Hutch Vodafone Merger

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A brief study on Voodafone’s purchase of stake in Hutchison Telecom International GLOBSYN BUSINESS SCHOOL

"Hutch" is the GSM mobile network of Hutchison Teleco Limited, which is a fully owned subsidiary of Hutchison Telecommunications International Limited (HTIL), a listed company in the New York and Hong Kong stock markets. HTIL is a leading provider of telecommunications services, operating or rolling out mobile telecommunications services in 9 countries, offering subscribers a range of telecom services from mobile and fixed line voice calls to the very latest 3G technology. Hutch provides its subscribers with affordable and easily accessible mobile telephony services. The brand Hutch was launched in 1992 and currently it’s services are being expanded to cover the entire country.

Operations Circles Revenue EBITDA Profit Base ARPU

: 1992 : 16 + license for 6 circles : $ 1,282 Million : $ 415 Million Operating : $ 313 Million Subscriber : 29.2 Million : Rs. 340.15

Hutch and Vodafone Merger

Page 1

Growth of Hutchison Essar
 1992: Hutchison Whampoa and Max Group established Hutchison Max  2000: Acquisition of Delhi operations Entered Calcutta and Gujarat markets through ESSAR acquisition  2001: Won auction for licenses to operate GSM services in Karnataka, Andhra Pradesh and Chennai.  2003: Acquired AirCel Digilink (ADIL - Essar Subsidiary) which operated in Rajasthan, Uttar Pradesh East and Haryana telecom circles and renamed it under Hutch brand  2004: Launched in three additional telecom circles of India namely Punjab, Uttar Pradesh and West Bengal.  2005: Acquired BPL, another mobile service provider in India  2007: Vodafone acquired HTIL stake in Hutchison-Essar  2008: Vodafone acquired Dishnet Wireless, a service provider in Orissa and has successfully launched its services in the following circle.  2008: Vodafone launched the Apple iPhone 3G to be used on its 17 circle 2G network. Hutch and Vodafone Merger Page 2

Vodafone Group plc is a global telecommunications company headquartered in Newbury, United Kingdom. It is the world's largest mobile telecommunications company measured by revenues and the world's secondlargest measured by subscribers (behind China Mobile), with around 332 million proportionate subscribers as of 30 September 2010. It operates networks in over 30 countries and has partner networks in over 40 additional countries. It owns 45% of Verizon Wireless, the largest mobile telecommunications company in the United States measured by subscribers.

The name Vodafone comes from voice data fone, chosen by the company to "reflect the provision of voice and data services over mobile phones". Its primary listing is on the London Stock Exchange and it is a constituent of the FTSE 100 Index. It had a market capitalisation of approximately £92 billion as of November 2010, making it the third largest company on the London Stock Exchange. It has a secondary listing on NASDAQ.

Founded : 1983 as Racal Telecom, independent 1991 Group : Vodafone Plc Headquarters : Berkshire, UK Key People : Vittorio Colao, CEO & Sir John Bond, Chairman Industry : Mobile Telecommunications. Presence : Equity Interest in 25 Countries & Network Partner in 42 Strength : 2,30,000 (Employees) Revenue : £ 35,478 Million(14.1% Growth) Net Income : £ 10,047 Million(10.1% Growth) EPS : 7.51 Pence Dividend Per Share(11.1% Growth) Hutch and Vodafone Merger Page 3

Hutch India is now known as Vodafone limited. Vodafone in joint collaboration with Essar group is registered as Vodafone Essar Limited. Vodafone started operations in India in 1994 when Hutchinson Telecom group acquired the cellular rights in Mumbai circle. Known as one of the ‘most respected telecom company’ and the ‘best mobile service in the country’, it has operations in 16 circles with almost 50 million customers. On February 11, 2007, Vodafone agreed to acquire the...
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