Myanmar's state-owned telco, Myanma Posts and Telecommunications (MPT), has racked up about 18 million subscribers – nearly three times the number it had in 2014, according to third-quarter financial results for its Japanese partner KDDI.
KDDI president Takashi Tanaka called Myanmar the main driver of profits for KDDI’s services outside of Japan, as well as a growth market.
The company’s operating revenue for its global services business, which includes its Myanmar operations, came to 223.1 billion yen (US$2 billion) for the nine months ended on December 31 of last year.
Third-quarter operating revenue was 70.3 billion yen ($620.7 million), down nearly 8 percent from the previous quarter.
Operating revenue for the nine-month period did increase year-on-year, however, with the company citing a 1pc boost on the same period in 2014 that came down “to the increased revenues from the telecommunications business in Myanmar” among other factors.
Meanwhile, operating income across the company’s global services businesses dipped from 8.6 billion yen ($76.1 million) in Q2 to 5.7 billion yen ($50.1 million) in Q3. Total operating income for the nine-month period was 25.6 billion yen ($226.0 million).
Mr Tanaka emphasised moves to improve customer care in the February 9 earnings presentation, and said that MPT would build up points of contact with users to boost its base.
The joint operation has upped MPT’s tower count and launched marketing campaigns in the third quarter, according to KDDI. The company did not specify the number of towers and MPT did not provide comment by press time.
MPT, which before 2014 ran the telecoms market as Myanmar’s sole mobile operator, has had to upgrade its offering to do battle with relative newcomers Ooredoo and Telenor – foreign firms that have lured millions of subscribers to their services in less than two years of operation.
Mr Tanaka said that in Myanmar, competition is growing fiercer between mobile operators.
“The competition is likely to intensify. In terms of profit we don’t want people to have such high expectations as you had for the first half [of the year],” Mr Tanaka said in the company’s earnings presentation.
“In terms of revenue, it should be positive going forward. In terms of profit, income, we would like to see further improvement.”
The company also noted currency challenges in the Myanmar market, with global business sector general manager Hidehiko Tajima saying the kyat depreciated quickly against the US dollar between the second and third quarter.
“After the general election, [the currency] has stabilised,” he said. “The kyat is now strengthening.”
The kyat has gained more than 5pc this year to K1230 to the US dollar yesterday, according to the Central Bank of Myanmar rate.
As the market incumbent, MPT was well equipped to do battle with foreign entrants Ooredoo and Telenor in 2014 but the firms have quickly gained ground with customers.
In its latest financial results, Telenor reported it has captured 14 million subscribers, which translates to an estimated 37 percent SIM market share, according to the company.
Meanwhile, the market awaits a fourth nationwide telecoms licence holder, which will take the form of a joint venture between a local consortium, a government stakeholder and a foreign partner.
With four telcos operating in the market, differentiation could get even more important.
“Going forward, KDDI plans to further enhance levels of network quality, expand the service area in line with customer traffic, enhance its offerings of more detailed customer support, introduce easy-to-use rate systems, and augment services for corporate customers,” the company said.
Source: http://www.mmtimes.com/index.php/business/18980-mpt-leads-subs-race-with-18-million-users.html