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Bharti Airtel, an Indian telecom company that bought Zain’s business operations in 15 countries of the much adored fast-growing market of Africa, made its first step on the continent in Uganda recently. Mr Manoj Kohli, the international chief executive and joint managing director Bharti Airtel spoke to Faridah Kulabako about their plans. Excerpts:
Who is Bharti Airtel?
Bharti Airtel is a young company established in 1995 in Delhi, India. We started as a small company with very little capital and technology.
Today, we are the fifth largest mobile operator in the world with 180 million customers and operating in 18 countries and the largest mobile-phone operator by subscribers in India due to our low tariffs.
We are, however, now focusing towards growing and raising ourselves from the fifth position to one of the first three positions in the world.
Why was Bharti craving to have Africa’s market that it went for Zain after failing with MTN?
Africa forms an important part of our growth strategy and we believe we have a track record in running successful operations in emerging markets like Africa.
The strength of our brand coupled with our unique business model will allow us to unlock the potential of Africa as an emerging market in the telecom sector.
What amount of debt are you inheriting from Zain?
The deal is $10.7 billion and out of that, we are inheriting a debt of $1.7 billion. $9 billion is the equity value of the deal.
Of the 15 operations acquired in Africa, why make the first step in Uganda?
Uganda’s market is precious for us to derive major growth since the tele-density in the country is among the lowest in the world at only 30 per cent. That means that only a quarter of the 31 million people in the country use mobile phone services. We want to double or even tripple it through providing innovative high quality affordable services.
We want to utilise the opportunity to increase penetration in both rural and urban areas and become a market leader.
How much money are you investing in Uganda?
We are investing more than $100 million (about Shs221.7 billion) in Uganda over the next two to three years to build leadership for Airtel in this market.
Time is not far when Airtel will become a leader in the Ugandan market.
In which areas are you going to invest the money?
We will invest it in strengthening networks, distribution and information and communications technology among the many other areas to lead us to our leadership target.
Which plans do you have for Uganda?
Our plans for the economy and society of Uganda are to take our network into rural Uganda because I believe majority of the 30 per cent tele-density is in urban areas. If you are to bring global world class connectivity to villages of Uganda, you need to bring Airtel into the market.
We will also bring into the market affordable services which Uganda’s common man has always longed for. Services are meant for both the rich and the poor people.
Our services will bring about speed, efficiency and productivity in Uganda’s mobile service sector and we promise reliable network provision in both rural and urban areas. We will also create employment for skilled, semi-skilled and unskilled people through a partner ecosystem that includes larger companies like Ericson, Nokia; IT companies that will create opportunities for people as distributors and dealers among others.
How will you offer affordable rates yet Uganda has one of the highest interconnect fees in the world?
We are committed to partnering with the government to drive affordable telecom services to the remotest geographies. The government has promised to reduce interconnect fees to increase affordability. We will also try infrastructural cost sharing with other players in the market.
We have experimented it before and it has worked, we don’t waste resources.
Companies tend to change management whenever they buy majority stake in any business, are we likely to see this in Bharti?
We will not change administration. We believe in encouraging domestic talent. If we are to bring in any people from India, they will not be more than four. These will be technical people to build new ideas, practices and technology to drive our target of being the best company in Uganda faster. So 99 per cent of staff will be Ugandan.
When is re-branding?
Brand change will be completed before the close of this year and it will be done once all over our operations in Africa. When that time comes, we shall let you know.
Which other services will you provide in the market?
We will also provide broadband services to make internet accessible to all Ugandans in both rural and urban areas. We will also offer enterprise business that provides end-to-end telecom solutions to corporate customers among others.
Bharti Airtel, an Indian telecom company that bought Zain’s business operations in 15 countries of the much adored fast-growing market of Africa, made its first step on the continent in Uganda recently. Mr Manoj Kohli, the international chief executive and joint managing director Bharti Airtel spoke to Faridah Kulabako about their plans. Excerpts:
Who is Bharti Airtel?
Bharti Airtel is a young company established in 1995 in Delhi, India. We started as a small company with very little capital and technology.
Today, we are the fifth largest mobile operator in the world with 180 million customers and operating in 18 countries and the largest mobile-phone operator by subscribers in India due to our low tariffs.
We are, however, now focusing towards growing and raising ourselves from the fifth position to one of the first three positions in the world.
Why was Bharti craving to have Africa’s market that it went for Zain after failing with MTN?
Africa forms an important part of our growth strategy and we believe we have a track record in running successful operations in emerging markets like Africa.
The strength of our brand coupled with our unique business model will allow us to unlock the potential of Africa as an emerging market in the telecom sector.
What amount of debt are you inheriting from Zain?
The deal is $10.7 billion and out of that, we are inheriting a debt of $1.7 billion. $9 billion is the equity value of the deal.
Of the 15 operations acquired in Africa, why make the first step in Uganda?
Uganda’s market is precious for us to derive major growth since the tele-density in the country is among the lowest in the world at only 30 per cent. That means that only a quarter of the 31 million people in the country use mobile phone services. We want to double or even tripple it through providing innovative high quality affordable services.
We want to utilise the opportunity to increase penetration in both rural and urban areas and become a market leader.
How much money are you investing in Uganda?
We are investing more than $100 million (about Shs221.7 billion) in Uganda over the next two to three years to build leadership for Airtel in this market.
Time is not far when Airtel will become a leader in the Ugandan market.
In which areas are you going to invest the money?
We will invest it in strengthening networks, distribution and information and communications technology among the many other areas to lead us to our leadership target.
Which plans do you have for Uganda?
Our plans for the economy and society of Uganda are to take our network into rural Uganda because I believe majority of the 30 per cent tele-density is in urban areas. If you are to bring global world class connectivity to villages of Uganda, you need to bring Airtel into the market.
We will also bring into the market affordable services which Uganda’s common man has always longed for. Services are meant for both the rich and the poor people.
Our services will bring about speed, efficiency and productivity in Uganda’s mobile service sector and we promise reliable network provision in both rural and urban areas. We will also create employment for skilled, semi-skilled and unskilled people through a partner ecosystem that includes larger companies like Ericson, Nokia; IT companies that will create opportunities for people as distributors and dealers among others.
How will you offer affordable rates yet Uganda has one of the highest interconnect fees in the world?
We are committed to partnering with the government to drive affordable telecom services to the remotest geographies. The government has promised to reduce interconnect fees to increase affordability. We will also try infrastructural cost sharing with other players in the market.
We have experimented it before and it has worked, we don’t waste resources.
Companies tend to change management whenever they buy majority stake in any business, are we likely to see this in Bharti?
We will not change administration. We believe in encouraging domestic talent. If we are to bring in any people from India, they will not be more than four. These will be technical people to build new ideas, practices and technology to drive our target of being the best company in Uganda faster. So 99 per cent of staff will be Ugandan.
When is re-branding?
Brand change will be completed before the close of this year and it will be done once all over our operations in Africa. When that time comes, we shall let you know.
Which other services will you provide in the market?
We will also provide broadband services to make internet accessible to all Ugandans in both rural and urban areas. We will also offer enterprise business that provides end-to-end telecom solutions to corporate customers among others.
