Bharti launches new offshore arm to target South Asia
www.WirelessFederation.com/news: With the aim to spearhead its expansion into the south Asia region, Bharti Airtel has planned to launch a dedicated offshore arm on April 1. According to Sunil Bharti Mittal, chairman & managing director of Bharti, the company will develop comprehensive plans for its journey to cover emerging markets beyond India and South Asia.
This will leverage the depth and build a strong platform for fulfilling company’s global vision. The announcement was made after the acquiring of 70% stake in Bangladesh based telco, Warid Telecom by Airtel. Kuwait’s Zain Telecom and Sweden’s Millicom International Cellular is the new M&A target of the company.
Earlier, Bharti Airtel unsuccessfully bid to merge with South African giant MTN, twice.
Rwanda receives its third mobile network service
www.WirelessFederation.com/news: African telecom company Millicom officially launched its mobile operations in Rwanda after receiving the license in December 2008, thus becoming the third operator in the country. The service will cover almost 50% of the population while there are plans to extend the service in the next three years.
The 3G infrastructure of the firm has been deployed in Kigali, the capital city of Rwanda including other key urban centers.
According to Mikael Grahne, President and CEO of Millicom, Rwanda has emerged as a highly lucrative market with the population of 10 million, less than 20% mobile penetration and the country’s status as a highly developing economy.
With its strengths in distribution and innovation, the company feels that it can provide Rwanda’s mass market with mobile voice and value-added services.
MTN borrows 18Mn for network overhaul (Rwanda)
www.WirelessFederation.com/news: Africa’s fastest growing and leading mobile network, MTN, signed US$18 million deal with six local banks to overhaul its network in Rwanda. The deal came after Millicom International Cellular, a rival operator, started its mobile operation in mid November.
The deal is a part of the 100 million investments, MTN is set to make in the network this year. The debt will be taken in two different installments of $8 million and $10 million payable in three years and five years respectively. The loan will finance the network expansion of MTN above the current 90 percent coverage and will help to strengthen its position in the highly competitive market.
MTN has over 1.8 million subscribers in the country with a population of about 10 million people. It was awarded a national GSM license in Rwanda in 1998. Country’s third mobile license was won by Millicom International Cellular in November 2008, for $60 million.
Bharti Airtel considering bid for Millicom SL
Bharti Airtel CEO, Manoj Kohli told reporters in India that Airtel may bid for Millicom’s Sri Lankan operation. Bharti already operates in SL.
Wireless Federation had earlier reported that Millicom/Tigo Laos has been sold to Russia’s Vimpelcom.
Bharti is actively considering acquisitions in Africa and the world over after the talks with MTN collapsed.
Bharti group CEO Sunil Mittal has said that the company won’t engage in dialogue with MTN for a third time, after inconclusive talks twice.
Nasdaq-listed Millicom provides prepaid cellular telephony services to over 30 million customers in 16 emerging markets in Latin America, Africa and Asia.
Asked if Bharti Airtel was also interested in Kuwait’s Zain Telecom, Kohli said they will continue to explore international acquisitions. (Airtel-Zain, See Here)
Vimpelcom building a solid South East Asian Cluster – Boris Nemsic, CEO Vimpelcom.
VimpelCom will pay about $66 million for Millicom’s 78 percent stake in Millicom Lao Co. Ltd. The remaining 22% of Millicom Lao Co., Ltd. is owned by the Government of the Lao PDR.
VimpelCom’s CEO Boris Nemsic describes the deal as, “the next logical step in our international expansion strategy” and one that “fits perfectly into our strategy of building a solid Southeast Asian cluster.”
VimpelCom already has mobile operations in Vietnam and Cambodia, having launched services in both markets in July 2008. It holds a 40 percent stake in a JV established with state-owned GTEL in Vietnam. In Cambodia, it owns 90 percent of Sotelco.
Laos has a population of 6.5 million people and low mobile penetration estimated at around 23%, thus making it attractive for Vimpelcom and an obvious choice for acquisition.
Millicom to exit Asia totally by Q1 of 2010. Sells Laos share to Vimpelcom for $66 Million.
Millicom has agreed to sell its GSM business in Laos to Russia’s VimpelCom and has bidders lining up for its Sri Lankan operations, the sale of which will end Millicom’s activities in Asia. VimpelCom will pay about $66 million for Millicom’s 78 percent stake in Millicom Lao Co. Ltd.
Last month Millicom agreed to sell its 58.4 percent share in CamGSM, Royal Telecam International, and Cambodia Broadcasting to its Cambodian partner, The Royal Group, for $346 million in cash.
That leaves just Sri Lanka from Milicom’s Asian portfolio, and its operations there are also up for grabs. Millicom is the sole owner of Celltel Lanka (Pvt) Ltd. It was the first mobile operator in Sri Lanka. Mobitel and Tigo both claim to be the second largest. Dialog GSM is the country’s largest operator.
Indian State owned, Bharat Sanchar Nigam Ltd. (BSNL), UAE’s Etisalat, Malaysia’s Axiata Group and India’s Bharti are also said to be bidding to acquire Tigo Lanka.
Axiata’s Dialog and Airtel already operate in Sri Lanka. Airtel winning the bid might sit better with the regulator since Axiata winning it would give Dialog an overwhelming position in the market.
Millicom expects to exit Asia Q1 of 2010. At the end of the first quarter, Millicom had a total of just over 4.5 million subscribers in Asia. Millicom’s Asian Revenues for 2008 are at $262 million with an EBDITA of $101.5 million. This is a year-on-year increases of 24.4 percent and 27.5 percent respectively.VimpelCom will pay approx $66 million for Millicom’s 78 percent stake in Millicom Lao Co. Ltd.
Tigo Rwanda to be launched by End 2009
Millicom will be launching TIGO Rwanda by the end of this year. Millicom paid USD 60 Million for a 15 year license in November 2008.
Tigo Rwanda’s Chief Executive Officer (CEO), Alex Kamara, told a newspaper that Millicom is still committed to what was submitted during the negotiation for the licence last year. In a statement Kamara said that they will launch before the end of the year and their strategies are focused on the service delivery.
Millicom holds 87.5% of the joint venture company in partnership with Marathon Corporation, an established Rwandan conglomerate.
MTN Rwanda and Rwandatel are currently serving over 1.5 million Rwandan mobile subscribers currently.
