Saturday, November 24, 2012

RCOM, MTN: END OF TALKS

Discontinuing talks with MTN will not prove to be a long term setback for RCOM

MTN on its part has made it clear that it would continue to expand in more emerging markets, and plans a subscriber base of 300 million by 2012 (they currently have 66 million subscribers). There are speculations that MTN may target Mexico’s America Avil or a company in the Latin America region.

On the other hand, RCOM would have had a definite advantage with MTN as it already has a optical fibre network of FLAG in that region. But RCOM’s existing expansion plans hold it in good stead. Harit Shah, telecom analyst, Angel Broking, opines, “It might put the global expansion plans of RCOM on the back foot for some time but I don’t think there would be any long term impact.” RCOM has always been an aggressive player with a keen appetite for all probable targets so we may soon hear about a new ‘love’ interest. Also, given that RCOM has already announced plans to roll out its own GSM network in India, it’s less likely that it would be looking for acquisitions in the Indian market. Instead, RCOM is expectedly scrutinising options in the other developing markets such as Middle East and Latin America to add value to its existing business. And, with the GSM foray coming up, Anil Ambani already has a lot up his sleeve at the moment.


Source : IIPM Editorial, 2012.

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