Japan firms aid Myanmar in building telecom network

Sumitomo and two business allies, NEC and NTT Communications, have concluded a contract with the Myanmar government to build an optical fiber telecommunications network to link the country's three major cities.

Under the contract, the three vendors will build a core high-speed network capable of transmitting data at 30 gigabits per second (Gbps), linking the cities of Yangon, Mandalay and Naypyitaw through the Web, The Japan Times reported on Tuesday.

The trio will also lay down fiber-optic networks inside each of the three cities to transmit voice and other data at a speed of 10 gigabits per second (Gbps). The networks will also provide services such as long-term evolution (LTE) high-speed wireless communications, fixed-line phone, and Internet connections.

The companies said they will take advantage of a 1.71 billion yen (US$16.7 million) grant which the government pledged to provide to Myanmar in late-December.

They hope to complete construction of all necessary facilities by the end of November, and provide operational support between December and mid-January to enable Myanmar people to utilize the new facilities.

In a previous ZDNet Asia report, industry watchers said Myanmar was one of the few relatively untapped telecommunication market left in the world with its once-reclusive government opening the sector for foreign investment. However, the country's unclear regulatory regime and ICT infrastructure which does not support business growth meant telcos and service providers looking to enter Myanmar must advance with caution.