Africa - New playground for Chindia

February 2010 came with events which shows African love for both China and India.
Africa is clearly being identified as next growth markets and is being eyed by Indian and Chinese companies for expansion. We have seen news of active acquisition in field of Oil and Gas and also automobiles, example Mahidra and Tatas setting up shops in South Africa as part of MEA region strategy.
Next in line is telecom business landscape. Chinese and Indian players are currently first and second biggest markets by subscribers in the world and growing at a fast pace.
Wireless story has been successful in both the countries, and private wireless brands like Bharti and Unicom have made healthy balance sheet. There is surely an interesting scene building up in telecom in Asia region. Global telecom brands are actively looking options to enter both these markets whereas domestic telecom brands need to look outside to expand for growth. Bharti aggresive bid for MTN confirmed global ambitions of Indian players to buyout in other markets.
What best can be options for expansion than Middle East and Africa region. MEA telecom landscape had been monopoly driven by state owned incumbents till late, but with MEA countries opening market for new players in both fixed and mobile space, telecom opportunities are showing in ample.Market previously controlled by State incumbents, limited telecom services, low teledensity are just good starters for any telecom players to jump on the opportunity.
Therefore, for China and Indian telecom players, MEA region is a good bet, seeing region proximity, telecom congomelarate opening in multiple countries in MEA, valuations, opportunity are some of parameters to lure them for acquisitions.
An invisible race has just started between Chinese and Indian players to enter MEA market, with Bharti bidding for Zain African operations and China Unicom bidding for Nigeria Telecom.Valuations of both these deals are high like $10bn for Zain and $2bn for NITEL, still these valuations are seen positive by analysts for these players.
I am seeing telecom landscape in MEA and Chindia region wherein, you will have few big brands controling major of the market say 5 years down the line. This is in assumptions that M&A in Indian telecom landscape will kickoff as expected in 1-2 year timeframe.
Africa is surely next playground for Chindia telecom brand to develop and showcase their business muscles.