TOKYO (AFP) - Japanese mobile carrier KDDI says it is planning to link up with trading house Sumitomo in a deal to invest about US$2.0 billion in developing wireless networks in Myanmar.
The move will see the Japanese giants pair up for a joint venture with state-owned Myanma Posts & Telecommunications, a KDDI spokesman said on July 17.
The tie-up would invest 200 billion yen ($2.0 billion) over a decade to boost phone networks in Myanmar, where only about 10 percent of the 65-million strong population has access to mobile phones ? one of the lowest rates in the world.
The joint venture, KDDI Summit Global Myanmar (KSGM), would upgrade the domestic carrier's existing network and expand mobile coverage, the spokesman said.
"KSGM is expected to make an investment of about 200 billion yen over the next 10 years, and most of it will be used for developing the network," he added.
Myanmar was left impoverished after decades of economic mismanagement under the former junta and Western sanctions imposed in protest at the military government's human rights record.
Foreign investors are seeking opportunities in the resource-rich country following a series of dramatic political and economic reforms since military rule ended in 2011.
Myanmar needs investment to drive a much-anticipated economic revival.
Unlike its Western allies, Japan maintained trade ties and dialogue with Myanmar when it was under military rule, arguing that a hard line could push it closer to China.
Nissan is among the Japanese firms investing in Myanmar with plans to make vehicles, while All Nippon Airways said last year it would acquire a 49 percent stake in a Myanmar airline.
The airline last year resumed direct flights from Tokyo to Yangon after a 12-year hiatus in response to demand from business travellers.
Japan has pledged "all possible assistance" to kick-start the economy, with Prime Minister Shinzo Abe promoting the expertise of Japanese firms ? particularly for infrastructure projects ? during a visit last year.
Japan is a partner in the Thilawa special economic zone project, a 6,000 acre (2,400 hectare) site on the outskirts of Yangon that includes a port and industrial estate and is expected to be operating next year.
Tokyo has also pledged to extend new loans to Myanmar to help upgrade power systems and boost rural development.
