After the MTN debacle, Bharti Airtel Ltd, the country?s largest mobile service provider, will no longer eye big acquisitions across the globe. In a change of strategy, the company will opt for the mobile virtual network operator (MVNO) model to increase its footprint overseas than outright acquisitions. The company has identified 27 countries for the MVNO model, which it believes would be more feasible and less time-consuming to materialise.
The strategy could even see the company acquiring MVNOs with a controlling stake across the globe. The move, sources say, is in line with the company?s strategy of hedging against stiff competition in future, once the MVNO route is allowed in India too. Telecom Regulatory Authority of India had recently released its consultation paper on whether or not to allow the MVNO model in the country.
Under MVNO, an operator does not have a telecom licence or infrastructure but buys minutes in bulk from a licensed mobile network operator and uses its own brand to sell it to subscribers. According to company sources, ?the company is now going to have a three-fold strategy to increase its global footprint; first would be the MVNO route, second is the investment lined up in Sri Lanka and its presence in Seychelles, Jersey and Guernsey, and the third would be smaller acquisitions, where the risk factors would be much lower.?
The Bharti spokesperson refused to comment on the issue. Mobile Virtual Network Operator model has gained popularity in the last few years and there are over 300 MVNOs registered throughout the world.