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In light of MTN’s failure to merge with India’s Bharti Airtel (News - Alert), Strategy Analytics has proposed a future strategy for the world’s 13th largest mobile operator.

 

n a report titled “MTN: Sticking to Africa After Failed Bharti Deal?” Strategy Analytics (News - Alert) predicts that in the long run it will become imperative for MTN to expand outside the African and Middle Eastern markets, where the operator is currently struggling to maintain its leadership. The near-term strategy for the company, according to Strategy Analytics, should be to build on its African base.

 

TMCnet recently reported that MTN has partnered with IMImobile (News - Alert), an India-based software and managed services provider, with an aim to expand its services across Africa and the Middle East.

 

MTN is facing stiff competition from leading operators including Vodafone and Orange, which have a strong presence in the African markets. Regional operators like Zain and Etisalat (News - Alert) have also consolidated their position. Even China Mobile is rumored to have an interest in the market.

 

“The opportunities in Africa are not a big secret,” said Tom Elliott, director of Strategy Analytics’ Emerging Markets Communications (News - Alert) 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,” said 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.”