Emerging mobile markets prove tricky - again

IT LOOKS like the much-heralded deals between the South Africans – in the shape of MTN - and the Indians - in the shape of Bharti and now Reliance - are now off. Vodafone's deal with Ghana looks dodgy, too.

Last week the threat of legal action between the warring Ambani brothers put an end to creating an emerging markets mobile behemoth by combining the might of MTN and Reliance Communications.

But as we all know – no matter which country you're in – dragging commercial grievances through the courts takes ages to resolve. So the MTN/Reliance deal was called off.

Previously, MTN had been talking to India's Bharti Telecom. So it looks as if India is out as a potential tie-up for the South Africans.

The INQ favours a tie-up with Eygpt's Orascom but most observers are touting China as the next potential target for MTN.

Meanwhile Vodafone's efforts to buy into state-owned Ghana Telecom appear to have run into problems. The opposition party, the NDC, is blocking the government's attempt to sell a 70 per cent stake in Ghana Telecom.

It might seem a bit of fuss over nothing since Ghana Telecom is the country's third largest mobile phone operator but it also happens to be the country's dominant supplier of broadband.

Vodafone is apparently "confident" that it can save the deal, although it may take time to win over the opposition in the near term. Shades of its experience with the Vodacom situation in South Africa, here µ