Airtel’s African Safari

When Bharti Airtel, India’s largest mobile phone operator and fifth largest in the world, made two failed attempts for two consecutive years, first in 2008 and then again in 2009, to acquire MTN, Africa’s top carrier, it made skeptics wonder why the heck Indian operator chased this deal in first place? Many felt that the company was simply becoming a laughing stuff when it rebid in 2009 and failed again to woo the African telco. But barely a year later Airtel has critics eat humble pie.

The company today is among the leading operator in two Asian markets viz., Sri Lanka and Bangladesh. And it is locked in a fierce battle with Vodafone and others for market supremacy in Kenya, one of the lucrative markets in Africa. Bharti Airtel which acquired Zain Group’s Kenyan operations last year fired its first salvo by indulging in a tariff war, which took market leader Safaricom by surprise; Safarocom enjoys a market share of 78% in Kenya while Bharti-Zain, the second largest player has just 10% market share. And if industry experts are to be believed if the interconnection fees are further lowered by the government, it could only intensify the battle between the two giants, which could see other smaller rivals getting sidelined. 

However, this fight between the two biggies may become fiercer in the days to come; but at the same time, it will bring good news for customers who can now look forward to cheaper calls and SMS in Kenya. Given Airtel’s deep pockets and technological prowess, it won’t be surprising to see the company flexing its muscles further to snatch away market share from the market leader.

(To be continued…..)

Look for more news from African safari in our next article.

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