Vodafone India is Born
Vodafone’s bid of $19 Billion for Hutch-Essar [EV] was accepted by HTIL. It is reliably learnt that Reliance Communications bid was at $17 Billion. Vodafone however has few hurdles and the biggest hurdle is behind them as Essar groups Shashi Ruia said that he is delighted by the value created by Vodafone 
Essar may have to shed some stake or Vodafone India must go for an IPO in India because Essar group currently holds 21% stake in Hutch Essar through an overseas company. Also Vodafone has to dump its 10% stake in Bharti-Airtel Ltd and pay a fine to get past the Non-Compete clause they signed with Mr. Sunil Mittal.
The deal is in the overall interest of the Indian Telecom Industry as we will now have 4 players with PAN India presence [ Airtel, BSNL, Hutch / Vodafone India and Reliance Communications] and 2 more players [Idea cellular and Aircel ] who will make it there in the next few quarters. Had Reliance won the bid, then it would get 50% plus market share in few circles and that would have wiped away competition. It is also good that Reliance Telecom will now aggressively spend in building a 3G GSM network
It is understood that Arun Sarin and Asim Ghosh both share a good rapport and thus we are unlikelyto see a shakeup or reorganization as Asim Ghosh is likely to enjoy the confidence of Arun Sarin.
Congratulations to Mr.Sarin. We welcome Vodafone to India.
Tags: Mobile India, Vodafone, Hutch, Telecom India
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[...] ADAG managed Reliance Communications is back on Plan – A to rollout GSM services across India through its subsidiary, Reliance Telecom reports DNA. Immediately after Vodafone India was born, I had said, Reliance Telecom will get aggressive on its GSM plans. [...]