edotco has been busy consolidating its new footprint in Myanmar since the acquisition of MTC last December. We caught up with Oliver Coughlin, MD of edotco Myanmar for an update on how the merger was progressing, and what new developments we can expect to see over the next few months.
TowerXchange: How have things progressed since the acquisition of MTC in December?
Oliver Coughlin, MD, edotco Myanmar:
By virtue of the detailed planning that took place pre the acquisition the transition has been very smooth, professional and very positive. The dynamics have changed somewhat due to the fact that Digicel was more of an operator and edotco is a pure towerco. I think that Digicel spotted a great opportunity in Myanmar, and edotco spotted a great company in MTC.
The acquisition has been extremely positive for our customers, staff and the future of company. edotco is investing in this market for the long haul with the goal of being the largest towerco and we’re happy to be a part of it. edotco also brings a lot of value including the capacity to monitor sites with echo; their methods are very useful and well proven in other markets.
TowerXchange: Do you have any further updates on whether edotco will be providing co-locations, build-to-suit, transmission, fibre and operations and maintenance in Myanmar?
Oliver Coughlin, MD, edotco Myanmar:
All operators in Myanmar are aggressively seeking co-location due the both the speed of rollout and the savings gained. From a co-location perspective edotco Myanmar continues to have the highest tenancy ratios in Myanmar, currently at 1.84 and heading for 2. This is mainly due to the quality and location of our 1,250 tower portfolio, and 98% of our infrastructure is specifically designed for multi-tenant occupancy; we have successfully co-located all of the operators. We can give each client immediate access to approximately 34% of the population as we have built towers in all of the main cities and large towns in Myanmar, and we have also built on the main transit routes between the commercial centres across the country.
With regards to build to suit, we are in discussions with a number of operators with a view to providing BTS solutions. edotco Myanmar has a great track record of building quality infrastructure in Myanmar, therefore we have the capability, the resources, expertise and the financial backing to expand our portfolio and this is our absolute intention. The time-frame will depend on successful conclusion of contract negotiations in the coming weeks.
edotco also has a proven track record of providing services such as transmission fibre and O&M in a number of markets in Asia and it is our intention to offer these services across Myanmar in the coming months as well.
TowerXchange: How is edotco adapting its power provision model for the Myanmar market?
Oliver Coughlin, MD, edotco Myanmar:
edotco Myanmar clearly understands that the provision of power is a pre-requisite to receiving an order for BTS in Myanmar; accordingly we are at the advanced stages of discussions with power providers and system integrators and should finalise these within the coming weeks. It is important to note that edotco provides power to operators as standard practice in a number of existing markets such as Bangladesh and Malaysia, therefore we in will benefit hugely in Myanmar from our colleagues’ experience in these other markets.
TowerXchange: Telenor continues to build new sites at a steady pace; how will this affect demand among towercos?
Oliver Coughlin, MD, edotco Myanmar:
Telenor have been very successful in Myanmar and I am pleased to say that we have a very successful co-location agreement in place with Telenor. We obviously hope to expand the services we provide Telenor and indeed all operators in Myanmar in the coming months.
edotco has clearly stated that its intention is to aggressively increase its portfolio in Myanmar, and this will be achieved by organic and inorganic growth opportunities
TowerXchange: How will the arrival of the fourth operator impact the market in Myanmar?
Oliver Coughlin, MD, edotco Myanmar:
From a consumer point of view, competition is good. edotco Myanmar is ideally suited to provide any new entrant with rapid access to approximately 34% of the population by virtue of the location and quality of our existing portfolio; considering our proven track record in building high volume rollout across the Union of Myanmar we look forward to any future opportunities with new entrants, although we understand this is a major undertaking for the regulators and the applicants and will take time to finalise.
TowerXchange: We predict that there will be at least one towerco acquisition by the end of 2016; what are your thoughts on this? Are there some opportunities for inorganic growth?
Oliver Coughlin, MD, edotco Myanmar:
edotco has clearly stated that its intention is to aggressively increase its portfolio in Myanmar, and this will be achieved by organic and inorganic growth opportunities. We do expect the towerco landscape to change in the coming years and we will evaluate every opportunity on its merit. Myanmar is a tough market and requires a lot of capability, resources and financial backing from those that would like to remain competitive. I have seen other companies enter this market with high aspirations, but the realities on the ground dictate that some will be looking for exit strategies in the short to mid term.
