1 AIT Asian Institute of Technology

Merger & acquisition strategies and motives in the telecom sector

AuthorNarayan, Ashish
Call NumberAIT RSPR no.SM-06-44
Subject(s)Telecommunication Mergers

NoteA research study submitted in partial fulfilment of the requirements for the degree of Master of Business Administration
PublisherAsian Institute of Technology
Series StatementResearch studies project report ;no. SM-06-44
AbstractMerger and Acquisition (M&A) activity is on the rise as companies are back in good health after a dull phase of four years following the economic slowdown. The Telecom sector, which has also undergone recession, has also made a strong comeback. This sector has diverse characteristics of huge cash flows and revenues (like Utility) and a high growth rate and international character (like Information Technology). Driven by technological, regulatory and financial conditions, service providers are looking to expand across geographical boundaries and services in most parts of the world (except USA). Together with this phenomenon, there is rising consolidation to derive synergy benefits and establish market dominance. Geographical expansion strategies are found to be regional, multi domestic and global in character while expansion across service lines is a move to become an integrated player providing voice telephony (fixed and mobile), Internet (broadband) and Cable Television. The dominant motive for M&As are Consolidation in horizontal markets, Geographic market entry and Consolidation in vertical markets. Between strategy and motive, finance plays a very crucial role and effective management of debt and deployment of cash flows is one of the key success factors in carrying out M&As. Also, remaining focused on the strategy and flexible in approach is observed as an important characteristic for growth.
Year2006
TypeResearch Study Project Report (RSPR)
SchoolSchool of Management (SOM)
DepartmentOther Field of Studies (No Department)
Academic Program/FoSMaster of Business Administration (MBA) (Publication code=SM)
Chairperson(s)Venkatesh, Sundar ;
Examination Committee(s)Pandey, Indra Mohan;Kauranen, Ilkka ;
Scholarship Donor(s)AIT Fellowship ;
DegreeResearch Studies Project Report (M. BA.) - Asian Institute of Technology, 2006


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