BURMA: SLOW EXPANSION OF THE INTERNET

UNCLAS SECTION 01 OF 03 RANGOON 000814 SENSITIVE SIPDIS STATE FOR EAP/MLS; EB/CIP/BA; INR/EAP PACOM FOR FPA TREASURY FOR OSIA:SCHUN E.O. 12958:N/A TAGS: ECON ECPS PGOV BM SUBJECT: BURMA: SLOW EXPANSION OF THE INTERNET RANGOON 00000814 001.2 OF 003 ¶1. (SBU) Summary. Despite the GOB's continued efforts to limit access to the outside world via the internet, Burmese continue to find creative ways to circumvent regime bans. Users employ proxy servers or web tunnel programs to access blocked programs, such as free email providers, chat rooms, blogs, and voice-over-internet protocol (VOIP). Internet access is widely available in large cities, and entrepreneurial Burmese are expanding access to rural areas with new cyber cafes. Despite high costs, internet use in the past eight years has increased from 2,000 users in 2000 to more than 400,000 estimated in 2008. The GOB plans to increase internet penetration throughout the country from 0.3 to 0.5 percent by the end of the year by granting licenses for new cyber cafes - but at the same time will continue its efforts to obstruct access to websites it deems sensitive. End Summary. Internet Connectivity on the Rise -------------- ¶2. (SBU) Despite GOB efforts to limit access to "sensitive" websites (international news, blogs, and any websites with anti-government content),internet services are readily available in parts of Burma. The country has two national internet service providers (ISPs),one controlled by the Ministry of Post and Telecommunications (MPT) and the other run by semi-private (but MPT-controlled) Myanmar Teleport. (Note: Myanmar Teleport, previously known as Bagan Cybertech, was established in 2000 by former Prime Minister Khin Nyunt's son. After Khin Nyunt was ousted in 2004, the company was sold and renamed. End Note.) The GOB plans to allow Chinese-owned Alcatel-Shanghai Bell to start a new ISP by December. According to Mya Han, Managing Director of Fortune International and owner of two large internet cafes, the new ISP will also be controlled by MPT. Burmese internet users have six ways to connect to the internet: dial-up, three types of broadband connections (ADSL, IPSTAR and wireless local loop),VSAT (Very Small Aperture Terminal) satellite, and recently introduced Wi-Max services. ¶3. (SBU) MPT records list approximately 40,000 internet subscribers throughout the country, although officials estimate that each subscription services an average of ten people, up from six in ¶2006. MPT reports that internet use has increased substantially since 2000, from 2,000 to more than 400,000 users. Even so, Burma still has one of the world's lowest per capita rates of internet use, according to the Economist Intelligence Unit, and internet penetration is estimated at 0.3 percent, according to unpublished official figures. -------------- -------------- Cost of Internet Services in 2008, Burma In U.S. Dollars* -------------- -------------- Service Start Up Cost Monthly Cost -------------- -------------- Dial Up 40.00-50.00 25.00** Broadband ADSL 1000.00 b/t 30-125*** IPSTAR 2000.00 1.00 per kilobyte Wireless Local Loop 1500.00 N/A VSAT 2000.00+ N/A Wi-Max 1800.00 b/t 30-125*** -------------- -------------- *calculated at 1270 kyat/$1 RANGOON 00000814 002.2 OF 003 **cost of 60 hours per month. 10 hours/month costs UD6.50 ***ADSL and Wi-Max: USD 30 for 128 MB; USD 70 for 256 MB; USD 125 for 512 MB Source: Ministry of Post and Telecommunications; Myanmar Computer Federation ¶4. (SBU) According to Thaung Tin, Secretary of the Myanmar Computer Federation, a government-mandated but privately run group of companies that work in the computer industry, most at-home subscribers opt for dial-up services because it is the most affordable, though connections speeds are extremely unreliable and slow (less than 24 kilobytes per second) due to poor quality phone lines. Approximately 3,000 customers, primarily businesses in Rangoon and Mandalay, use ADSL or broadband, which have speeds of anywhere between 64kps to 512kps. Currently, only approximately 1,000 people subscribe to Wi-Max, introduced by Myanmar Teleport in January 2008, but the number of customers increases monthly, Thaung Tin told us. Outside of the larger cities, rural communities are forced to use the more than 1,000 IPSTAR terminals (which use bandwidth acquired from Shin Satellite, owned by former Thai Prime Minister Taksin) to access the internet. Wireless local loop, which in 2003 had approximately 2,000 subscribers, is now virtually obsolete in Burma, and the cost of VSAT is too prohibitive for most Burmese. Avoid High Costs, Use Cyber Cafes -------------- ¶5. (SBU) Due to the high cost of internet subscriptions and the lack of private computer ownership, the majority of Burmese internet users rely on cyber cafes. According to Khun Oo, Vice President of the Myanmar Computer Professionals Association, a government-mandated