Myanmar opens up new telecoms frontier Vodafone has teamed up with China Mobile to compete against more than 20 other telecoms groups including one backed by George Soros for a mobile network licence in Myanmar, one of the most sought after new markets for communications in the world. Myanmar has begun the formal process of selecting two telecoms groups to build and improve its national mobile network. The process has attracted bids from most leading global telecoms groups as well as investors keen to tap into one of the few remaining untapped telecoms markets in the world. Myanmar is particularly attractive given a large and youthful population of about 60m and an economy growing at about 5.5 per cent annually, while mobile phone usage is below 10 per cent. This is significantly lower than other emerging economies, which has made the country one of the last frontier markets for global telecoms groups chasing new mobile users. The value of telecoms licences is not known but could be more than $1.5bn, according to regional telecoms analysts. Two licences are being tendered to build, own and operate national mobile networks for 15 years. The government has received 22 applicants for pre-qualification, with the first round of selection expected as early as next Thursday, according to those involved in the bidding. The two successful bidders will be announced by the end of June. The tender is the first big public contract outside the natural resources sector to be opened to international companies by Myanmar's two-year old reformist government. It comes amid rapid economic liberalisation as Myanmar rushes to attract foreign investment after decades of isolation under military regimes. Up to now, the sector has been controlled by Myanmar Post and Telecommunications, the state-owned telephone service provider. The list of bidders includes a joint venture between Vodafone and China Mobile, while Mr Soros's Quantum Strategic Partners is backing Digicel Group, the mainly Caribbean-based telecoms company, which has teamed up with Myanmar-owned Yoma Strategic Holdings. Vodafone and China Mobile have signed a strategic agreement for their bid. The two companies have a long history of co-operation. The UK-based telecoms group was a shareholder in China Mobile up to 2010. The Myanmar communications sector is "about to enter a period of rapid structural expansion as the government seeks to increase the number of mobile operators from two to four," according to Vodafone. Mobile telecoms services are seen as crucial to the country's future social and economic development. Mr Soros said: "The liberalisation of the telecommunications market in Myanmar will serve as an important economic stimulus for the country." One Bangkok-based telecoms analyst said: "Basically the only way to go with telecoms in Myanmar is "up" - this is one of the last remaining untapped markets." Yoma Strategic, the only listed majority Myanmar-owned company, has up until recently focused on real estate development in Myanmar but has diversified and expanded rapidly in the past year, acquiring interests in tourism, retail and other sectors. Serge Pun, who owns a majority stake in Yoma Strategic, told the Financial Times on Thursday that "shared expertise and experience" put the three consortium partners "in a unique position." The move into telecoms follows a series of meetings between Mr Soros and Mr Pun. Their telecoms partnership is likely to lead to joint investment projects in other fields, according to people close to the group. Interested parties ● Vodafone / China Mobile ● Digicel / Quantum Strategic Partners / Yoma Strategic ● MTN Consortium ● STT / Bewell / Frontier Communications ● China Telecom ● ACO Investment Group ● Asia Megalink (local) ● CP Group / True / Thana Telecom ● SingTel / KBZ (local) / M-Tel ● Telkom Indonesia / Myanmar Communication Network (local) ● Axiata ● Telenor ● Viettel ● KDDI / Sumitomo / A1 (local) / Myanmar ICT Development Corporation ● Orange / Marubeni ● Orascom / EPIC ● Airtel ● First Pacific ● SK Telecoms / Red Link ● Millicom ● Qatar Telecom / Oerdoo