is on operational efficiency, also when it comes to network deployment, so that we can deliver on our ambition to be a mass market provider of data services.
