Vodafone Essar
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| Type | Limited |
|---|---|
| Founded | 1994 as of Hutchison Essar |
| Headquarters | Mumbai, Maharastra, India |
| Industry | Telecom |
| Products | Mobile Telecommunication operator |
| Website | Vodafone India |
Vodafone Essar, previously Hutchison Essar is a cellular operator in India that covers 23 telecom circles in India[1] . Despite the official name being Vodafone Essar, its products are simply branded Vodafone. It offers both prepaid and postpaid GSM cellular phone coverage throughout India with good presence in the metros.
Vodafone Essar provides 2.75G services based on 900 MHz and 1800 MHz digital GSM technology, offering voice and data services in 23 of the country's 23 licence areas. It is among the top three GSM mobile operators of India.
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[edit] Ownership
Vodafone Essar is owned by Vodafone 52%, Essar Group,33% and other Indian nationals, 15%.
On February 11, 2007, Vodafone agreed to acquire the controlling interest of 67% held by Li Ka Shing Holdings in Hutch-Essar for US$11.1 billion, pipping Reliance Communications, Hinduja Group, and Essar Group, which is the owner of the remaining 33%. The whole company was valued at USD 18.8 billion.[2] . The transaction closed on May 8, 2007.
[edit] Previous brands
In December 2006, Hutch Essar re-launched the "Hutch" brand nationwide, consolidating its services under a single identity. The Company entered into agreement with NTT DoCoMo to launch i-mode mobile Internet service in India during 2007.
The company used to be named Hutchison Essar, reflecting the name of its previous owner, Hutchison. However, the brand was marketed as Hutch. After getting the necessary government approvals with regards to the acquisition of a majority by the Vodafone Group, the company was rebranded as Vodafone Essar. The marketing brand was officially changed to Vodafone on 20 September 2007.
On September 20, 2007 Hutch becomes Vodafone in one of the biggest brand transition exercises in recent times.
Vodafone Essar is spending somewhere in the region of Rs 250 crores on this high-profile transition being unveiled today.Along with the transition, cheap cell phones have been launched in the Indian market under the Vodafone brand. The company also plans to launch co-branded handsets sourced from global vendors as well.
A popular daily quoted a Vodafone Essar director as saying that "the objective is to leverage Vodafone Group's global scale in bringing millions of low-cost handsets from across-the-world into India."
Incidentally, China's ZTE, which is looking to set-up a manufacturing unit in the country, is expected to provide several Vodafone handsets in India. Earlier this year, Vodafone penned a global low-cost handset procurement deal with ZTE.
[edit] Apple iPhone 3G
Vodafone launched the Apple iPhone 3G in India. It is available from 22nd of August 2008.
[edit] Growth of Hutchison Essar (1992-2005)
In 1992 Hutchison Whampoa and its Indian business partner established a company that in 1994 was awarded a licence to provide mobile telecommunications services in Mumbai (formerly Bombay) and launched commercial service as Hutchison Max in November 1995. Analjit Singh of Max still holds 12% in company.
In Delhi, UP (E), Rajasthan and Haryana, ESSAR was the major partner. But later Hutch took the majority Stake.
By the time of Hutchison Telecom's Initial Public Offering in 2004, Hutchison Whampoa had acquired interests in six mobile telecommunications operators providing service in 13 of India's 23 licence areas and following the completion of the acquisition of BPL that number increased to 16. In 2006, it announced the acquisition of a company (Essar Spacetel — A subsidiary of Essar Group) that held licence applications for the seven remaining licence areas.
In a country growing as fast as India, a strategic and well managed business plan is critical to success. Initially, the company grew its business in the largest wireless markets in India — in cities like Mumbai, Delhi and Kolkata. In these densely populated urban areas it was able to establish a robust network, well known brand and large distribution network -all vital to long-term success in India. Then it also targeted business users and high-end post-paid customers which helped Hutchison Essar to consistently generate a higher Average Revenue Per User ("ARPU") than its competitors. By adopting this focused growth plan, it was able to establish leading positions in India's largest markets providing the resources to expand its footprint nationwide.
In February 2007, Hutchison Telecom announced that it had entered into a binding agreement with a subsidiary of Vodafone Group Plc to sell its 67% direct and indirect equity and loan interests in Hutchison Essar Limited for a total cash consideration (before costs, expenses and interests) of approximately US$11.1 billion or HK$87 billion.
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 licences to operate GSM services in Karnataka, Andhra Pradesh and Chennai
2003: Acquired AirCel Digilink (ADIL — ESSAR Subsidiary) which operated in Rajastan, 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 West' and 'West Bengal'
2005: Acquired BPL (Except Mumbai)- 3 Circles, another mobile service provider in India
2008: Vodafone acquired the Licence in remaining 7 circles and has started its pending operations in Madhya Pradesh/Chhattisgarh with its headquarters at Malviya Nagar,Bhopal as well as in Orissa, Assam, North East and Bihar
2008: Vodafone launched the Apple iPhone 3G to be used on its 17 circle 2.75G network.
Hutch was often praised for its award winning advertisements which all follow a clean, minimalist look. A recurrent theme is that its message Hello stands out visibly though it uses only white letters on red background. Another recent successful ad campaign in 2003 featured a pug named Cheeka following a boy around in unlikely places, with the tagline, Wherever you go, our network follows. The simple yet powerful advertisement campaigns won it many admirers.
[edit] Subscriber Base
The Vodafone subscriber base according to COAI — Cellular Operator Association of India as of Nov 2008 was:
- City/Circle Jan'2009
- Mumbai 4115671
- Delhi 3741037
- Kolkata 2481872
- Chennai 1472340
- Gujarat 7241167
- A.P. 3430016
- Karnatka 3333207
- Punjab 1944733
- Haryana 1878339
- U.P.(E) 5589567
- Rajasthan 4343407
- UP (W) 3825035
- West Bengal 4000994
- Maharashtra 3833719
- Tamil Nadu 4509341
- Kerala 2704412
- Madhya Pradesh 255482
- Assam 45486
- North East 29814
- Orissa 50213
- Chhattisgarh 107 only
- Bihar 76349
- Himachal Pradesh 193
The total is 54,624,809 or 23.38% of the total 233,676,930 GSM mobile connections in India till September 2008.
Vodafone Essar 58,764,164 or 23.57% of total 249,349,436.
[edit] References
- ^ "Vodafone Essar Ltd: Vodafone India — Mobile Communications worldwide". Vodafone.in. 2009-03-31. http://www.vodafone.in/vodafone/Footer/pages/aboutus.aspx. Retrieved on 2009-05-01.
- ^ "/ Companies / Telecoms — Investors welcome Vodafone deal". Ft.com. http://www.ft.com/cms/s/7eaef850-b9e3-11db-89c8-0000779e2340.html. Retrieved on 2009-05-01.
[edit] External links
- Official site of Vodafone India
- Official site of the Vodafone Group
- Hutch/Vodafone's Creative Television Commercials
- Vodafone Blackout Days
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