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Batelco in Talks to Acquire Certain Cable and Wireless Assets

Batelco in Talks to Acquire Certain Cable and Wireless Assets

Bahrain Telecommunications (Batelco) is in talks to acquire the assets of British provider Cable & Wireless Communications in Monaco, the Maldives, the Falklands, and other islands, for a price said to be in the region of $1 billion. Batelco, facing declining revenues in its home region, would gain access to new markets with a total of 543,000 mobile and 125,000 fixed-line subscribers.

Tarifica’s Take

While it is hardly surprising to us that operators in search of growth would be looking for acquisitions, we believe that a better way in the long run would be for these companies to enhance their services by providing customers with cloud storage and consulting, unique apps and other value-added features. What Batelco is trying to do will increase the size of the company’s business, but it will not inflate the growth rate itself. Acquiring shrinking businesses is not a route to long-term success. Innovation is.