Bharti Africa ops slow profits

BUSINESS

|
Image: Bharti Group CEO Sunil Mittal. By BiztechAfrica
Bharti Group CEO Sunil Mittal

Indian operator Bharti Airtel’s latest results show its African operations are still weighing the company down.

Bharti acquired Zain’s African operations last year.

In the company’s results for the quarter ending 30 September, Bharti said it had seen a decline in profitability overall, with many of its African operations still struggling to show a profit.

However, the company is reported to be confident that Africa will see a turnaround and grow to profitability over the next few years. Bharti Airtel CMD Sunil Mittal said Africa’s revenues rose 23% to over USD1 billion during the quarter, with plans afoot to expand operations in the continent.

As at the end of the quarter the company had 48.4 million GSM mobile customers on its network. During the quarter, the company added 2.1 million customers, with an ARPU of  USD 7.3 per month. The blended monthly usage per customer, during the quarter was at 128 minutes.

Among the African industry developments highlighted in the report, Bharti Airtel said interconnect rates in Ghana are being reviewed by the regulator, with Bharti in discussion with the Government on driving the interconnect rates lower based on Long Run Incremental Cost (LRIC) study.

In Tanzania, discussions are currently ongoing with the Government and Regulator for implementation of Mobile Number Portability (MNP).

The target given by the Regulator is December 2011. However Operators have requested for a postponement to June 2012.

Meanwhile, in Uganda, Bharti said current interconnect rates are being reviewed; in Burkina Fasodiscussions have commenced for the acquisition of a 3G license.

And in Gabon, aMOU has been signed between the Regulator and Airtel on the granting of a 3G license and the extension of the 2G license to match the duration of the 3G license.



Share the News

Get Daily Newsletter

comments powered by Disqus

MORE BUSINESS NEWS

Ekocenters to empower Rwanda’s women entrepreneurs

Ericsson and The Coca-Cola Company have launched a pilot to bring mobile connectivity to EKOCENTER in Rwanda, with a view to expanding the partnership to other countries. Read More

Africa’s youngest entrepreneurs stand to win $75,000

The Anzisha Prize is expanding, after initial success, to provide increased support to entrepreneurial youth and partner organisations to drive pan-African economic growth to 2020. Read More

New age e-commerce consumers challenge traditional business models

African consumers are increasingly searching online platforms with commercial intent, says DHL. Read More

VMware appoints Bask Iyer as chief information officer

VMware has announced the appointment of Bask Iyer to the role of senior vice president and chief information officer (CIO) of VMware. Read More

SpeedCast acquires Geolink

SpeedCast International Limited, a leading global satellite communications service provider, has announced the acquisition of Geolink Satellite Services, a leading provider of satellite communications solutions in the African region. Read More

Out of the Dark: Survival guide for businesses during load-shedding

As Africa’s premier integrator of business continuity services, ContinuitySA’s team spends a lot of time identifying risks and how to mitigate them. One risk that has become very real for South African businesses is load-shedding.  Read More

Insurance body: ICT essential

The newly established Insurance Institute of Botswana (IIB) says in this day and age it was virtually impossible for organisations, insurance companies included, to operate without incorporating ICT in every facet of their operations. Read More

VMware appoints Scott Dodds as new Vice President, Channel and Alliances in EMEA

VMware, the global leader in virtualisation and cloud infrastructure, has announced the appointment of Scott Dodds as Vice President of Channel and Alliances in Europe, Middle East and Africa (EMEA). Read More

IHS Towers awarded Telecom Finance Deal of the Year

IHS Towers, Africa’s leading independent mobile telecommunications infrastructure provider, has won TelecomFinance’s 2015 award for Deal of the Year.  Read More

Moving from doer to influencer – the shifting role of the CIO

The role of the chief information officer (CIO) has evolved over the past few years, with CIOs no longer just the decision makers for IT systems.  Read More

PRESS OFFICES

Sage ERP AfricaSAP AfricaSage Pastel AccountingTrust PayVMWareSamsung ElectronicsMitsumi DistributionPhoenix DistributionMTN BusinessSchneider ElectricMultichoiceMicrosoft 4Afrika

FEATURED STORY

2bn priced out of internet access2bn priced out of internet access

A new report from the Alliance for Affordable Internet shows that the price of broadband remains prohibitive for billions in developing and emerging countries, with women and rural dwellers hardest hit.

IN DEPTH

Kenya’s digital TV battle hots up Kenya’s digital TV battle hots up

Kenya’s journey to Digital TV broadcasting took a new turn this week, when the Communication Authority of Kenya (CAK) accused three local media firms of intent to disrupt the process.