African mobile providers extend geographical footprints

As European and Middle Eastern service providers compete for a slice of the African mobile market, African operators are also extending their footprints across borders to consolidate their telecom businesses.

Kuwait's HiTS and Zain and the U.K.'s Vodafone each have a strong presence in Africa, but South Africa's Telkom and Mobile Telecommunication Network (MTN) have announced they will defend and grow profitable margins through expansion.

"In line with the vision to be the leader in telecommunications in the emerging markets, we are continuously seeking value enhancing opportunities that meet the company's investment criteria in existing and new territories," MTN spokesperson Nozipho January-Bardill said in an interview Tuesday.

The company will specifically focus on Africa's voice and data markets, January-Bardill added.

To expand it data services, MTN has acquired Verizon Business South Africa. The acquisition of Verizon -- which provides Internet services solely to corporate clients in Botswana, Kenya, Namibia, South Africa and Zambia -- follows similar acquisitions in Nigeria, Cote d'lvoire and Cameroon.

The company has also approved a US$3.6 billion expenditure for infrastructure development with the aim of improving its position in the post-paid data market, January-Bardill revealed.

MTN believes that the ongoing deregulation of the telecommunication industry in many African countries will help it explore new opportunities, January-Bardill said, given that the overhaul allows the company to leverage existing assets.

MTN already operates in 16 African countries, including Ghana, Nigeria, Uganda and Zambia.

Telkom South Africa also plans to expand its reach in Africa's voice and data markets, according to CEO Reuben September.

The company aims to dominate the telecom market by serving as a pan-African integrated service provider -- offering international communications and interconnectivity, hosting and managing data service, and providing wireless voice and mobile broadband solutions, September said this week.

Among other growth strategies being considered by Telkom is the transformation of its fixed-line business to incorporate key value-added services, including fixed-mobile converged services.

Expansion in the data market by African service providers is part of a move to provide customers with converged services, such as Internet and video.