Why do M&A in a Debt Squeeze When you can Grow With Less Risk and More Flexibility Through Strategic Partnerships?

DUBAI, UAE, December 9 - 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.
Bharti's 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

For further information please contact: Mia Mutic, Marketing Manager, Delta Partners. Tel: +971-4-369-2999 and mmu at deltapartnersgroup.com