Feeds

Vodafone and DoCoMo bundle into India

Big bucks into a big market

The Essential Guide to IT Transformation

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. ®

Build a business case: developing custom apps

More from The Register

next story
Scotland's BIG question: Will independence cost me my broadband?
They can take our lives, but they'll never take our SPECTRUM
Trying to sell your house? It'd better have KILLER mobile coverage
More NB than transport links to next-gen buyers - study
iWallet: No BONKING PLEASE, we're Apple
BLE-ding iPhones, not NFC bonkers, will drive trend - marketeers
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
Speak your brains on SIGNAL-FREE mobile comms firm here
Is goTenna tech a goer? Time to grill CEO, CTO
NBN Co adds apartments to FTTP rollout
Commercial trial locations to go live in September
Samsung Z Tizen OS mobe is post-phoned – this time for good?
Russian launch for Sammy's non-droid knocked back
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Maximize storage efficiency across the enterprise
The HP StoreOnce backup solution offers highly flexible, centrally managed, and highly efficient data protection for any enterprise.