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Introduction

Bharti Airtel An Introduction

The company is Indias largest telecom services operator with its operations spread all over India.

Also with its acquisition in Bangladesh last year the company is now the largest telecom services

provider in the region of India, Bangladesh, and Sri Lanka as well. The total customer base of the

company as on 31st

March 2010 stood at 127.8 million subscribers. In addition to the mobile services

that the company provides, Airtel also pioneers in business of broadband services, WiFi services,

mobile internet services, DTH services and also has its operations in the retailing industry with a tie

with worlds largest retailer, Wal-Mart in India.

With

companys recent acquisition of Zain Telecoms Africas operations, the company has now become

the 5th

largest telecom services provider in the world (www.infotechindiatimes.com). The company

paid a total of 9 billion USD for buying its operations and it would also pay of the additional debt that

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the company has which is worth 1.4 billion USD as well (www.infotechindiatimes.com). With this

deal the company has got it operations in 15 African nations and here Nigeria is the largest market for

Zain. Though in this the company does not its operations in South Africa which is the most developed

nation in Africa and this assignment deals with the investment decisions regarding Airtels entry in

South Africa.South Africa An Introduction

The nation of South Africa is the most developed nation in the African continent which is not just

economically developed, but at the same time the nation is extremely stable in relation to the other

countries in the African continent. The nation has not just performed well on the economic front, but

on the socio-cultural aspect as well the nation has done quite well. The nation in the recent years

emerged as the topmost destinations for investors from around he world in the African continent.

General overview

GDP of the nation287.2 billion USD (www.cia.gov); GDP per capita10,300 USD (www.cia.gov); GDP growth rate(1.8%) (www.cia.gov) Stock of FDI73.67 billion USD (www.cia.gov) Total area1,219,090 sq kilometers (www.cia.gov) Population of SA49,109,107 people (www.cia.gov)

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Literacy rate 86.4% (www.cia.govSection III ASSESSMENT OFTRADE AND INVESTMENT BARRIERS

Fdi and trade policies in telecom market of south Africa

South African government has taken up many polices to promote open market, privatisationa and to

boom foreign direct investment in the country. Therefore in telecom industries also the government

has freely open south African market for investment purposes(www.southafrica.info.com)

As South Africa is the member country of WTO therefore it is abiding with the obligations of Doha

development leading to less trade barriers. In case of telecom industry in South Africa there are less

restrictions, therefore many competitors and highly competitive market.

Competitors analysis

Telecom industry in south Africa is highly competitive industry. The south African market has

increase in internet browsers by 121% rising to 3.8 million users in may 2007(www.southafrica.info).

The main competitors in the market areVodacom, Cell-C and MTN who are providing services to

about 39 million subscribers which is 80% of the population. It is 4th

largest market in the world.

The above analysis clearly shows that there is high growth in the market but along with it few players

are dominating 80% of the market. There

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