Consolidation in Telecom Sector; Mobilink to Acquire Warid Telecom
The quest of Warid Telecom’s sale is on for couple of years now. It was in June 2013 when Warid Telecom was first put up for sale by its parent company Abu Dhabi Group. But sale has not transpired so far. Since then many companies took interest in acquiring Warid but none of them went through with it. Earlier negotiations with Etisalat Group didn’t bear any results and China Mobile also pulled back from the talks due to high price set by the owners.
Also Read: Etisalat might buy Warid Telecom
Vimplecom was also one of the companies that showed interest in buying Warid back in 2013 but didn’t take part in the initial budding. Now it appears that Vimplecom, the operating firm of Mobilink is showing interest in acquiring Warid once again.
Warid Telecom was launched back in May 2005 and with some 9 million subscribers it is the smallest operator of the country. Although Warid avoided taking part in 3G/4G spectrum auction, instead it jumped straight from 2G to LTE services. The operator also claims to have the largest post-paid customer base in the industry, it has also the largest number of 4G LTE subscribers with service currently present in 12 cities so far.
Warid has invested 100 million dollars for its 2G and LTE up-gradation lately and it seems that it will further strengthen its position in market. The potential value of acquisition expected by Abu Dhabi Group back in 2013 was round one billion dollars but now that may go down due to lower ARPUs and lessor Subscribers. The other value that Mobilink could get from this transaction would be entering 4G LTE services without getting into auction process which will surely strengthen its market position.