Minute factory Model at Zain: Bharti

Minute factory Model at Zain: BhartiBharti has already started with preparations to manage Zain. Once they take the driver's seat, they will try and replicate their minute factory model. Bharti has already mastered the minute factory model. The mega plan is also going to combine its low cost structure along with the minute factory model.

As Bharti does in India, it will try and improve productivity at Zain in South Africa by working on infrastructure sharing and will make contracts high are based on a network-utilization model.

The Bharti management will have its focus on exploring usage elasticity and low penetration. Around 36% across Zain's Africa operations is marked as the key focus areas was an outcome of a meeting with HSBC Securities and Capital Markets. Average minute's o f usage which is calculated to be about 110 per user is just about 1/3rd of an Indian user.

Zain has accepted an offer from Bharti at a valuation of $10.7 billion, excluding Sudan and Morocco. Pricing usage strategies tend to be driven by industry dynamics rather than operator specific strategies.