08.11.08
Emerging markets to drive M&A growth (Mobile penetration in emerging markets)
Emerging markets to drive M&A growth
07 August 2008
The ongoing potential for rapid mobile subscription growth means that emerging markets are set to take over as the main driver of M & A activity, according to research released Thursday.
Findings from the Global Mobile M&A report, released by industry analyst and telecoms.com parent Informa Telecoms & Media, reveal that although M&A activity appeared to decline in 2007 and is likely to fall again in value in 2008, the number of deals still suggests an active market.
And while market consolidation traditionally represented the pattern in many of Europe and North America’s markets, increasing consumer demand for mobile service continues to attract investors to emerging markets, especially to Africa and the Indian sub continent.
Informa points to a market penetration of just 34 per cent across Africa and around 36 million net additions in the Indian sub-continent in the first quarter of 2008 alone, to illustrate the potential afforded by these two regions.
The analyst expects Vodafone to continue to focus on its emerging markets expansion strategy on the back of its $11.1bn purchase of Hutchison Essar in India, and its $4.5bn acquisition of Telsim.
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http://www.telecoms.com/itmgcontent/tcoms/news/articles/20017559855.html




