MTN, Bharti expansion to spawn African telecom deals: Report
30 Apr 2010
The expansion of telecom majors MTN Group and Bharti Airtel across Africa is likely to put the continent's smaller groups into play as other multinationals look to shore up their positions.
Analysts say the likes of Millicom International Cellular, Portugal Telecom, France Telecom's Orange and Vodafone's Vodacom will now be on the prowl with a view to bulking up their African assets.
Paul Booth, director at emerging market research firm Global Research Partners, said he wouldn't be surprised to see acquisitions of small, African operators by any of those firms, which have units or stakes scattered across the continent.
"There are a large number of small players. One questions whether in the long term they've got the capability or skills to survive," he said, adding that it was Bharti's acquisition of Zain that had forced MTN to enter talks to buy Egypt's Orascom Telecom.
Mobile market penetration in Africa is expected to cross 50 percent during 2010, according to Research and Markets, offering more opportunities for operators looking for expansion in fast-growing Africa. Penetration in Latin America, another emerging market, is much higher at around 80 percent, according to analysts.
Analysts say the likes of Millicom International Cellular, Portugal Telecom, France Telecom's Orange and Vodafone's Vodacom will now be on the prowl with a view to bulking up their African assets.
Paul Booth, director at emerging market research firm Global Research Partners, said he wouldn't be surprised to see acquisitions of small, African operators by any of those firms, which have units or stakes scattered across the continent.
"There are a large number of small players. One questions whether in the long term they've got the capability or skills to survive," he said, adding that it was Bharti's acquisition of Zain that had forced MTN to enter talks to buy Egypt's Orascom Telecom.
Mobile market penetration in Africa is expected to cross 50 percent during 2010, according to Research and Markets, offering more opportunities for operators looking for expansion in fast-growing Africa. Penetration in Latin America, another emerging market, is much higher at around 80 percent, according to analysts.