Orascom Telecom Holding S.A.E. (OTH) was established in 1998 in Egypt and had grown exponentially to become one of the important players in the international telecommunications market. OTH was considered to be among the biggest and most diversified network operators in the Middle East, Africa and South Asia.
Orascom Telecom Risks of Internationalization Case Study Solution
Orascom Telecom Algeria (Djezzy) was established in February 2002 and it grew to become the market leader in terms of both subscriber numbers in addition to the quality of telecommunications services supplied. Following the large success Orascom had recognized in Algeria, Orascom desired to further enlarge. The manager thought that India could also be an excellent opportunity in which Orascom could enlarge its business. In 2006, OTH agreed to get a 19.3 per cent stake in Hutchison (HTIL) to penetrate the Indian marketplace.
India was an excellent opportunity as there were strong complementary similarities between Orascom and Hutchinson Telecom: both were successful operators offering mobile services in countries with large populations and low penetration levels of telecommunications services. However, in spite of this seeming to be an excellent opportunity, Orascom was not able to finish this operation because the expenses were not considered by it in an accurate way and several variables were blown off, concentrating only on the favorable facets.
PUBLICATION DATE: April 18, 2011 PRODUCT #: W11096-HCB-ENG
This is just an excerpt. This case is about GLOBAL BUSINESS
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