IDG News Service —
Battle lines have been drawn in the fight to acquire African telecom service providers as mobile operators MTN and Zain seek to expand across the continent.
Zain said it has raised more than US$4 billion for more acquisitions, while MTN has approved more than $3 billion for acquisitions and infrastructure development this year.
The two service providers claim they are extending their footprints through acquisitions to provide voice, data and Internet services before the African mobile market becomes saturated with European and Middle Eastern operators.
MTN is seeking more value-enhancing opportunities in existing and new territories in Africa, particularly in voice and data markets, MTN spokesperson Nozipho January-Bardill said in an interview.
MTN has already acquired Verizon Business South Africa, which provides Internet services solely to corporate clients in Botswana, Kenya, Namibia, South Africa and Zambia. The company announced this week that it has also acquired two Ivory Coast companies, landline operator Arobase Telecom and ISP (Internet service provider) Afnet.
"The acquisitions reflect the progress we are making towards consolidating our business," said MTN CEO Phuthuma Nhleko. "The new acquisitions will support our strategy to ensure that MTN is well positioned for a rapidly converging technology market."
Meanwhile, Zain's expansion strategy aims to make the company a top 10 global mobile operator by 2011, said Chris Gabriel, Zain's CEO for Africa.
The Kuwaiti company is finalizing acquisition deals in Africa so that it can provide coverage from Cape Town to Cairo through Zain's One Network service, which eliminates roaming charges wherever Zain operates, Gabriel explained.
With a presence in 16 African countries, Zain claims it has managed to achieve unprecedented leaps in the global mobile telecom sector over the past five years, while MTN is the largest mobile operator in sub-Saharan Africa.
