Japanese conglomerates Sumitomo and NEC signed an agreement with Myanmar's government to build a high-speed communications infrastructure.

The communications infrastructure consists of an optical transmission network capable of transmission speeds of 30Gbps between the cities of Yangon, Mandalay and Naypyidaw, as well as LTE communications, fixed-line telephones and optical transmission networks capable of 10Gbps Internet transmissions within each city. The Japanese companies also brought on NTT Communications in a supporting role.

This infrastructure will support the simultaneous use of services for approximately 40,000 LTE communication subscribers, roughly 1.5 million fixed-line telephone subscribers and about one million Internet communication subscribers. LTE communications systems will also be supported by 50 LTE base-stations deployed within the three cities. Systems are expected to be completed by November 2013, followed by technical training and operation assistance.

The entire system is expected to be able to support the upcoming Southeast Asian Games (SEA Games), planned for the end of this year in Myanmar, and the country's assumption of the role of ASEAN chairman in 2014.

The companies have also expressed an interest to promote the expansion of communications infrastructure throughout the urban and rural regions of Myanmar.

The agreement came after the Japanese government issued a grant aid on late December 2012 to fund the Myanmar government's communications network improvement plan. The initiative includes the strengthening of connections between Myanmar's three leading cities and the reinforcement of communications networks with improved procurement of equipment, installation and operation of systems supporting Internet connections.