Why do M&A in a debt squeeze when you can grow with less risk and more flexibility through

strategic partnerships? Dubai, UAE, December, 2009 Delta Partners, the leading specialized telecoms advisory and investment firm released its latest White Paper entitled Strategic Alliances in Emerging Markets on 8th December. The paper describes the rationale and success factors for telecom operators to use Strategic Alliances - as opposed to classic M&A to drive expansion and rationalize costs. With the global economy still in the doldrums, many investment plans scaled back and access to debt funding scarce, telecom operators are increasingly considering growth through partnering with other operators in other forms than M&A. Some examples include joint ventures, minority stake investments or product development partnerships, says Federico Membrillera, Partner at Delta Partners. Strategic Alliances enable operators to enter new markets with little investment, to drive cost benefits or leverage strengths on the marketing or operational side from their partner. There are essentially three different types of alliances that telecom operators can consider. Firstly operator-to-operator e.g. Telefonica and China Unicom, where two operators in different geographies are sharing R&D, joint procurement of equipment and products development effort. This alliance also involves equity swap in which Telefonica and China Unicom purchase US$1 billion worth of stock in each other as opposed to mostly non-equity alliances described below. Secondly, multiple operator alliances e.g. Bridge Mobile which includes 11 operators in Asia and Australia to offer seamless connectivity and roaming across each others networks. Finally, on a more operational note, alliances are also formed between telecom operators and other players along the telecom supply chain e.g. Bhartis deal with equipment vendors in India in 2004, where it partnered with NSN and others to outsource its network, IT and call center. Value generated by strategic alliances can be substantial. In successful strategic alliances there is potential to achieve 1-4% revenue increase, 4-6% OPEX reduction and 5-9% CAPEX optimization, says Fede Membrillera, Partner at Delta Partners. Even though the credit markets will eventually open up and valuations will recover, Strategic Alliances will continue to be a viable alternative to pursue a lower risk and lower capital intensive growth. The impact and variety of Strategic Alliances, especially in a competitive sector such as telecoms, will ensure their longevity and replication across geographies.

Notes to editors Delta Partners is the leading management advisory and investment firm specialized in Telecoms, Media and Technology (TMT) in emerging markets. It has more than 130 professionals operating across 50 markets in the Middle East, Africa, Eastern Europe and Emerging Asia. From its offices in the UAE, Bahrain, South Africa and Spain, Delta Partners provides services through its three highly synergistic business lines: management advisory, private equity and corporate finance. Delta Partners delivers tangible results to its clients and investors through an exclusive sector focus, and a unique approach to services, combining strategic advice and a hands-on pragmatic approach. For further information please contact: Mia Mutic, Marketing Manager, Delta Partners. Tel: +971 4 369 2999 and mmu@deltapartnersgroup.com or visit www.deltapartnersgroup.com