Bharti Africa ops slow profits
BUSINESS| Nov. 5, 2011, 8:38 a.m.
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.
MORE BUSINESS NEWS
Collymore: PPP transparency to fuel Africa’s renaissanceAfrica’s renaissance will be fueled by transparent partnerships between governments and private businesses working to improve the livelihoods of the continent’s population, Safaricom CEO Bob Collymore has predicted. Read More
Lack of technology bane of Nigeria’s SMEs, says Matt O’Bell chiefAside financial constraints, the non-application of technology has been identified as one of the constraints of small and medium enterprises (SMEs) in Nigeria. Read More
Telecom M&A and digital convergence to lead deal activity in AfricaTMT Finance is teaming up with IHS Towers, the largest mobile telecommunications infrastructure provider in Africa, Europe and the Middle East, to bring an international audience to Africa’s technology hub, Lagos, for the first event of its kind in Nigeria. Read More
Reach for Change Africa calls for strengthened social entrepreneurshipReach for Change Africa is calling on social entrepreneurs, NGOs and government to play their role in strengthening the social entrepreneurship sector in Africa on International Day of Youth 2016. Read More
Stanford Seed Entrepreneurs join top Silicon Valley business leaders at Global SummitAfolabi Abiodun, CEO of Nigeria-based telecommunications company SB Telecoms, couldn’t quite believe his eyes as he stood on Stanford University’s bustling Silicon Valley campus recently. Read More
Etisalat, YuuZoo launch e-commerce portal for SMEsNigeria’s most SME-friendly telecommunications operator, Etisalat, in partnership with Singapore’s YuuZoo Corp, has unveiled a bespoke e-commerce platform, SME Arena, to facilitate the growth of Small and Medium Enterprises (SMEs) in Nigeria. Read More
Mstore plans $50m African expansionMidcom Group has announced expansion plans aimed at making its Mstore the largest mobile and electronics retailer in Africa. Read More
*astTECS Expands Operations in Africa*astTECS, a leading provider of Enterprise Telecom Technology Products and Asterisk based Open Source Communication Solution, is expanding its Africa footprint with a presence in Ghana and Botswana. Read More
The Tech Revolution: Sage Sets out the Vision for African BusinessesSage, a market leader in cloud accounting software used its global Sage Summit 2016, held this week in Chicago, to outline its strong commitment to future technologies, with a focus on new and existing initiatives that power business growth. Read More
FEATURED STORYFinancial services sees AI as both opportunity and threat
Banking is already a key area where technology is having an impact throughout Africa, and a new survey assesses the impact artificial intelligence will have on this sector.
BEST READ NEWS
IN DEPTHAccess and Use of ICT stats released
Statistics Botswana has released the first results of the 2014 Information and Communication Technology Household Survey.
COMPANY NEWSEricsson first to deliver 5G NR radio
Ericsson is commercialising the world’s first 5G NR radio for massive MIMO, with the first deployments coming in 2017.Tigo customers win cash prizes from ‘Wo suro aaa wondi’ promotion
Tens of Tigo customers have won various cash prizes and branded gift items as part of the telecom operator’s biggest consumer promotion for 2016.