Business
Airtel-Warid deal changes market
Publish Date: Apr 24, 2013
Airtel-Warid deal changes market
  • mail
  • img
newvision

By vision reporter

The acquisition of Warid Telecom by Bharti Airtel, officially confirmed on Tuesday, brings to a close months of speculation and the first in-country acquisition by another operator.

Market dynamics had always hinted at possible merger or acquisition by one or several players going forward as the market completely changed about three years ago at the peak of tariff wars and new market entrants.

A statement from Warid yesterday said “Warid has entered into a definitive agreement for acquisition of its Uganda telecom operations by Airtel” confirming Saturday Vision’s story.

The acquisition is a historical feat in one of Africa’s most vibrant telecom markets that now opens new dynamics for the industry. It means the new entity that will emerge from Warid and Airtel, should the two chose to go for a single brand image, will have a combined subscriber base of about 7.4 million, bringing them close to the current giant MTN’s 7.7 million as of 2012.

While MTN still controls more than 50% of the market and has been almost the only entity making profits in a tight industry, Warid and Airtel’s combined force can now afford the luxury and flexibility of opening a new market war as the two move neck to neck.

Bharti Airtel can also now exploit the new scale by pricing its products to enjoy volumes as opposed to selling to a few at a premium.

Mohammed Nahayan, a Warid Telecom Uganda board member, said the deal is a win-win for Warid customers, while Manoj Kohli, the chief executive of Bharti Airtel, said the agreement, which is also the first in-market acquisition in Bharti Airtel’s history, will translate into a healthier telecom sector in Uganda.

Workers at various Warid offices were this week alerted that they will have a new employer in a month or so, and that their jobs cannot be guaranteed, but no further information was given.

The statements, comments, or opinions expressed through the use of New Vision Online are those of their respective authors, who are solely responsible for them, and do not necessarily represent the views held by the staff and management of New Vision Online.

New Vision Online reserves the right to moderate, publish or delete a post without warning or consultation with the author.Find out why we moderate comments. For any questions please contact digital@newvision.co.ug

  • mail
  • img
blog comments powered by Disqus
Also In This Section
Dr Maggie Kigozi: Obstacles in businesses are jewels
Dr Maggie Kigozi, director Crown Beverages Ltd has challenged the youth to consider obstacles in starting and running businesses as opportunities to create better lives....
How to widen Uganda’s tax base in a large subsistence economy
Uganda’s tax base remains small and the country is grappling with measures on how to widen the tax base in light of decreasing donor funds and pressures to finance the national budget....
UAE Exchange Uganda observed World Food Day
UAE Exchange, the leading global remittance, foreign exchange and payment solutions brand observed World Food Day on 16th October. This year the theme was Family Farming: “Feeding the world, caring for the earth”...
Nigerian cleric warns Uganda over oil curse
Rev Father Edward Obi, a leading civil society activists fighting against the effects of the oil curse in Nigeria has warned Uganda that since oil has been discovered Ugandans are not safe from the negative effects the resource brings....
Oil to spur capital markets – Nsamba
This year marks 18 years since the Capital Markets Authority (CMA) was formed....
UBOS releases Producer Price Index
THE indices for hotels and restaurants indicate that annual prices for hotel services fell by 2.5 percent during the period of April, May and June 2014, compared to the same period in 2013...
Should the absence of bride price prevent couples from wedding?
Yes
No
Can't Say
follow us
subscribe to our news letter