a16z Podcast | Technology and the Opening of Myanmar

• Internews launched the Myanmar Innovation Greenhouse, a physical hub designed to unite independent media, civil society, and technology developers to build tools for social change.
• The initiative follows a first-ever hackathon in Myanmar that recruited 76 designers and developers to solve 8 specific challenges submitted by NGOs, such as reaching sex workers and informing farmers about pest outbreaks.
• A. Moe, co-founder of the Silicon Valley startup Baden and a former Burmese engineer, is participating in the effort to connect the local startup community with Silicon Valley resources.
• Ethan Zuckerman of MIT's Center for Civic Media is advising on the project, drawing parallels to the success of Nairobi's iHub, which spun out over 50 startups in East Africa.

Myanmar's Connectivity Revolution

• Myanmar's population of 51.4 million is undergoing a rapid digital transition after a 12-year engagement by Internews and the liberalization of the telecommunications market.
• Prior to recent reforms, the country was served by only one government-owned state telco; four well-funded telcos are now racing to provide access.
• SIM card costs have plummeted from $250 (at the time of host Michael Copeland's arrival) to $1.50, resulting in massive demand with lines forming similar to iPhone launches.
• Approximately 8 weeks prior to the recording, the market shifted from a monopoly to a competitive environment with two new international telcos launching and a third incoming.

Digital Behavior and Platform Usage

• Facebook currently serves as the primary gateway to the internet for many Burmese, functioning like a "closed garden" similar to late-1990s AOL, with approximately 2.2 million users.
• Viber holds a larger user base of 5 million, surpassing Facebook, due to lower barriers to entry; it requires only a SIM card for signup rather than an email address.
• The market has effectively "leapfrogged" the desktop era, with many users accessing the internet solely via smartphones, as Android phones have become cheaper than the "candy bar" phones used in earlier African connectivity waves.
• Independent media has exploded from a state-controlled monopoly to seven daily newspapers and dozens of weekly publications following regulatory changes two years prior to the conversation.
• Unlike previous eras where all press required government review (limiting frequency to weekly), the new environment allows for daily publication and more explicit criticism, though an adjustment period remains as users shift from formal state language to informal digital expression.

Challenges and Future Outlook

• Monetization remains a critical hurdle for independent media, which struggles to generate revenue within Facebook's walled garden or via traditional ad models in an ad-supported market that is still nascent.
• Mobile payments and money transfer regulations are identified as the next critical determinant for the viability of a flourishing local tech ecosystem.
• Distribution is a major bottleneck; while the Google Play Store is open to Burmese developers (opened shortly before Eric Schmidt's visit), the iTunes App Store remains inaccessible for developers using Burmese addresses, forcing workarounds via international listings.
• Government oversight has relaxed significantly but remains present; the state is not currently performing pre-press censorship but continues to monitor the digital space closely.
• A long-term goal for the Innovation Greenhouse is to transition from international funding and coaching to locally ownership and management by Myanmar nationals.

Funding and Global Collaboration

• The project received critical seed funding from the Omidyar Network and the Open Society Foundation.
• Internews has established a GoFundMe campaign (gofundme.com/mi-greenhouse) to solicit additional public support for the initiative.
• The strategy involves creating a global network of donors and experts to facilitate knowledge transfer and avoid "reinventing the wheel" for Myanmar's tech sector.
• A. Moe's company, Baden, has committed to donating profits to Burmese educational projects and aims to facilitate a digital bridge by connecting Bay Area Burmese professionals with local startups.
• Future hackathons planned by Moe aim to focus on education-themed challenges to further support the local innovation pipeline.