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Viewing cable 07RANGOON718, INTERNET SLOWLY DEVELOPING IN BURMA

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Reference ID Created Released Classification Origin
07RANGOON718 2007-08-08 11:05 2011-08-25 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Rangoon
VZCZCXRO4522
RR RUEHBZ RUEHCHI RUEHDT RUEHHM RUEHNH
DE RUEHGO #0718/01 2201105
ZNR UUUUU ZZH
R 081105Z AUG 07
FM AMEMBASSY RANGOON
TO RUEHC/SECSTATE WASHDC 6312
RUCNASE/ASEAN MEMBER COLLECTIVE
RUEHGG/UN SECURITY COUNCIL COLLECTIVE
RUEHBJ/AMEMBASSY BEIJING 1473
RUEHBY/AMEMBASSY CANBERRA 0403
RUEHKA/AMEMBASSY DHAKA 4573
RUEHLO/AMEMBASSY LONDON 1970
RUEHNE/AMEMBASSY NEW DELHI 3943
RUEHUL/AMEMBASSY SEOUL 7497
RUEHTC/AMEMBASSY THE HAGUE 0634
RUEHKO/AMEMBASSY TOKYO 5051
RUEHCN/AMCONSUL CHENGDU 1159
RUDKIA/AMCONSUL CHIANG MAI 1027
RUEHCI/AMCONSUL KOLKATA 0022
RUEATRS/DEPT OF TREASURY WASHDC
RHHMUNA/CDR USPACOM HONOLULU HI
RUEHGV/USMISSION GENEVA 3203
RHEHNSC/NSC WASHDC
RUCNDT/USMISSION USUN NEW YORK 0849
RUEKJCS/SECDEF WASHDC
RUEHBS/USEU BRUSSELS
RUEKJCS/JOINT STAFF WASHDC
UNCLAS SECTION 01 OF 03 RANGOON 000718 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR EAP/MLS; EB/CIP/BA 
PACOM FOR FPA 
TREASURY FOR OSIA:SCHUN 
 
E.O. 12958:N/A 
TAGS: ECON ECPS PGOV BM
SUBJECT: INTERNET SLOWLY DEVELOPING IN BURMA 
 
 
RANGOON 00000718  001.2 OF 003 
 
 
Sensitive but Unclassified, please handle accordingly.  Not for 
Internet Distribution. 
 
1.  (SBU) Summary.  Despite the GOB's continued efforts to limit 
access to the outside world via the internet, the Burmese are 
creatively finding ways to circumvent regime bans.  Users, 
particularly the younger generation, employ proxy servers or web 
tunnel programs to access block programs, such as free email 
providers, chat rooms, and VOIP.  Internet access is widely 
available in large cities, and entrepreneurial Burmese are expanding 
access to rural areas with new cyber cafes.  Despite prohibitive 
internet costs, internet use in the past seven years has increased 
1500 percent, from 2,000 users in 2000 to more than 300,000 today. 
Although the GOB plans to increase internet penetration throughout 
the country from 0.3 to 0.5 percent by the end of 2007 by granting 
licenses for new cyber cafes, their efforts to obstruct access to 
sensitive websites will likely continue.  End Summary. 
 
Internet Connectivity on the Rise 
--------------------------------- 
 
2.  (SBU)  Despite efforts by the GOB to limit access to 
international news and other websites, internet services are readily 
available in Burma.  Burma has two national internet service 
providers (ISPs), one run by the Ministry of Post and 
Telecommunications (MPT) and the other controlled by semi-private 
Myanmar Teleport.  Myanmar Teleport was previously known as Bagan 
Cybertech, which was owned by former Prime Minister Khin Nyunt's 
son.  After Khin Nyunt was ousted in 2004, the company was sold and 
renamed.  Burmese internet users have five ways to connect to the 
internet:  dial-up, three types of broadband connections (ADSL, 
IPSTAR and wireless local loop) and VSAT (Very Small Aperture 
Terminal) satellite. 
 
3.  (SBU)  The MPT records list approximately 40,000 internet 
subscribers throughout the country, although officials estimate that 
each subscription services an average of eight people.  According to 
unpublished official figures, internet penetration is estimated at 
0.3 percent.  MPT reports that internet use has increased 1500 
percent since 2000, from 2,000 to more than 300,000 users.  Even so, 
Burma still has one of the world's lowest per capita rates of 
internet use. 
 
4.  (SBU)  Most subscribers opt for dial-up services, although 
connections speeds are extremely unreliable and slow (less than 24 
kilobytes per second) due to poor quality phone lines. 
Approximately 2,000 consumers, primarily businesses in Rangoon and 
Mandalay, use ADSL, which has a speed of anywhere between 64kps to 
512kps.  Outside of the larger cities, rural communities are forced 
to use the more than 1,000 IPSTAR terminals (which use bandwidth 
acquired from Shin Satellite, owned by former Thai Prime Minister 
Taksin) to access the internet.  Wireless local loop, which in 2003 
had approximately 2,000 subscribers, is now virtually obsolete in 
Burma, and the cost of VSAT is too prohibitive for most Burmese. 
 
