PurposeThe purpose of this paper is to analyse the recent restructuring of the African mobile telecommunications sector, to examine how mobile telecommunications supports economic development and to assess how such development will be influenced by the restructuring.Design/methodology/approachAn original database has been compiled and linked to recent merger and acquisition activity in the African telecommunications sector. The theoretical/case study literature on the link between mobile telecommunications and economic development is reviewed. This is then linked to the recent restructuring activity in Africa.FindingsAfter something of a lull during the mid‐2000s, M&A activity has once again become frenetic over the past two years. It is too early to be certain of the eventual structure of the African mobile telecommunications sector, but in the medium term the reallocation of networks to well‐funded and efficient operators should provide a spur to renewed economic growth.Research limitations/implicationsThe structure of the sector is never in final equilibrium, so it is difficult to assess how long it will take for the benefits for economic growth to show through.Practical implicationsIn the past, inadequately funded and managerially limited operators have expanded beyond their capabilities. Hopefully, this time around ambition will not outstrip capability.Social implicationsEconomic growth and societal development should be enhanced by recent M&A activity in the African mobile sector.Originality/valueThere are precious few completely up‐to‐date case studies on mobile telecommunications. This will help to fill the existing gap.
No abstract
The trading difficulties affecting the telecommunications sector have continued to deteriorate over the past year and a half. The purpose of this article is to update the outlook as presented in previous articles on the same general theme. What this latest version demonstrates is that there has been a widespread write-down in the capital values of telecommunications companies of all kinds on a scale that has few, if any equals in other sectors. The article analyses the reasons for this phenomenon, concentrating upon the issue of indebtedness. Data are presented on a variety of indicators which suggest that the sector is mired in a spiral of debt, credit downgrades and bankruptcy. This has implications for the structure of the sector in the medium term, but consolidation must await signs of an upturn in the fortunes of companies in a position to act as predators rather than prey.
The telecommunications industry is often described as being a global industry. However, the fact that it exists throughout the globe does not necessarily imply that its constituent companies are individually global in their operations. So far, little interest has been expressed in determining whether they are or are not in practice, but to do so requires that one first determine how this is to be measured. This article focuses on the measurement of internationalisation within the mobile telecommunications industry where the phenomenon can be most clearly identified. Drawing on the literature, four dimensions of internationalisation are initially identified and a database is constructed for the year ending 31 December 2005 that provides hard evidence in relation to these dimensions. Analysis of the results reveals that just a handful of the companies in the sample can be considered to be meaningfully international when all four criteria are taken into account, and that Vodafone among them is best placed to describe itself as a global mobile operator although there are too many reservations for the term global to be seen as an appropriate label. The results highlight the complexity of internationalisation, with operators tending to do well on some of the criteria but not on others, and the paper illustrates how data availability influences the choice of criteria. Data availability also necessitates a trade-off between sample comprehensiveness and detail
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