Category: Operators

Hutchison Essar Ltd, India’s fourth largest mobile-phone company, got a $140mn to expand its phone network in India.
The deal is the first syndicated loan for Hutchison Essar, a joint venture between Hutchison Whampoa Ltd.’s Hong Kong-based Hutchison Telecommunications International Ltd. and the Essar Group in Mumbai.

The deal was arranged by Bank of America Securities LLC, N Bayerische Hypo-UND Vereinsbank AG, Chinatrust Commercial Bank, Rabobank NA and Raiffeisen Zentralbank Oesterreich AG.
   

Hong Kong’s Hutchison has taken a strategic decision to redesign the Hutch brand, in the run-up to the Hutch-Essar IPO.

Hutchison Essar will unveil Hutch with its new look across 13 circles by late-November. As the company’s existing Orange and Hutch brands have a common colour, “The redesigned Hutch umbrella brand will have a definite colour variation,” Hutchison officials told ET.

There’s a tight lid on the new brand design and colour specifics. But it’s understood that the world’s top brand consultancy firm, the London-based Wolff Olins, may be involved in redesigning Hutch. Wolff Olins is the original creator of Orange.

“It’s imperative that Hutchison Essar evolves a single and unique brand identity in India, instead of its twin-brand image. The entry of the world’s biggest GSM player into India is likely to expedite unveiling of the new look of Hutch and put the company’s brand unification plans on fast track,” sources said.

Significantly, Hutchison’s decision to introduce new colour and design to Hutch is in the aftermath of the recent Orange-Hutch tussle over alleged trademark and copyright violations by Hutchison. During the legal battle in Delhi High Court, the Orange Group had alleged that Hutch had created images which were based on Orange’s guidelines.

Though the Orange-Hutch legal duel is over, there’s a feeling that Hutch and Orange brands are similar, especially as both use the orange colour. “As both brands share a similar philosophy, there’s little economic sense in Hutch-Essar managing two separate brands in India,” said sources .

In fact, Hutchison Essar expects a common umbrella brand to trigger media efficiencies, in which the company won’t need separate adaptation strategies for both brands. Once DoT clears Hutch-Essar’s 100% acquisition of the BPL Mobile circles, the new- look Hutch will be unveiled in Maharashtra, Tamil Nadu and Kerala.

 via [economictimes]

Vodafone Group Plc, the world’s No.1 cellular service provider, has picked up a 10% stake in Bharti Tele-Ventures Ltd. for Rs67bn or US$1.2bn. Vodafone Mauritius Ltd. has purchased shares in Bharti Enterprise Pvt. Ltd. (the unlisted holding company), which gives the British cellular service major a beneficial stake of 4.4% in Bharti Tele-Ventures.

The investment from India’s leading GSM-based telecom operator by the British cellular major comes more than a week after the Cabinet cleared the proposed hike in Foreign Direct Investment (FDI) in telecom, from 49% to 74%.

In addition, Vodafone, through Vodafone International Holdings BV, has also picked up 5.65% stake from Warburg Pincus, thereby taking the total beneficial interest in Bharti Tele-Ventures to around 10%.

The above transactions do not make any change in the direct shareholding of Bharti Tele-Ventures. Bharti Enterprises maintains a controlling interest of 45.9% in Bharti Tele-Ventures through its subsidiary, Bharti Telecom Ltd. With the final sale of its stake, Warburg Pincus has now completely exited its position in Bharti Tele-Ventures. Bharti Enterprises owns 68% in Bharti Telecom, which in turn holds 45% stake in the listed Bharti Tele-Ventures.

Commenting on the occasion, Sunil Bharti Mittal, Chairman & Group Managing Director, Bharti Enterprises, said, "We are delighted that Vodafone has made a call on the Indian telecom sector and has chosen Bharti Tele-Ventures Ltd. to be the vehicle to develop its continued interest in the Asian region. Today, when Bharti stands on the threshold of being an Asian telecom powerhouse, it has tied up with Vodafone to take the company to the next level and to support Bharti in achieving its vision of making Airtel the most admired brand in India".

At 12:58 p.m., shares of Bharti Tele-Ventures were trading at Rs327, up Rs15 or 4.8%, over the previous close. Earlier, the stock had touched a high of Rs330.5 and a low of Rs311. Around 1.62mn shares of Bharti Tele-Ventures have changed hands on BSE.

Tata Indicom has launched a new scheme, Non Stop Mobile, under which the validity of a pre-paid connection is extended for two years upon a single recharge, thus freeing mobile subscribers from monthly recharges. The service also offers free roaming in over 1500 locations in the country.

There is no monthly commitment to recharge. Above all, the recharge coupons are available from Rs.50 with 100 percent talk time.

Some noteworthy figures from the article.

At present Tata Indicom ‘True Paid’ launched in January this year has two million subscribers. However, they are targeting around 10 million subscriber base by March 2006…

As on September 30, the company’s subscriber base stood at 5.6 million spread across 1500 towns.

 

 

Bangalore: Airtel, a leading mobile services provider in the country, would invest Rs 400 crores during the year 2005-06 as part of its expansion plan in Karnataka, Company Executive Director (Southern Region-Mobility) Atul Bindal said today.

Talking to newsmen here, he said that with 1.5 million customers in the state, Karnataka was the second largest Circle in Bharti Televentures’ network which is playing a pioneering role in increasing mobile penetration in the country.

Mr Bindal said that with the projected expansion plan, the company by end of the year planning to reach out to approximately 45 per cent of the population in the state with a robust network that will span about 730 towns. It was intended to set up 600 additional cell sites across the state taking the total number to 1800 to ensure better reach than competitors.

The idea was to expand mobile network in rural areas and drive segmented applications and value added services in urban and semi urban markets, he said and added that the Company see lot of potential for development in Northern Districts like Gulbarga and Hubli.

Bharati Televentures COO Deepak Mehrotra said that the Company has adopted a three prong strategy–innovation, quality and outsourcing, to achieve its planned development. Bharati has recently signed agreements to outsource its call center operations to some of the best international BPOs. The agreement with Hinduja TMT, IBM Daksh, Mphasis and TeleTech services would enhance quality of customer service delivery to its customers across the country, he added.

Mr Mehrotra said that Airtel has moved towards setting up of a Future Factory in Bangalore fully dedicated to explore innovation and development of path-breaking applications for mobile customers across the country. Customers in cities like Bangalore, Delhi and Mumbai were looking towards mobile commerce and the Future Factory here would take up development of drive applications that use mobile phone as a payment instrument for ticketing, money transfer and other commerce transactions.

He said under rural programme the company would focus on developing applications to make mobile telephone more relevant to the segment.

New Delhi, Oct 4.(PTI): More than 30 million cell phone users in the country can watch the Johnnie Walker Super series cricket live when the tournament starts on October 5.

Reliance, BSNL, IDEA, Aircel, Tata Indicom, BPL, Spice, MTNL subscribers can watch the cricket series on their GPRS-enabled cell phones thanks to IMImobiles.

ICC has given the rights to three service providers in India — Airtel, Hutch and IMImobile.

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