Feeds

Vodafone and DoCoMo bundle into India

Big bucks into a big market

The Power of One Infographic

Vodafone is to spend $5bn buying out local partner Essar for control of India's second-largest operator, while DoCoMo is spending $175m to improve 3G coverage in the country.

Vodafone already owns a significant stake in Essar, having paid Hutchinson Telecommunications more than $10bn for a controlling interest back in 2007. But now Vodafone wants to take that interest right up to the limit allowed by regulations on foreign ownership, and will be spending another $5bn to do so.

The deal, which leaves Essar Group entirely out of the picture, will take Vodafone up to 75.4 per cent ownership – just over the 74 per cent permitted under Indian law. But Vodafone reckons it can flog off that 1.4 per cent holding to someone local, and is happy to do so in order to end up with the maximum ownership it is allowed.

While officially called "Vodafone Essar", the network has never used that branding locally, being known as "Vodafone" since changing its name from "Hutch Essar" following the initial investment, so end users shouldn't see any change.

But Vodafone isn't the only company getting excited about India, with Japanese operator NTT DoCoMo today announcing that it's sinking $175m into Tata Teleservices, in which it holds 26 per cent. The money won't extend that ownership, as it is in response to a rights offering by the operator, which wants more cash to extend its 3G coverage. But it is indicative of the confidence the world has in the expansion of the mobile industry in India. ®

The Essential Guide to IT Transformation

More from The Register

next story
Yorkshire cops fail to grasp principle behind BT Fon Wi-Fi network
'Prevent people that are passing by to hook up to your network', pleads plod
Major problems beset UK ISP filth filters: But it's OK, nobody uses them
It's almost as though pr0n was actually rather popular
Apple orders huge MOUNTAIN of 80 MILLION 'Air' iPhone 6s
Bigger, harder trouser bulges foretold for fanbois
Google Nest, ARM, Samsung pull out Thread to strangle ZigBee
But there's a flaw in Google's IP-based IoT system
US freemium mobile network eyes up Europe
FreedomPop touts 'free' calls, texts and data
'Two-speed internet' storm turns FCC.gov into zero-speed website
Deadline for comments on net neutrality shake-up extended to Friday
Oh girl, you jus' didn't: Level 3 slaps Verizon in Netflix throttle blowup
Just hook us up to more 10Gbps ports, backbone biz yells in tit-for-tat spat
Want to beat Verizon's slow Netflix? Get a VPN
Exec finds stream speed climbs when smuggled out
prev story

Whitepapers

Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.