Back in February 2014, we spoke to Christian Strømme, Managing Director, GSMTOWERS, about his company’s activities in Myanmar. We thought that we would get back in touch with him to review progress. Since our last interview, GSMTOWERS has rolled out almost 400 towers across Myanmar and is now offering a full turnkey solution to the local tower company Irrawaddy Green Towers (IGT). But the company also has ambitious plans for the future which include renovating and upgrading MPT’s legacy infrastructure.
TowerXchange: We last spoke with you about your work in Myanmar in early 2014. Could you give us an update on how your projects have proceeded?
Christian Strømme, Managing Director, GSMTOWERS:
We’ve been working with the local tower company Irrawaddy Green Towers (IGT) right from the beginning. In fact, our partnership dates back to the time when they received their very first tower order and they had to go through the whole state approval process. In 2014, we rolled out 300 towers across Myanmar, and did 121 structural surveys and analyses for KSGM and this year we expect to add an additional 100 towers and will do tower strengthening on another 65 sites.
Our partnership with IGT has evolved over time. There was a development six months ago that provides a good illustration of how things have changed. Up to 2014, we were working in a supply only role. Now we offer a turnkey solution that involves everything from site acquisition through construction to RFI.
TowerXchange: How have the telecoms and import regulations changed?
Christian Strømme, Managing Director, GSMTOWERS:
There have been a lot of changes in terms of import regulations. When we started operating in Myanmar, the new telecoms laws were shrouded in mystery – no one knew exactly what was happening. Getting an import license was an issue so we had to find alternative routes to market. Now the import system is well established and all MNOs have import licenses. As a result, everything is now imported by the MNOs or towercos directly.
When we first started out we had to send product descriptions with each shipment. But now we just have to include a packing list and bill of ladings. There’s much less hassle, which is a big plus. Last year we had to get towers approved by Yangon City Development Committee (YCDC) and the regional state governments, which was at the time a big issue, as it was a first time for them as well. Now all is much easier as the processes are known, and well tried. However, I should mention that buildings and local permits are still issued separately. So when we buy land we have to get approval from municipalities and villages.
We also find it is harder to buy land on behalf of Ooredoo Myanmar than Telenor. Sometimes, local monastic institutions raise objections to Ooredoo plans, which can cause problems. But we’re still making progress.
TowerXchange: Conditions on the ground including weather and infrastructure have been a problem from the start in Myanmar. Have there been any changes or improvements?
Christian Strømme, Managing Director, GSMTOWERS:
We’re now moving deeper into rural areas so transport infrastructure has become an issue. We’ve had to contend with a tough rainy season which is only coming to an end now. The rain removed a lot of the existing infrastructure as it does every year so we are having to contend with considerable environmental challenges. On the positive side, it is now possible for us to move more around and get to sites by car.
There are cases when we have to improvise to get items on site. For example, we recently had to build an elevated track over a wetland to move a diesel generator. To accomplish this, we asked a sub-contractor to build a track along the wetland. We then built a simple train track and used an old train wagon to move it. Because the terrain was so difficult we also had to build a small bridge to move the item along the track.
That gives you an idea of some of the problems that we encounter out in the field. That’s why it’s vital to have a good local logistical partner in Myanmar.
Talking about infrastructure generally, it’s clear that there have been some improvements over the past two years. You can see lots of road building activity in and around Yangon. There are more small vehicles on the road and the government seems to be putting a concerted effort into building slide bridges. In the rural areas, villages are insisting that their roads be rebuilt as part of a site acquisition agreement. We often find that when we buy land for a customer, the local chief will insist on road repairs as part of the deal.
The overall pace of the rollout hasn’t slowed, although admittedly there have been some quiet periods between the three phases. Last year, for example, there was a dip in activity around Christmas when the Optima project (Editor: Optima was the proposed shared rollout between Telenor and Ooredoo) fell through. But after that plans went back into high gear.
Up 2014, we were working in a supply only role. Now we offer a turnkey solution that involves everything from site acquisition through construction to RFI
TowerXchange: How have your operations in Myanmar changed? What have been the main lessons learned so far?
Christian Strømme, Managing Director, GSMTOWERS:
We have made some changes to the way in which we supply towers. We now have heavier pieces that come in fewer parts. At the start of the year we decided to adapt our original design – we went from having more lightweight pieces in a four legged model to a three legged tubular model, to reduce the number of pieces in the tower. This was due to feedback from our clients, that they kept losing pieces. A total of ten tonnes of steel went missing. We came to the conclusion that our design had too many small parts in it which meant that parts could go missing or be stolen. As a result, we’ve adapted our original design (easier to hand carry) to one that it is more easily manageable. We’ve also cut down on any redundancies to ensure that there are no lost pieces. On the whole, we’re happy with the decision. Although we have fewer options for upgrades later, and it is more difficult to hand carry, we’ve been able to reduce our risk exposure. We can also rollout parts much faster.
Since making the decision to change the design of our product we’ve also acquired our own warehouse. It’s allowed us to better monitor and store stock. It’s also helped us to realise our goal of becoming more of a full service, turnkey provider. Nowadays, we look after the stock to ensure that there isn’t any mismanagement.
TowerXchange: What does the future hold for GSMTOWERS in Myanmar?
Christian Strømme, Managing Director, GSMTOWERS:
We got our first contract as a turnkey service provider in August 2015. Since then we’ve completed our site acquisition and are finalising the first towers on air.
In addition, we’re also involved in providing upgrades to the legacy infrastructure in Myanmar owned by MPT. As part of this project, we’re working with KSGM to repair these towers and make them shareable. Typically, they tend to be old structures that pre-date the recent rollout.
We started servicing these structures last year and will begin repairing them this year. It’s all part of our soft move into full turnkey status.
