Bharti Airtel Ltd will invest about $100 million in Niger to improve the reach and quality of its network in the West African nation by the end of 2012. Bharti took over mobile operations in 15 African nations when it completed the acquisition of the African assets of Kuwait's Zain last month. The deal made it the world's No.5 mobile phone operator by subscribers.
The company, which is facing tough competition in a crowded home market, is betting on opportunities in Africa where mobile phone penetration is 32 per cent, less than India's 50 per cent, and there are fewer competitors.
The penetration rates in Niger, a poor desert nation currently in the grips of a food crisis, is one of the lowest at 10 per cent to 11 per cent. If Niger is to develop, it must reach (penetration rates) of 40 per cent. Earlier this year, Bharti spent $9 billion buying Zain's assets in Africa.
The acquisition gives Bharti 42 million customers in Africa and $3.6 billion in annual revenue, but there are financial and management challenges as it deals with 15 governments and people speaking more than 1,000 languages.
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