Bharti Airtel management confirmed that it is in exclusive talks with Zain for buying the African assets of Zain (15 countries excluding Sudan & Morocco) for US$10.7b. Bharti and Zain are likely to be in exclusive talks till March 25, 2010. Bharti’s Zain acquisition is likely to lead to weakness in Bharti’s share price in the short term.
UBS valuation estimate for 80% of Zain’s African assets is around US$5b. However, given Africa is characterized by low minutes of usage currently; Bharti is likely to transport its low cost model to Africa which has the potential to improve usage significantly. There may also be synergies in terms of network equipment procurement, transfer of best practices from Indian mobile market.
Zain’s African assets had a subscriber base of 41.9m (Sep09), revenue of $2.7b, and EBITDA of $900m during 9MCY09. In Africa, Zain operates in the following: Zambia, Niger, Malawi, Burkina Faso, Tanzania, Chad, Congo Brazzaville, Gabon, Uganda, Sierra Leone, DRC, Kenya, Ghana, Nigeria and Madagascar.
3 thoughts on “Bharti-Zain deal – Weak Signals for Airtel”
Sub: Airtel’s Massive Fraud – Dumping Goods on Gullible Customers with out their consent
I have an Airtel Broadband connection 42668209. Was shocked to find (after 3 months) that they have charged for PC Secure(An useless n unknown Antivirus software) and Online Desktop storage without any written or verbal confirmation whatsoever from my end.
This is sheer GREED and they don’t have a clue of what’s happening as they have stripped themselves fully (Incl their vests n brief to their outsourcing operators!) Absolutely no coordination between them.
When contacted, after so many different versions from diff people, they have waived the charges. The key Qs to the TRAI, Govt and the general public are as follows:
1.TRAI clearly states that a written confirmation has to be obtained from the customer regarding change of plan and same to be communicated to the customer vide email/sms. Neither of them happened in my case. CLEARLY VIOLATION OF THE LAWS OF LAND! Look how they care for the law! They simply break it!
2. I opened my mouth and they gave the waiver for DUMPING USELESS PRODUCTS WHICH I NEVER WANTED IN THE FIRST PLACE. How many millions of subscribers have been conveniently duped like this? ,esp. good natured rural folks. Can TRAI, after an audit, arrive at a figure of this humongous fraud???. What about other operators??
3.TRAI is supposed to make an audit of the billing system periodically. Are they hand-in-glove?? Otherwise how on earth can Airtel go ahead with scant regard of TRAI’s laws?
Last but not the least. I have never had ANY billing issues with BSNL last two decades. Their response to service may be a lil’ slow(Thanks to the Central Govt who are bent on killing them!) but they would ever and never do such a blatant violation.
NOW, WHO WILL BELL THE CAT?? I’m making all efforts with my disposal to see to it that this issue is raised in Parliament/other relevant forums like this, raising public awareness. It’s not the Qs. of getting waiver for an individual for a couple of hundred rupees, but to expose the crores of rupees swindled from customers all over India since 1995!.
And without serving local customers, finding their feet-on-the-ground, obeying the rule of the land, they are flying for expansion in Africa and other countries! All Africans may not behave like we Indians, Mr.Mittal. I do care for your LIFE as you are no doubt a Telecom Czar.
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