Norwegian multinational Telenor is cautious about the impact of a new commercial tax planned by Myanmar on the country's millions of mobile users, its chief executive said Friday.
Myanmar, one of the world's hottest frontier markets, is launching a 5 percent tax for mobile usage effective Friday, a move that comes amid fierce competition in the growing telecommunication sector.
Telenor claims to possess the biggest 3-G network in Myanmar.
"We definitely told them [the government] to be careful about the tax," said CEO Sigve Brekke.
The Norwegian company splashed big money into Myanmar when it first launched in 2014. Covering 13 of 14 regions, Telenor is now is expanding into rural and ethnic areas in the hopes of eventually providing mobile coverage to 90 percent of the 53 million-strong population within five years from inception.
Telenor is one of numerous foreign entrants to Myanmar as the nation opens up its economy following years of isolation under military rule. The country made major strides in 2015, with foreign direct investment (FDI) hitting a record $8 billion and the launch of its first stock exchange.