CC image courtesy of warrenski on Flickr
Mobile operator MTN is considering acquisitions of Millicom International Cellular and Reliance Communications to expand its reach beyond Africa, according to a report.
Bloomberg reports MTN’s plans have been hindered before with its US$23 billion merger with Bharti Airtel being obstructed by government opposition five years ago, while talks with Reliance broke down last year due to disagreements over price.
Individuals close to the situation said the company needs to find a big enough transaction to continue its growth without compromising South African control in order for the deal to be successful and gain the support of the country’s Public Investment Corporation (PIC).
The company currently operates in 22 countries and services over 203 million subscribers.
MTN reported a decline in its South African subscribers in its first quarter results, alongside growth in other markets and rising data revenues across the board.
The company attributed the decline in its South African customer base to the disconnection of unused SIM cards.
MTN said data revenue now makes up 23 per cent of its total income, with some countries experiencing data revenue growth of up to 127 per cent.
The company has also concluded deals with tower management firm IHS to sell its 1,200 towersacross Zambia and Rwanda; and has announced a bidding process to sell its11,000 towers in Nigeria.
