Vimpelcom comes West: genius or madness? (Reuters)

Barcelona (Reuters) – as the cream of the best way to make money from mobile data telecommunications industry debates Alexander Izosimov to Vimpelcom only in betting its balance sheet over it in Western Europe outside fashion.

Vimpelcom Izosimov aims to make mobile phone company in the world, Fifth in competition with the likes of Vodafone and Telefonica after buying telecom assets of Egyptian Tycoon Naguib Sawiris for about $ 6 billion.

Company phone number two of Russia is bidding to buy emerging markets control focused Orascom Telecom and check of 100% of Italy's wind, although Egypt is not included in the transaction.

Izosimov, speaking at the Mobile World Congress in Barcelona, was unrepentant about the annual strategy.

"Actually we will create a platform different to riding the wave of data growth starting from the West to emerging markets," said Izosimov.

The Italian market with its high smartphone penetration and margins close to 50% is perfectly positioned for growth data, said and added that she made her mind to pursue the deal with Sawiris mobile fair last year.

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Buyers in emerging markets has fuelled telecom mergers and acquisitions in recent years as their own markets have become more competitive and growth has slowed to high single digits.

Not many leaders from developing economies are expected to follow Izosimov in Western Europe, where growth is much lower still, though.

"Vimpelcom is brave, going West, but Western Europe has a history of managing margins ... on a good day, you have 2-3 percent growth," said Mark Newman, chief research officer at Informa Telecoms & Media.

While other executives share the belief in the potential of mobile broadband--AT&T CEO Randall Stephenson described as the biggest transformation in his 28 years in the industry--most companies are still deciding on the business model to address it.

MTS, the largest mobile phone companies of Russia, thinks that obstacles such as the high cost of international roaming will be cap application for the mobile internet in the coming years.

"I'm not seeing big money going after again, mobile data," said MTS Mikhail Shamolin chief executive.

"Remember, people who have invested in the internet in 1998 have lost everything. What you expected to happen in 2000, did not happen until 2008. Vimpelcom may prove to be right (by moving quickly), but we are taking a more conservative approach. "

Rich cash Turkcell is planning on staying close to home, if makes acquisitions.

"We love our neighborhood and the North Africa, we realize in those regions," said Executive Director Sureyya Ciliv.

UAE Etisalat, also a profiteer prolific with the ambition of becoming a global top 10, it's cool on the Western Europe.

Jamal al Jarwan, head of international investments to Etisalat, is trying to take a stake in Kuwait's Zain for $ 12 billion, said companies need to approach M & A in a selective way to be successful at it.

"We've got serious in 2006, but to be honest at first we were shooting in all directions ... We looked at the Portugal Telecom, active in mature markets ... but decided that we needed a more focused strategy, "he said.

"M & A is sexy, but it is difficult to get your ABCs collection".

Etisalat's portfolio includes assets in 18 countries ranging from West Africa to Indonesia.

(Editing by David Cowell)