Failure of Bharti Deal Leaves South African Operator Up Against Strong
Multinational Competition
BOSTON--(Business Wire)--
MTN`s second attempt at a merger with India`s Bharti Airtel collapsed at the end
of September, leaving the world`s 13th largest mobile operator competing with
regional and global operators for share in the rapidly consolidating African and
Middle Eastern markets. Strategy Analytics predicts that MTN will ultimately
need to expand outside of the region, but its near-term strategy will focus on
building its African base, as described in its recent report, "MTN: Sticking to
Africa After Failed Bharti Deal?"
MTN faces strong competition in Africa from international giants like Vodafone,
active in key markets like South Africa, Ghana, Kenya, and Egypt, and Orange,
which has operations in more than a dozen African countries. In addition,
regional operators like Zain and Etisalat have significant presence on the
continent and have been aggressive in building their positions. Even China
Mobile is rumored to have an interest in Africa.
"The opportunities in Africa are not a big secret," notes Tom Elliott, Director
of the Strategy Analytics Emerging Markets Communications Strategies service.
"Global operators with the resources to invest for the long-term know that this
potential for growth and volume simply does not exist anywhere else."
MTN is currently largely concentrated in Sub-Saharan Africa, and thus expansion
into East or North Africa will bring it into head-to-head competition with some
very strong and well-funded competitors. "MTN has done well in some challenging,
low ARPU countries," says Phil Kendall, Director of the Strategy Analytics
Wireless Network Strategies service, "Although MTN may be able to bring its
skills to new markets, it won`t do so unopposed."
About Strategy Analytics
Strategy Analytics, Inc. provides timely and actionable market intelligence
focused on opportunities and disruptive forces in the areas of Automotive
Electronics and Entertainment, Broadband Connected Home, Mobile & Wireless
Intelligent Systems and Virtual Worlds. Headquartered in Boston, MA, with
offices in the UK, France, Germany, Japan, S. Korea and China, Strategy
Analytics works with clients through annual multi-client services, management
team workshops and custom consulting engagements. For more information, please
visit http://www.strategyanalytics.com/
Strategy Analytics, Inc.
US Contact:
Tom Elliott, +1-617-614-0703
telliott@strategyanalytics.com
or
European Contact:
Phil Kendall, +44(0) 1908 423 620
pkendall@strategyanalytics.com
Copyright Business Wire 2009
