As a part of service provider benchmark analysis, ‘Telegeography’, a leading telecom market research firm observed that, 16 leading telecom service providers across globe reported revenue growth more than 45{af589cdba9d77786c8c861317dbad60bba1e2ebbf56e2ffab874a1b59fde9ce3} in last three years. And as expected, Indian telecom market leader Bharti Airtel is among the world’s top revenue growth reporter over past three years. Report has few more inputs to highlight:-
- Highest revenue growth is observed in least penetrated markets such as Africa, Latin America, Middle East, India & China.
- MTN, the South African Telco reported the highest revenue growth in last three years, followed by Bharti Airtel & Zain , which have almost doubled their revenue in last three years.
- Among bottom five, four companies are W. Europe’s incumbent telcos, whose growth rate almost stood still for last three years. BT & NTT are facing challenges in highly competitive market, where their revenue is also dependent on wireline segment. Telefonica, DT & FT are taking strides to expand their business beyond home markets, which faces stiff competition and diminished growth in W.Europe market.
- Despite their sheer size of operation America Movil, Vodafone & China Mobile recorded revenue growth around 45-70{af589cdba9d77786c8c861317dbad60bba1e2ebbf56e2ffab874a1b59fde9ce3} range behind top three performers. Only other company which managed to perform better is AT&T, ranked at fourth spot.
Recently Bharti Airtel and Zain have agreed to enter into exclusive discussions until March 25 for the acquisition of Zain’s African unit (Zain Africa BV) based on an enterprise value of $10.7 billion. Though this potential transaction does not include Zain’s operations in Morocco and Sudan, Airtel’s move to acquire Zain’s African unit would show positive signs in coming years. After garnering 110 million subscribers in India, Bharti’s move to enter into least tapped African market clearly indicates the growth trends in coming years. Very few companies have shown such adaptability in recent years and if all goes well, Airtel might become the top revenue earner in coming years.
‘In next five years growth rate in telecom may fall to less than half of what it has been reported five years back and companies which are equipped to manage/sustain growth will be rewarded richly’ says TeleGeography’s John Dinsdale. Bharti Airtel has just dialed right number!
