Identifier
Created
Classification
Origin
10RANGOON6
2010-01-07 10:17:00
CONFIDENTIAL
Embassy Rangoon
Cable title:
BURMA: SURPRISE DOUBLING OF FEES ANGERS MOBILE
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C O N F I D E N T I A L RANGOON 000006
SIPDIS
DEPT FOR EAP/MLS, DRL, AND IO
PACOM FOR FPA
E.O. 12958: DECL: 01/07/2020
TAGS: PGOV PREL PHUM BM
SUBJECT: BURMA: SURPRISE DOUBLING OF FEES ANGERS MOBILE
PHONE USERS
Classified By: Political/Economic Officer Brian Andrews for Reasons 1.4
(b) & (d)
Phone Calls Double in Price Effective January 1
--------------------------------------------- --
C O N F I D E N T I A L RANGOON 000006
SIPDIS
DEPT FOR EAP/MLS, DRL, AND IO
PACOM FOR FPA
E.O. 12958: DECL: 01/07/2020
TAGS: PGOV PREL PHUM BM
SUBJECT: BURMA: SURPRISE DOUBLING OF FEES ANGERS MOBILE
PHONE USERS
Classified By: Political/Economic Officer Brian Andrews for Reasons 1.4
(b) & (d)
Phone Calls Double in Price Effective January 1
-------------- --
1. (SBU) According to the Accounts Department of Myanmar
Post and Telecommunications (MPT),mobile phone charges for
permanent SIM cards doubled from USD 0.025 per minute to USD
0.05 per minute effective January 1. The price increase
surprised the public and has angered mobile phone users. MPT
offered no justification for the price increase and it is
unknown how the government plans to use the expected increase
in revenue.
Ownership of Mobile Phones Limited...
--------------
2. (SBU) While exact figures are impossible to ascertain,
estimates suggest less than one percent of Burma's population
owns a mobile phone, although the rate is reportedly higher
in Rangoon and other cities. Permanent mobile phone SIM
cards cost an average of USD 1,500. Even at this significant
price, demand for permanent mobile phone SIM cards far
exceeds supply. Permits to purchase the SIM cards are
distributed to government officials, VIPs, and their
families. Others must purchase the SIM cards via a lottery
system operated by MPT. Mobile phone users are generally
high-ranking government officials and their families, the
wealthy, and business people.
But Increasing...
--------------
3. (SBU) It is also possible to rent mobile phones with
permanent cards for roughly USD 35 to USD 50 a month.
Telecommunications authorities reportedly plan to add 100,000
more mobile phone lines in Rangoon and 50,000 more in
Mandalay. The new phone lines will have limited coverage
areas but a substantially reduced cost of USD 500 each.
4. (SBU) The mobile phone per-minute price increase will
not impact the prices and call charges for prepaid,
short-term SIM cards. Central Marketing Co. Ltd, owned by
junta crony Tay Za, offers prepaid SIM cards valid for one
month for GSM phones at USD 20 and for three months for CDMA
phones at USD 50. As of the end of 2009, 760,000 of the
one-month prepaid SIM cards and 30,000 of the three month
prepaid SIM cards have been sold.
Comment
--------------
5. (C) In the past, sudden price increases on regulated
products such as fuel have occasionally sparked protests
against the government. In this instance, it is difficult to
predict the likely response. Mobile phone ownership is
limited; but the impact of the price increase will fall
hardest on relatively well-off people in urban areas, those
who perhaps have the gumption to lobby against the measure.
DINGER
SIPDIS
DEPT FOR EAP/MLS, DRL, AND IO
PACOM FOR FPA
E.O. 12958: DECL: 01/07/2020
TAGS: PGOV PREL PHUM BM
SUBJECT: BURMA: SURPRISE DOUBLING OF FEES ANGERS MOBILE
PHONE USERS
Classified By: Political/Economic Officer Brian Andrews for Reasons 1.4
(b) & (d)
Phone Calls Double in Price Effective January 1
-------------- --
1. (SBU) According to the Accounts Department of Myanmar
Post and Telecommunications (MPT),mobile phone charges for
permanent SIM cards doubled from USD 0.025 per minute to USD
0.05 per minute effective January 1. The price increase
surprised the public and has angered mobile phone users. MPT
offered no justification for the price increase and it is
unknown how the government plans to use the expected increase
in revenue.
Ownership of Mobile Phones Limited...
--------------
2. (SBU) While exact figures are impossible to ascertain,
estimates suggest less than one percent of Burma's population
owns a mobile phone, although the rate is reportedly higher
in Rangoon and other cities. Permanent mobile phone SIM
cards cost an average of USD 1,500. Even at this significant
price, demand for permanent mobile phone SIM cards far
exceeds supply. Permits to purchase the SIM cards are
distributed to government officials, VIPs, and their
families. Others must purchase the SIM cards via a lottery
system operated by MPT. Mobile phone users are generally
high-ranking government officials and their families, the
wealthy, and business people.
But Increasing...
--------------
3. (SBU) It is also possible to rent mobile phones with
permanent cards for roughly USD 35 to USD 50 a month.
Telecommunications authorities reportedly plan to add 100,000
more mobile phone lines in Rangoon and 50,000 more in
Mandalay. The new phone lines will have limited coverage
areas but a substantially reduced cost of USD 500 each.
4. (SBU) The mobile phone per-minute price increase will
not impact the prices and call charges for prepaid,
short-term SIM cards. Central Marketing Co. Ltd, owned by
junta crony Tay Za, offers prepaid SIM cards valid for one
month for GSM phones at USD 20 and for three months for CDMA
phones at USD 50. As of the end of 2009, 760,000 of the
one-month prepaid SIM cards and 30,000 of the three month
prepaid SIM cards have been sold.
Comment
--------------
5. (C) In the past, sudden price increases on regulated
products such as fuel have occasionally sparked protests
against the government. In this instance, it is difficult to
predict the likely response. Mobile phone ownership is
limited; but the impact of the price increase will fall
hardest on relatively well-off people in urban areas, those
who perhaps have the gumption to lobby against the measure.
DINGER