MTN, Bharti in value-added deal

Johannesburg, 06 Nov 2008

Bharti Telesoft and MTN Group have signed a value-added services (VAS) deal.

This will see the integrated VAS solutions provider supply all 21 MTN operations with multimedia messaging centre (MMSC), short message service centre (SMSC) and wireless application protocol (WAP) gateway solutions.

“MTN is a prestigious client for Bharti Telesoft and we are thrilled to be strengthening our relationship with the group via this major win,” says Bharti Telesoft VP for key accounts in Africa Sai Prabhu.

A Bharti Telesoft statement says it will provide SMSC, including its SMS router and gateway solutions, as well as MMSC and WAP gateway solutions. “We are looking forward to enabling enhanced interactivity among all segments of MTN's broad subscriber base, including both novice and advanced users of messaging value-added services,” Prabhu adds.

Failed talks

A possible merger between Bharti and MTN Group was called off earlier this year when talks failed between the two over share swapping. The initial discussions with Bharti began in May when Bharti proposed a buyout or merger of the companies. However, MTN baulked at the first proposed structure of the deal and proposed another.

In a statement at the time, Bharti explained: “This new structure envisages Bharti Airtel becoming a subsidiary of MTN and the exchange of majority shares of Bharti Airtel held by the Bharti family and Singtel, in exchange for a controlling stake in MTN.”

Bharti was unhappy with the deal proposed by MTN and decided to pull out. MTN's statement confirmed it had not been able to reach “agreement on a suitable transaction structure” with Bharti.