The pressure on Bharti Airtel share prices is expected to continue as the repercussions of the tariff war in the telecom sector get factored into the earnings estimates of analysts and fund managers. Already the numbers in the second quarter were an indication of tough times ahead. In the second quarter of the financial year 2009-10, wireless revenues had fallen by 1.6% on a sequential basis as subscriber growth of 8% over the previous quarter was offset by a 9% decline in average revenues per unit. Subsequently, the EBITDA declined to Rs 2,586 crore, a 4.9% decline over the first quarter. The management has been consistently looking overseas for growing its revenue base and recent reports that that it would acquire Warid in Bangladesh is also seen as an expensive move. Analysts at MF Global reason that the estimated acquisition price of $900 million would translate into an enterprise value of around $321 per subscriber for a company of relatively smaller size. Bharti itself enjoys an enterprise value of around $210 per subscriber. From an overall markets perspective, Bangladesh is seen to have lower competitive intensity and the top three players like Grameen, Axiata and Orascom have a 88% share, so the opportunity of an aggressive forth player exists. The tariffs in Bangladesh are high though the volumes low, however the average revenue per unit is quite at parity, hence Bharti could use an aggressive strategy in the market place. Bangladesh with a population of 160 million has a teledensity of just 31%, therefore there is scope for market expansion. However, Warid has revenues to the tune of $90 million in the calendar year 2009 and is not expected to have positive operating earnings will also mean that the contribution to Bharti would be minuscule. The focus is therefore on the acquisition price and or whether the Indian telecom major would actually also spend an additional $300 million to overhaul Warid?s operations as allegedly it has promised to Bangladesh Telecom Regulatory Council, the regulatory authority.