but privately-run group that represents computer technicians, there are more than 400 internet cafes in Rangoon and over 500 more throughout the country. Most cyber cafes have between 10-30 computers available and charge an average of 500 kyat (USD 0.40) per hour in Rangoon. In addition to cyber cafes, internet is available at many hotels, computer training centers, and some universities. The American Center and the British Council are also popular free internet access locations. ¶6. (SBU) According to Khun Oo, the GOB requires all internet cafes to register. Myanmar InfoTech, a private consortium of 50 local companies supported by the MTC, issues cyber cafe licenses on behalf of the GOB. Although these licenses are relatively easy to obtain, the GOB requires cafe owners to register users before allowing them internet access; take screen shots from all computers in use every 15 seconds; and submit a usage log to MPT every two weeks. Thaung Tin told us that approximately 250 of the 400 internet cafes in Rangoon are licensed. However, the GOB has done little to shut down unregistered cafes, despite efforts to monitor internet usage. Khun Oo informed us that the GOB wants to improve internet penetration throughout the country, and hopes that by granting new licenses, it can increase the overall penetration rate to 0.5 percent by the end of the year. ¶7. (SBU) Despite the expense of a cyber cafe for ordinary Burmese, demand, particularly among the younger generation, has increased. These users are primarily interested in email and chat rooms. More and more young people, Khun Oo noted, use voice over internet protocol (VOIP),such as Gtalk or Skype, to contact family and friends outside of Burma. Internet users at some universities and other public access centers employ computers for academic research. RANGOON 00000814 003.2 OF 003 Circumventing Internet Bans -------------- ¶8. (SBU) The Burmese government has banned access to free email sites, such as Yahoo! and Hotmail and some VOIP services to control access to the outside world. VOIP services allow people to make inexpensive international phone calls over the internet, thereby preventing the GOB from collecting revenue from overpriced international phone calls. Additionally, the GOB feels threatened by VOIP programs, as it is unable to monitor those phone conversations. To date, Gtalk is the only VOIP service that has not been banned. ¶9. (SBU) The government uses programs such as Dan's Guardian and Fortinet's Fortiguard to block specific internet sites. Mya Han told us the GOB utilizes monitoring software that checks emails for key words/phrases and large attachments. Many of our NGO and business contacts confirmed that when using an internet account with a .mm domain, some email arrives instantly, but most messages are delayed up to 24 hours, presumably because the government scrutinizes messages with large attachments. ¶10. (SBU) In order to circumvent these prohibitions, the majority of Burmese cyber cafes utilize proxy servers or web tunnel programs to access restricted sites. Most cafes change their proxy servers daily, while others openly list proxy websites that will enable users to enter blocked domains. Burmese consumers complain that while these programs work, they significantly reduce the speed of the internet. Thaung Tin explained that MPT and Myanmar Teleport continually add foreign proxy and tunnel servers to the domain blacklist, but that they are unable to block all programs. Both MPT and Myanmar Teleport want to make a profit from internet usage, he rationalized, and to uphold all bans would significantly cut into profits. Instead, he opined, these organizations appear to "restrict internet access to the minimum extent possible." Comment -------------- ¶11. (SBU) Although the Burmese government views the internet as a platform for Burmese dissidents, both inside and outside the country, there appears to be a healthy, albeit small, internet market in Burma in spite of GOB restrictions. The GOB finds itself in a precarious position - it wants to show the world that it is encouraging internet growth, but at the same time, it does not want to lose control over the internet. The GOB may be fighting a losing battle, as even government entities are condoning the circumvention of internet bans in order to make a profit. Additionally, several Embassy contacts observed that ISP officials could be doing a better job of blocking websites and proxy servers; instead, they appear to be doing the minimum necessary to keep their supervisors happy. As the number of computer savvy Burmese increases, they will become more adept at evading the government's efforts to obstruct access to websites and programs that provide a link to the outside world. There is a demand for accurate information in Burma - and the internet is one of the few tools to provide that information to those who can use it. VAJDA