If winters have trailed long adding to the woes of the people, never mind, the good news is the spring season is already round the corner, like 3G is going to be around us very soon. A strong player in 3G technology, Vodafone is making a foray into the active telecom market. It might add different dimensions to different stories, but the Indian telecom industry will surely leapfrog from now on.
Vodafone has already agreed to acquire 67 per cent of Hutchison–Essar Ltd., the fourth-largest telecom player in India, at a value of US$19 billion. From all accounts, it is the most vibrant news for the Indian telecom industry. As a nationalist, I feel: “It is the best news for the entire Indian IT industry and the rural telephony market for 2007.”
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Vodafone is a strong player in data communication technology. The Indian economy during the next 10 years is going to be influenced by the broadband, and Vodafone – a major player in this space – will surely help to intensify broadband penetration in the country.
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From the perspective of the telecom operators, there is going to be a big change in the industry. Not only will Hutchison–Essar have a new commander, but Bharti Telecom will also see some changes in its management. Vodafone has 10-per cent stake in Bharti Telecom and the acquisition of major share in Hutchison–Essar will pose Vodafone as the direct competition to its invested company, Bharti. But, sooner or later, this state of affairs will be rectified by Bharti. Secondly, if at all Vodafone takes a share of Hutchison, it also cannot keep the entire 100 per cent of 67 per cent under its own banner as the Indian law does not permit it. The company has to take another Indian joint venture for at least 33 per cent. It means another big name will surely be added to the entire story. Anyway, we are not going to look into the accounts to see the effect on the industry. With the Hong Kong major active in the market, India has already started enjoying cheap call rates and roaming cost. What is the next big news for the users? Is it 3G within your pocket money or something else? Just wait for the time…
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Sanjay Mohapatra
Editor
