Chiang Mai (Mizzima) – The Union Solidarity and Development Association (USDA) plans to operate a CDMA 800 MHz phone rental business in Moulmein in collaboration with Burma's Telecommunication Department.
They are accepting applications for 1,000 phone connections in Moulmein, Mon State and another 500 lines in Kyaikhto and Thaton towns at the rate of Kyat 500,000 each.
Priority is being given to USDA members in accepting applications and Myanmar Telecom will invite applications for new phone connections.
The Telecommunication business is monopolized by the government in Burma and those who want to use its service must submit applications to the Ministry of Communication. The telephone lines are just rented to the users and the Ministry has the right to revoke their phone rentals at any time.
Regarding this mutually beneficial business between the USDA and Myanmar Telecom not much is known but in earlier new telephone connections granted in Rangoon, Mandalay and other big cities, Myanmar Telecom handed over its management right to USDA for its fund raising. But USDA handed over its lucrative business to junta's crony and business tycoon Tay Za owned 'Information Technology Central Services Co. Ltd.'.
But this new CDMA 800 MHz phones have some drawbacks like limited operational area and being non-usable on roam.
But its incentive to the users is free incoming calls, while the rates for outgoing calls are a flat Kyat 50 per minute for both local and domestic trunk calls. SMS rate is Kyat 25 per message. The new phone lines allow overseas calls.
The applicants of the new phone line must mention the purpose of applying and these applications must be submitted to Moulmein Telecom Department office and the USDA office. Lucky applicants will be informed by post later.
Though the number of new phone lines is being talked about by the local USDA and Telecom department, it still needs final approval from the Head Office at Naypyitaw, an officer from the Telecom Office in Moulmein told Mizzima.
"It will depend on the approval given by the Head Office. We must weigh the volume of communication traffic in our city for the convenience of the users. And we must consider the requirement of telecommunication equipments. The number of new phone lines must be based on the communication traffic volume for the benefits of the users. It will depend on the capacity of our equipments," he said.
But some users are illegally using the Thai communication system in Moulmein and neigbouring areas, the Telecom officer said.
The USDA is exploiting the privilege they enjoy for this lucrative business and they are charging extra from the phone users, local residents said.
"The government official rate for phone rent is just Kyat 500,000 but they are reselling them at Kyat 700,000 each for fund raising," a local resident from Moulmein said.
