Bharti, MTN might lead to expansion by others in Africa

www.WirelessFederation.com/news: Expansion by leading telecom operators like Bharti Airtel and MTN are making the headlines. It was Bharti’s acquisition of Zain that forced MTN to enter talks to buy Egypt’s Orascom Telecom.
This has posed a new challenge to smaller companies while other multinationals are looking for avenues to join the league.

With Africa emerging as an exclusive and lucrative destination for business expansion, Millicom International Cellular, Portugal Telecom, France Telecom’s Orange and Vodafone’s Vodacom are also likely to eye African assets. So in the near future it can be expected that small, African operators having units or stakes scattered across the continent can be acquired by the big players. Meanwhile, the question remains that do they have the capacity and capability to and skills to survive for a long term.

While more opportunities for operators are available in Africa, penetration in Latin America, another emerging market, is much higher at around 80 percent. Companies like Millicom might target unlisted Econet Wireless International, which does business in nine countries in Africa, as well as Europe and Asia.

For those aiming to enter Africa’s biggest telecoms market might find another unlisted firm, Globacom, which is Nigeria’s second-largest mobile phone operator, as a good bet. South Africa’s Cell C can also be eyed by major players of the telecom industry worldwide.