Vodafone Essar

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Vodafone Essar Limited

Type Limited

Industry Mobile telecommunications

Predecessor Hutchison Essar

Founded 1994

Headquarters Mumbai, Maharashtra, India

Mobile networks,
Products
Telecom services, Etc.

Vodafone Group (67%)

Owner(s)
Essar Group (33%)

Employees 10,000 – March 31, 2009[1]

Website Vodafone India

Vodafone Essar, usually referred to simply as VODAFONE, is a cellular operator in India that
covers 23 telecom circles in India. It was formerly known as Hutchison Essar. It is based in
Mumbai.[2] Vodafone Essar is the Indian subsidiary of Vodafone Group 67% and Essar Group
33%. It is the second largest mobile phone operator in terms of revenue behind Bharti Airtel, and
third largest in terms of customers.[3] The company now has operations across the country with
over 113.77 million customers.
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.[4] The transaction closed on May 8, 2007. 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.
Vodafone Essar will launch third-generation (3G) services in the country in the January-March
quarter of 2011 and plans to spend up to $500 million within two years on its 3G networks. [5]

Contents
[hide]
• 1 Previous brands
• 2 Growth of Hutchison Essar (1992-2009)
• 3 3G
• 4 Subscriber Base
• 5 See also
• 6 References
• 7 External links

[edit] Previous brands

Initially, around 1995, the company services were branded Max Touch¸ renamed to Orange in
2000. In December 2006, Hutchison Essar re-launched the "Hutch" brand nationwide,
consolidating its services under a single identity.
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.[6]
On September 20, 2007 Hutch became Vodafone. Vodafone Essar spent somewhere in the
region of Rs. 250 crores on this high-profile brand transition[citation needed]. Cheap cell phones were
also launched simultaneously in the Indian market under the Vodafone brand. The company
planned to launch co-branded handsets sourced from global vendors.
A popular daily[which?] quoted a Vodafone Essar director[who?] 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[year needed], Vodafone
penned a global low-cost handset procurement deal with ZTE.
[edit] Growth of Hutchison Essar (1992-2009)
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. In the same year, the company
entered into an agreement with NTT DoCoMo to launch i-mode mobile Internet service in India.
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
A 'You and I' print advertisement of Hutch featuring Cheeka (dog)
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.
2009: Vodafone launched Recharge Online
2009: Vodafone Essar - 1st Indian Telecom operator to receive the Payment Card Industry
Security Standard (PCI DSS) certification for its Mumbai operations and launches unlimited
SMS offer in Mumbai.[7]
2010: Vodafone emerged as the most admired marketer in India. 2010: Vodafone crossed 100
million subscribers in India[8]
2010: Vodafone picks Nokia Siemens, Ericsson as 3G partners[9]
[edit] 3G
Vodafone Essar, India's third-largest mobile carrier, will launch third-generation (3G) services in
the country in the January-March quarter of 2011 and plans to spend up to $500 million within
two years on its 3G networks. Vodafone Essar won 3G licences in nine of 22 telecom zones for
Rs. 11617.86 million, and has spent the second highest amount in the May 2010 auction. The
circles where Vodafone will provide 3G services are Delhi, Gujarat, Haryana, Kolkata,
Maharashtra, Mumbai, Tamil Nadu, Uttar Pradesh (East) and West Bengal. The company named
Nokia Siemens Networks and Ericsson as its 3G equipment suppliers. [10].
[edit] Subscriber Base
Subscriber Data for May 2010
Mumbai Vodafone Essar 5,223,050
Delhi Vodafone Essar 5,416,687
Kolkata Vodafone Essar 3,657,252
Chennai Vodafone Essar 1,815,133
Gujarat Vodafone Essar 11,304,719
A.P. Vodafone Essar 6,175,850
Karnatka Vodafone Essar 5,405,997
Punjab Vodafone Essar 3,246,338
Haryana Vodafone Essar 3,056,743
U.P.(E) Vodafone Essar 10,781,644
Rajasthan Vodafone Essar 7,634,793
UP (W) Vodafone Essar 6,769,802
W B Vodafone Essar 7,647,809
Maharashtra Vodafone Essar 7,580,180
T.N. Vodafone Essar 7,465,390
Kerala Vodafone Essar 4,357,308
Orissa Vodafone Essar 1,212,187
Assam Vodafone Essar 890,226
North East Vodafone Essar 553,482
MP Vodafone Essar 2,048,312
Bihar Vodafone Essar 3,664,639
HP Vodafone Essar 197,440
J & K Vodafone Essar 242,387
Total Vodafone Essar 106,347,368

The total is Vodafone Essar = 106,347,368 subscribers i.e. 23.94% of the total 444,295,711
subscribers.
Source = http://coai.in/
[edit] See also
• Vodafone
• Vodafone market share
• Symbian
[edit] References
1. ^ Battelle, John. "Vodafone in India Employee Database". Vodafone. 31 March 2009.
2. ^ "Vodafone Essar Ltd: Vodafone India — Mobile Communications worldwide". Vodafone.in.
2009-03-31. http://www.vodafone.in/vodafone/Footer/pages/aboutus.aspx. Retrieved 2009-05-
01.
3. ^ "Vodafone’s India revenues rise despite tariff war"
4. ^ "/ Companies / Telecoms — Investors welcome Vodafone deal". Ft.com.
http://www.ft.com/cms/s/7eaef850-b9e3-11db-89c8-0000779e2340.html. Retrieved 2009-05-01.
5. ^ http://economictimes.indiatimes.com/news/news-by-industry/telecom/Vodafone-to-launch-
India-3G-services-in-Q1-2011/articleshow/6786557.cms
 6. ^ "Hutch is re-branded as Vodafone". The Hindu.
http://www.thehindubusinessline.com/catalyst/2007/10/04/stories/2007100450010100.htm.
Retrieved October 04, 2007.
7. ^ "Vodafone launches unlimited SMS offer in Mumbai". liveMint.
http://www.livemint.com/2009/12/29234100/Vodafone-launches-unlimited-SM.html?d=2.
Retrieved Dec 29 2009.
8. ^ "Vodafone rings in 100 mn subscribers in India: Rediff.com Business". Business.rediff.com.
2010-04-08. http://business.rediff.com/report/2010/apr/08/tech-vodafone-has-100-mn-
subscribers-in-india.htm. Retrieved 2010-07-16.
9. ^ "Vodafone picks Nokia Siemens, Ericsson as 3G partners: Rediff.com Business".
Business.rediff.com. http://business.rediff.com/report/2010/oct/13/tech-vodafone-picks-nokia-
siemens-ericsson-as-3g-partners.htm. Retrieved 2010-10-13.
10.^ Special Correspondent (2010-10-21). "Business News : Vodafone Essar to launch 3G by early
2011". The Hindu. http://www.thehindu.com/business/article840791.ece. Retrieved 2010-11-18.

[edit] External links

Companies portal

• Official site of Vodafone India

• Official site of the Vodafone Group
• Vodafone Recharge Online
• BlackBerry from Vodafone
• Hutch/Vodafone's Creative Television Commercials
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Annual Revenue: £41.02 billion GBP (2009) · Employees: 79,000 (2009) · Stock
Symbols: LSE: VOD, NASDAQ: VOD · Website: Vodafone.com
Further information: Vodafone market share

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