Avoid High Costs, Use Cyber Cafes 
--------------------------------- 
 
5.  (SBU)  Due to the high cost of internet subscriptions (see chart 
below) and the lack of private computer ownership, the majority of 
Burmese internet users access the internet from cyber cafes. 
According to Wanna More, Executive Director of Myanma Computer 
Company, there are more than 150 cyber cafes throughout the country, 
with new ones opening weekly.  Most cyber cafes have between 10-30 
computers available, and charge an average of 1500 kyat (USD 1.15) 
per hour.  In addition to cyber cafes, internet is available at many 
 
RANGOON 00000718  002.2 OF 003 
 
 
hotels, computer training centers, some universities.  The American 
Center and the British Council are also popular free surfing sites. 
 
 
--------------------------------------------- ---------- 
         Cost of Internet Services in 2007, Burma 
                     In U.S. Dollars* 
--------------------------------------------- ---------- 
Service                Start Up Cost       Monthly Cost 
--------------------------------------------- ---------- 
Dial Up               40.00-50.00               25.00** 
 
Broadband 
   ADSL                 1000.00           b/t 30-125*** 
   IPSTAR               2000.00       1.00 per kilobyte 
   Wireless Local Loop  1500.00                     N/A 
VSAT                    2000.00+                    N/A 
--------------------------------------------- ---------- 
*calculated at 1290 kyat/$1 
**cost of 60 hours per month.  10 hours/month costs UD6.50 
***ADSL: USD 30 for 128 MB; USD 70 for 256 MB; USD 125 for 512 MB 
Source:  Ministry of Post and Telecommunications 
 
6.  (SBU)  Myanmar InfoTech, a private consortium of 50 local 
companies supported by the MTC, issues cyber cafe licenses on behalf 
of the GOB.  Although these licenses are relatively easy to obtain, 
they require that license holders register users before allowing 
them internet access and ask cafe owners to monitor screen activity. 
 Khun Oo informed us that the GOB is desperate to improve internet 
penetration throughout the country, and hopes that by granting new 
licenses, it can increase the overall penetration rate to 0.5 
percent by the end of the year. 
 
7.  (SBU)  Despite the expense of a cyber cafe for ordinary Burmese, 
demand, particularly among the younger generation,  has increased. 
These users are primarily interested in the internet for email and 
chatting purposes.  More and more young people, Khun Oo noted, are 
trying to use voice over internet protocol (VOIP) to contact family 
and friends outside of Burma.  Internet users at some universities 
and other public access centers employ computers for academic 
research. 
 
Circumventing Internet Bans 
--------------------------- 
 
8.  (SBU) The Burmese government has banned access to free email 
sites, such as Yahoo! and Hotmail and some VOIP services, in order 
to control access to the outside world.  In July, the GOB banned the 
use of another VOIP program, Mediaring Talk.  To date, the GOB has 
yet to ban popular VOIP program Gtalk, presumably because it is not 
aware of the program's existence.  VOIP services allow people to 
make inexpensive international phone calls over the internet, 
thereby preventing the GOB to collect much needed revenue from 
overpriced international phone calls.  Additionally, the GOB feels 
threatened by VOIP programs, as it is unable to monitor phone 
conversations.  Wanna More commented that the GOB, as it learns more 
about other VOIP programs, will likely restrict access to these 
services in the future. 
 
9.  (SBU)  The government uses programs such as Dan's Guardian and 
Fortinet's Fortiguard to block specific internet sites.  Wanna More 
told us that the GOB utilizes monitoring software that checks emails 
for key words/phrases and large attachments.  Many of our NGO and 
business contacts confirmed that some email is delivered instantly, 
but most messages are delayed up to 24 hours, presumably because the 
government is scrutinizing the messages. 
 
RANGOON 00000718  003.2 OF 003 
 
 
 
10.  (SBU) In order to circumvent these prohibitions, the majority 
of Burmese cyber cafes utilize proxy servers or web tunnel programs 
to access restricted sites.  Burmese consumers complain that while 
these programs work, they significantly reduce the speed of the 
internet.  Wanna More explained that MPT and Myanmar Teleport 
continually add foreign proxy and tunnel servers to the domain 
blacklist, but that they are unable to block all programs.  Both MPT 
and Myanmar Teleport want to make a profit from internet usage, he 
rationalized, and to uphold all bans would significantly cut into 
profits.  Instead, he opined, these organizations "restrict internet 
access to the minimum extent possible." 
 
Comment 
------- 
 
11.  (SBU) Although the Burmese government views the internet as a 
pulpit for the Burmese dissidents abroad, there appears to be a 
healthy, albeit small, internet market in Burma.  The GOB finds 
itself in a precarious position - it wants to show the world that it 
is encouraging internet growth, but at the same time, it does not 
want to lose control over the internet.  The GOB may be fighting a 
losing battle, as even government entities are condoning the 
circumvention of internet bans in order to make a profit.  The 
number of computer savvy Burmese increases daily, and they will 
continue to try to evade the government's efforts to obstruct access 
to websites and programs that provide a link to the outside world. 
There is a demand for the truth in Burma - and the internet may be 
one of the few tools to provide that information to those who will 
use it. 
 
STOLTZ