Greater Mekong Subregion

TC5: Myanmar-Thailand # 2 Optical Fiber Cable Link

Sector/Location

Telecommunications/Yangon (Myanmar)-Chiang Rai (Thailand)

Geographical Scope

Subregional

Project Objectives and Scope

To provide a reliable, high-quality communications link between the two countries. As part of a network of links between the countries in the Greater Mekong Subregion (GMS), it would reduce the cost of telecommunications and improve overall network reliability.

This project would help to support both industrial and rural development by increasing economic efficiency as a consequence of improved communications between producers/suppliers and their markets. The project would involve building an overland optical fiber cable from Yangon, Myanmar, to Chiang Rai, Thailand, via Meiktila, Keng Tung, and Tachilek, Myanmar. Initially, it would be equipped to carry Myanmar-Thailand traffic, but sufficient fibers should be provided on this route to provide backup to the Myanmar-Thailand #1 Optic Fiber Cable Link (Project TC4) and direct circuits between Myanmar and Lao PDR, Cambodia, and Viet Nam. Ultimately, Yangon would be connected through the Myanmar-Thailand #1 Optic Fiber Cable Link into the international submarine optical fiber cable network in Bangkok and so this cable could be used to give extra security to those links. The cable link would be designed for 2.5 Gbit/s working and redundancy would be provided on a 1+1 basis. Optical fiber cables provide high-quality, band-width communication links.

Geostationary satellites have limited transponders available, require long lead times for increased capacity, are susceptible to adverse weather conditions, and introduce noticeable transmission delays. When satellite links are connected in series, communication quality quickly degrades.

The existing satellite systems could be used as backup to this route in the short term. In the longer term, this link would form one of a diverse set of optical fiber routes linking Yangon to the neighboring countries and the rest of the world. Currently, all international telecommunications out of Myanmar are via satellite links. If this link is provided to Bangkok, it would provide an optical fiber link not only to the other members of the GMS but also to the international submarine optical fiber cable network.

Expected Impact and Benefits

This link would improve the quality and reliability of communications and allow for the provision of wide-band services. If the prices are reduced in line with costs, then communications would be available to low-income groups, which would improve their quality of life by stimulating economic and social activity and providing greater access to services. Improved communications would also reduce the need to travel and so reduce the pressure on transport infrastructure. Good, effective communications are now essential to the efficient operation of developed economies to increase the efficiencies possible in other sectors of the economy. An additional benefit flowing from the project would be the potential to improve communications in the communities along the route.

Estimated Project Cost

The estimated route length is 1,380 km-1,320 km in Myanmar and 60 km in Thailand. Based upon a six-fiber cable designed for 2.5 Gbit/s transmission systems and total budget costs of US$15,000 per km for a buried optical fiber cable in easy terrain, US$18,000 per km in normal terrain, and US$45,000 in hard terrain, the total budget estimate is US$30.3 million-US$29.2 million for the 1,320 km in Myanmar (based on 200 km of hard terrain and 1,120 km of normal terrain) and US$1.1 million for the 60 km of normal terrain in Thailand. The terrain to be traversed has some natural features that need to be considered in this project. There are rivers to be crossed and mountainous terrain. The design of this cable would also need to take account of the lack of a reliable mains power supply to power the repeaters. This route also relies on there being sufficient capacity in the Thailand domestic network between Bangkok and Chiang Rai.

Possible Sources of Financing

It is likely that this project could be undertaken as a commercial venture using concessional loans from the vendors. If, on further analysis, the returns are insufficient to attract commercial interest, then multilateral grants or loans may be required from such bodies as the Asian Development Bank (ADB) or the World Bank.

Implementation Arrangements

It is anticipated that the project would be undertaken on behalf of the Myanmar Post and Telecommunications and the Telephone Organization of Thailand (TOT) or the Communications Authority of Thailand (CAT) and would be jointly owned by Myanmar and Thailand. Project Management Offices would be established in each country with implementation undertaken by contractors supervised by consultants. A broad route specification including major towns on the route would be agreed between Myanmar and Thailand. This route specification would then be used as the basis of an environmental impact assessment to help determine the final detailed route specification. The transmission capacity and specifications would be determined taking into account the demands that could be placed on this route, including: (i) Myanmar to Thailand traffic; (ii) Myanmar to Cambodia traffic; (iii) Myanmar to Lao PDR traffic; (iv) Myanmar to Viet Nam traffic; and (v) international traffic from and to Myanmar through the international submarine optical fiber cable network at Bangkok.

Tenders would be called for the construction of the cable and the transmission systems. The successful tenderer would undertake a detailed route survey and, using the results of the environmental impact assessment, prepare detailed designs. These detailed designs would be approved by Myanmar and Thailand before construction commenced. The route would be tested by the consultants and acceptance tested by the Myanmar and Thailand authorities against the project specification.

Status

Prefeasibility assessment for the project has been conducted as part of the Telecommunications Sector Study. The project forms part of the Improved Connectivity Project endorsed by the Sixth Ministerial Meeting held in Kunming in August 1996. The Meeting requested ADB to take the lead role in seeking grant financing for project preparation and studies.

Critical Success Factors

Factors required for the successful completion of the project would include cooperation between Myanmar and Thailand in the timing of construction and establishment of a capable Project Management Office/Unit in each of the countries. There are rivers requiring river crossings and some mountainous terrain. These factors could increase the costs of construction.