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.
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.