After RComm and South Africa-based telecom operator MTN called off their exclusive talks on Friday, analysts in the industry feel it is quite likely that MTN will now look at options in the West Asia. They say Bahrain Telecom, Saudi Telecom and Kuwait Telecom could be possible options for MTN to look at.
According to a Mumbai-based telecom analyst, MTN?s second failure to get into a joint venture with an Indian telecom operator has come as a big blow for Reliance Communications, as it would have easily surpassed rival Bharti Airtel had the deal happened. M&A watchers had also been keenly tracking the deal, which would have added one more to the growing list of India Inc?s overseas deals.
There have also been media reports that MTN has approached Bharti Airtel again. However, analysts feel it will not be easy for both the parties to change their fundamental approach towards a joint venture.
Romal Shetty, telecom analyst with KPMG, said, ?If MTN approaches Bharti for the second time, both would now probably have to re-evaluate the strategy going forward. Since there are not many options left with MTN, unless it starts looking at the new entrants, it is quite likely that MTN will look at Middle East.? Another Mumbai-based telecom analyst said, ?It is quite likely that MTN will now look at Middle East telecom operators or US-based mid-sized private equity operators.? Sources say as MTN?s chairman Cyril Ramaphosa is a former secretary-general of South Africa?s ruling African National Congress, it won?t be easy for MTN to look at foreign companies owing to political pressures.
