Sherpa Hossainy's Blog

Telco licence committee releases prequalification documents

Posted in Business, Myanmar, Telecommunications by Sherpa Hossainy on July 9, 2013

Published in Myanmar Business Today (Vol 1, Issue 11) on April 4, 2013

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The government committee overseeing the bidding process of two nationwide telecom licences last month released a document, which provides an insight into the committee’s priorities, the required structure for the operators and some of the tender logistics.

The Telecommunications Operator Tender Evaluation and Selection Committee released the 70-page “Prequalification Questions and Answers” document on the Ministry of Communications and Information Technology’s website on March 21.

VDB Loi, a specialised law and tax advisory firm that has more than 60 transactional lawyers and tax advisers working in offices in Cambodia, Indonesia, Laos, Myanmar and Vietnam, released an analysis of the document on March 22, clarifying the documents for potential bidders.

Edwin Vanderbruggen, a partner at VDB Loi, who also co-authored the analysis, said, “The required experience component of bids is a hard and fast rule.”

“The committee will not be flexible on the operational requirements for the experienced operator (four million subscribers in one country, one million subscribers in a second country). In the Q&A, the committee rejected to accept for example secondary experience of one million subscribers in two countries,” the analysis said.

“The committee confirmed that the licence shall grant the holder the right – but put them under no obligation – to provide both fixed line and mobile services. The licensee will also have the ability to provide internet services. International gateways will also be allowed,” VDB Loi’s analysis said.

The committee also clarified that bids cannot be changed later or the bid will be immediately ruled out. “One cannot put in a bid alone if one was prequalified as part of a consortium. One cannot put in a bid with a consortium if one was prequalified as a member of another consortium,” the analysis said.

Regarding transfer of shares in the Myanmar company that receives the licence the clarification said, “After the licence is awarded, the shares in the Myanmar registered company can be transferred, but with permission from the authorities.” Also there will be only one experienced operator in a consortium.

“Every Applicant that meets the requirements will go on to the next round, the invitation to tender. This also means that there is no maximum number of prequalified applicants,” the analysis explained.

The new draft of the Telecom Law is set to be released on April 11, the committee announced.

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