When it comes down to it, being Capitalist is a lot like being a pirate or a Viking -- you pillage and plunder a town until the wealth runs dry, and then move on to the next town. Wireless operators operate on the same principle, milking growth from home markets until they saturate, and then move on to emerging markets.
Russian wireless operator VimpelCom (NYSE:VIP) announced last week a $1 billion move into the emerging Vietnam market with the proposed establishment of a joint venture called GTel Mobile. Moving outside of Russia and the CIS for the first time, the operator of the Beeline mobile brand will be investing the money over several years to build out a network in Vietnam.
VimpelCom is hoping to take advantage of Vietnam's relatively low penetration rate -- 32% by CEO Alexander Izosimov's estimate -- and add more customers. If VimpelCom can replicate the success it has experienced in tapping growth in smaller markets such as Kazakhstan and Uzbekistan, the company has a better chance of keeping up the brisk 50%+ revenue growth rate it has seen over the last several years.
VimpelCom isn't alone, either. While behemoth China Mobile (NYSE:CHL) failed in a bid to purchase Millicom (NASDAQ:MICC) itself last year, the Chinese giant did buy out Millicom's 89% stake in Pakistan's Paktel earlier this year. And CEO Wang Jianzhou has made it clear that the company continues to look for acquisitions in Asia.
While China Mobile is steering clear of saturated markets such as Europe and the United States, other operators are braving the developed regions. Leading South Korean wireless services provider and Motley Fool Global Gains recommendation SK Telecom (NYSE:SKM) partnered with EarthLink (NASDAQ:ELNK) to form virtual operator Helio here in the U.S., hoping to leverage its expertise with advanced services to lure big wireless spenders.
In fact, it's hard to find any sizeable operator that doesn't have its hands in other markets. AT&T (NYSE:T), for example, has invested heavily over the years in ventures in emerging markets around the globe. And global operators such as Vodafone (NYSE:VOD) continue to look in smaller places for growth, as well. With all this activity, it's obvious that no place is safe for people who don't yet own a cell phone -- particularly if they're in an emerging market.
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