Globacom eyes India as MTC buys Vmobile



By Shina Badaru

Lagos, Nigeria. April 16, 2006

Second national operator (SNO) Globacom Limited is to acquire stake in an Indian operator as part of its plans to explore beyond the Nigerian telecoms market.

This is just as Vmobile put paid to industry speculations when it confirmed Sunday the sale of 65 per cent of the mobile cellular business to MTC Group of Kuwait.

The MTC acquisition confirms Technology Times report of October 11, 2005 titled ‘Kuwait’s MTC bids to buy Vmobile, NITEL’ that detailed the Middle East mobile operator’s intense efforts to enter the fast-growth Nigerian market in an effort to become Africa’s leading telecoms player.

It is a season of mega deals in the Nigerian telecoms sector with as both developments, happening around the same period, are significant for the growth of the market. MTC, through its wholly-owned subsidiary, Celtel, has finally realised its persistent ambition at gaining a foothold in the fast-growth Nigerian market.

On the other hand, Globacom, a relatively new entrant into the Nigerian telecoms business, built from ground up by Nigerian businessman, Mike Adenuga Jr., has commenced the initial phase of its international exploration through the foray into the Indian telecoms market.

Based on its plans, the SNO, which has no plans to set up a fresh telecoms business in India, wants to acquire an existing industry player before moving into the nation’s oil and banking sectors at a later date.

Chief Operating Officer (COO), Globacom Limited, Mohammed Jameel was quoted by The Economic Times of India as saying that the SNO plans to invest some $700 million in India. It also hopes to explore new markets in Morocco, Ivory Coast, Cameroon, Ghana and Benin Republic. Globacom would employ some 150 Indians out of the 400 people planned to drive its expansion into global markets.

The Indian newspaper estimates the value of Adenuga’s MA Group with interests in oil, banking and telecoms to be in the region of $5 billion.

“We are a cash-rich company keen on foraying into India, as the telecom market here is booming. We are not averse to investing in call centres, banking and petroleum sectors in India. We have decided to make India the Asian hub for our manpower needs for telecom,” he says adding that, “we are looking at a strategic partnership with one of the existing telecom operators. Globacom is going to invest $500-700m in India.”

He said the company is already in talks with some Indian operators for picking up equity stake, as well as for technology tie-ups. “The talks are in preliminary stages, but the response has been good,” he said, refusing to divulge names of companies.

But the firm is not keen to put money in smaller operators as it will be difficult to get returns in future. “We are not eager to pick up equity in any small firm,” he adds.

A team from Globacom is in India to identify manpower sourcing channels for fulfilling its requirements. “India is a reservoir of skilled and technically competent manpower in the telecom and retail sector. Manpower sourcing has been identified as a critical area by MA Group,” he added.

"We are in talks with some big players in the field of telecommunication in India for entering into a strategic relationship. Talks are at initial stages. However, an announcement is expected in the next two to three months," according to Jameel.

"The Indian telecom sector is slightly crowded. But, it has huge potential and requires significant investment to grow further," he adds.

"Our subscriber base is expected to cross the 10 million- mark by the middle of the current year and total turnover to cross $1.25 billion," Jameel said.

Meanwhile, Vmobile says it has finalised a conditional agreement with Celtel International to acquire 65 per cent controlling stake of the mobile cellular company for $1.5 billion.


PR Manager, Vmobile, Emeka Oparah, says in a statement that “the remaining shareholders have an option to sell their shares to Celtel at a similar valuation at a later date.”

With this, MTC has been able to establish enter the Nigerian market after a botched effort to acquire control of the Nigerian Telecommunications Limited (NITEL), through Holland-based Celtel, the sub-Saharan operator it bought in a $3.4 billion cash transaction finalised May last year.

Under the terms of the acquisition, Celtel now operates as a separate legal entity within the MTC Group of Companies. It also left the existing Celtel management in place to continue to execute their growth plans for the business while leaving the Chairman, Mohamed Ibrahim to stay on as director of the post-acquisition Celtel.

