MTN Group Limited

Author: Baron, David P.
Source: Harvard Business School
Year: 2008
Company Name: MTN, Reliance Communications
Number of pages: 7

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Abstract:

MTN, a very successful South African wireless telephone company, began in 1994 with the founding of the cellular telephone company M-Cell. In May 2008, MTN entered into exclusive discussions with Reliance Communications Ltd., the second largest wireless company in India, regarding possible business combinations including a merger. The two companies operated in different markets had somewhat different strengths. MTN was experienced in entering new national markets and in efficiently building infrastructure while Reliance Communications was experienced in serving very poor customers in rural areas. Regardless of whether the two companies agreed to some sort of combination, MTN had to deal with challenges in its ongoing operations and evaluate new opportunities in emerging markets. This case explores various issues influencing MTN's analysis, with a focus on non-market factors including taxation, government regulation, and political barriers to financing.