MTN still faces formidable competition in the
final build-up to the announcement of winning bidders for two available
operating licences in Myanmar despite two of the world’s largest
telecommunications firms pulling out of the race at the weekend.
Analysts have said that MTN’s lack of direct
experience in the region, the close association of competing bidders
Millicom, Axata and Ooredoo with Myanmar, and even the rand’s reduced
rate of exchange against the dollar are additional stumbling blocks.
“While MTN has the experience, money and local
partner to succeed in Myanmar, IDC believes that the lack of direct
experience in the region could have a negative impact on its bid for a
telecommunications licence in that country,” Spiwe Chireka, a programme
manager for telecoms in Africa at the International Data Corporation
(IDC), said yesterday.
But she added that despite MTN partnering with a
local partner, Amara Communications, and Singapore’s M1 Group, other
bidders – such as Digicel, Axata and Millicom – enjoyed closer ties with
Myanmar, which could play against MTN.
Digicel Cellular, for example, which is not
well known outside of its native Caribbean and some Pacific Islands, had
partnered with Quantum Strategic Partners, which is linked to an
investment group led by Hungarian-American business magnate George Soros
and Yoma Strategic Holdings.
In the past, Quantum has donated millions of dollars to fund various socioeconomic projects in Myanmar.
Axata, Ooredoo (formerly Q-Tel), Millicom and
Viettel Group have extensive operations in south-east Asia and could
leverage existing cultural and business ties with Myanmar, a nation of
60 million with cellphone penetration of less than 10 percent.
Other significant bidders include Singtel and
KDDI. France Telecom partnering with Japan’s Marubeni has previously
secured licences in Malaysia and Indonesia for the French company.
India’s Airtel, once an MTN suitor, is also
vying for a piece of the Myanmar pie. But Chireka said: “It should be
noted, though, that Airtel has not performed well in Africa, and is yet
to turn a profit from the continent since acquiring its African
operations in 2010.
“It could raise concerns about the company’s
ability to finance a large and aggressive roll-out such as the one
required in Myanmar.”
Asked where MTN would shift its focus to should
its bid be unsuccessful, Sifiso Dabengwa, the group chief executive,
said: “MTN continues to consider bolt-on stand-alone opportunities that
fit within our strategy, and have sufficient scale and size, across
Africa, the Middle East and other emerging markets. The various
alternatives would need to be considered at the appropriate times.”
Richard Hurst, a senior analyst for enterprise
at research firm Ovum, said: “The exact size and depth of this
investment would depend on a number of factors, such as the coverage
area initially selected and the overall roll-out strategy of the
operator.”
MTN’s share price dropped 0.71 percent to close at R175.75 on the JSE yesterday.
source: IOL
No comments:
Post a Comment