The Nigerian deal is part of the implementation of the international phase MTC’s “3x3x3" vision, which is an ambitious expansion strategy that will see the operator become a leading mobile and lifestyle services provider on the global stage by the end of the year 2011.

MTC initiated the strategy in 2002 to become a global player in three stages: regional, international and global, with each stage completed in three years. Under this programme, it aims to reach a subscriber base of 20 million through a combination of acquisitions, partnerships and green-field opportunities, according to MTC.

MTC had last year pulled out of the bid for NITEL to concentrate on the Vmobile deal over the huge debt burden of the company as well as the non-clarification on the valuable SAT-3 optical fibre asset of the public-owned company, among other issues.

With MTC’s entry, it is also a contest of old rivals as the bid for Celtel had pitted MTC against rival pan African operator, the MTN Group of South Africa. MTN had then filed a futile court action when it was beaten to the acquisition deal by the Kuwaiti operator.

MTC, the first mobile operator in the Middle East was founded in 1983 had a market capitalization exceeding $7 billion as at May 1, 2005. Its shareholder base is made of 75% public and 25% by the Kuwait government. It had reported in August last year that it now has 10.6 million subscribers across 18 countries including Kuwait, Jordan, Bahrain, Iraq and Lebanon.

It had unveiled its ‘3X3X3’ strategy hoped to make it a global player and achieve 20 million customers by 2011 on a global level and entered into a branding partner agreement with Vodafone.






I have found this article in the "Economic Times of India" which is a very serious newspaper in India



Globacom to invest in Indian telecom sector

PTI[ FRIDAY, APRIL 14, 2006 08:13:01 PM]

MUMBAI: Nigeria based Globacom, a subsidiary of the $5 billion M A Group, on Friday said it would invest upto $800 million to foray into the Indian telecom sector.
M A Group, having different business interests, is also open to enter into oil and banking sectors in India on a later date. It would appoint 400 workmen from India to carry out its global operations.
"We are in talks with some big players in the field of telecommunication in India for entering into a strategic relationship. Talks are at initial stages. However, an announcement is expected in the next two to three months," Chief Operating Officer of the company M A Jameel said here.
However, he made it clear that the company, to begin with, would look at acquiring equity stake in an existing telecom operator, instead of setting up a company on its own.
"The Indian telecom sector is slightly crowded. But, it has huge potential and requires significant investment to grow further," he added.
Since its inception in Nigeria two years back, Globacom has a base of over six million subscribers.
"Our subscriber base is expected to cross the 10 million- mark by the middle of the current year and total turnover to cross $1.25 billion," Jameel said.
Globacom has also plans to enter into Morocco, Ivory Coast, Cameroon Moreover, it would also foray into Ghana and Benin Republic.

SOURCE: http://economictimes.indiatimes.com, how/1490798.cms


FOR THOSE WHO WISH TO HAVE SOME MORE INFORMATION ON GLOBALCOM VISIT THEIR WEBSITE. http://www.gloworld.com/

and thats why GLO would hire Indians who went to Technical school, with no University degree, to come to Nigeria and do the jobs that are meant for Nigerian University Graduates, and then we'll talk about Nigerian Graduates walking the streets.

kimba:

and thats why GLO would hire Indians who went to Technical school, with no University degree, to come to Nigeria and do the jobs that are meant for Nigerian University Graduates, and then we'll talk about Nigerian Graduates walking the streets.

My brother i thnk its bcus its believed that indians are better in the area of in telecomms than a local nigerain man who went to unilag or uniben or any state or fed university that strike every once in a while.
That is and will always b a nigerian mentallity

Don't worry india has put up a challenge to Nigerians. Am still making researches. By GOD'S Grace glo will be down on their feet,n won't block any shit again,thereby making the indian salvages incompetent.

Another grey hair thread

Hmm

Holyrule:

Don't worry india has put up a challenge to Nigerians. Am still making researches. By GOD'S Grace glo will be down on their feet,n won't block any shit again,thereby making the indian salvages incompetent.

U re right made eazy,That conservzd the brain 4 hacks