British giant Vodafone and Indian conglomerate Essar group reached an agreement on Thursday for jointly running India's fourth largest mobile firm -- Hutch-Essar, which would be rechristened Vodafone Essar.
The proposals, to be based on the recommendations of the Shome panel, are likely to be introduced in the Finance Bill to be presented by Finance Minister P Chidambaram in the Budget for 2012-13.
Vodafone Group Plc won the Indian cabinet's approval for its $1.6 billion deal to buy out minority partners in its unit in the country, Information and Broadcasting Minister Manish Tewari said on Thursday.
The company, part of the UK-based Vodafone Group, had posted an adjusted operating profit of GBP 60 million (about Rs 503 crore) in the year-ago period, it said.
From its lows this month, the stock of Bharti Airtel is up 14 per cent. The gains for the telco have come on the back of expectations that market share consolidation, tariff hike and lower capex should boost margins and profits. While the company is a key player in the Indian market, it also has a leadership position in major markets of Africa.
While a group of officials believed a case against the two telecom companies was made out as they were only beneficiaries of the laid down policy, another team of officials involved in decision-making differed, official sources said on Monday.
UK telecom giant Vodafone has offloaded its 5.6 per cent direct stake in India's mobile leader Bharti Airtel to promoter Sunil Mittal's group for $1.6 billion, coinciding its acquisition of controlling stake in Hutch-Essar.
In his complaint, Delhi resident Rajender Yadav had alleged unfair trade practice by Vodafone for deducting Rs 50 from his account towards activating 'hello' tune service on his number without his consent.
GSM operators on Monday stepped up pressure against the regulator's 2G recommendations, with Idea Cellular writing to the DoT and officials of Vodafone Essar calling on TRAI chief J S Sarma to convey their objections to the spectrum proposals.
Vodafone India MD & CEO Marten Pieters, 59, blames regulation and the spectrum policy for the telecom industry's troubles.
Officials in the know indicate the Central Board of Direct Taxes might come out with a notification in due course, saying that cases that have reached finality would not be touched.
Vodafone, which is led by India-origin CEO Arun Sarin, plans to hire 330 retail staff for its stores to sell "data services such as music products and mobile broadband". "A further 130 people will be taken on in sales roles in its enterprise business and 30 in its online sales and customer service division," the report stated.
A presentation by the CBI to a Joint Parliamentary Committee last week said the decision led to a loss of Rs 508 crore to the exchequer.
Vodafone-Essar, the leading GSM operator is raising around $500 million (Rs 2,000 crore) through overseas borrowing. This is the first fund raising by the telecom major after British telecom major Vodafone acquired a majority stake.
A senior official of the department said the papers were prepared after serious deliberations, and the I-T department's admission on these measures at this juncture could be significant pointers to achieving the direct tax collection target for 2012-13.
Vodafone, which has equity interests in 25 countries besides India where it bought controlling stake in Hutchison Essar early this year, said its capital expenditure on fixed assets this fiscal would be around 4.7-5.1 billion.
Britain's Vodafone, which acquired controlling stake in mobile firm Hutch-Essar, on Tuesday said it will transfer its 5.6 per cent stake in Bharti Airtel back to the Indian mobile leader by November next year.
The number of dematerialised (demat) accounts required to hold shares and other securities in electronic format rose by 3.1 million in April, bringing the total tally to a fresh record of 154.5 million. Since December last year, the new additions have consistently remained above the 3 trillion mark, a sign that the stock markets continue to attract new investors despite a spike in volatility.
The British telecom major on Tuesday moved the dispute resolution panel, seeking relief from an order sent by the I-T department in December.
As Vodafone started examining the books of Hutchison Essar, its existing partner Bharti Airtel on Tuesday said it has not been approached by anyone to buyout British telecom firm's stake in the company.
Numbers could be classified further into (140) marketing and (160 or 161) for service calls to easily identify the purpose of the call in the future.
Sarin said Hutchison obviously had its own compulsions of not being able to continue in India.
The Foreign Investment Promotion Board will take up on March 20, the proposal of UK mobile giant Vodafone to acquire 52 per cent direct stake in Hutchison-Essar from Hong Kong-based Hutchison Telecom based on an enterprise value of $18.8 billion.
A bench headed by Justice S B Sinha refused to hear the Vodafone plea that had challenged the Bombay high court judgment, which on December 3 last year had dismissed a petition by Vodafone International Holdings BV, contesting a showcause notice by the I-T department. Vodafone, Netherlands-based company, had bought a 67 per cent stake in Hutchison Essar from Hutchison Telecom International in February 2007 for $11.2 billion.
Even after investing almost Rs 6,000 crore, Ajay Piramal, chairman of the company, insists it is a short-term investment.
Vodafone India said on Friday it would launch fourth-generation (4G) mobile phone services in the country by the end of the year.
4G services typically make it much faster than 3G services to surf the web on mobile phones, tablets and laptops.
A report in The Observer on Sunday said the bidding war for telecom firm Hutchison Essar will erupt again, with Britain's Vodafone preparing to table a fresh offer that would value the target at up to 19 billion dollars.
MphasiS, which recently came under the EDS fold, will be executing $250 million worth of application development and maintenance work for Vodafone over five years.
India's income tax department today said it would scrutinise more than a dozen cases of offshore mergers and acquisitions in which the deal results in an ultimate change of ownership of Indian firms. The latest move by the tax department comes in the background of a favourable ruling from the Bombay High Court yesterday in a case filed by Vodafone International Holding BV.
Ahead of its Rs 18,000 crore further public offer (FPO), Vodafone Idea on Monday said it expects to roll out 5G services in select pockets within 6-9 months of raising fresh capital. Its chief executive Akshaya Moondra said rollout of the modern 5G telecom services is one of the objectives of raising the capital from the public and once the funding comes, it will start work on the rollout. "With this round of funding, we believe we will be able to (come) back to participate in the industry growth which has not been possible," he said.
Mobile phone giant Vodafone cut short a four-year shirt sponsorship deal with Manchester United on Wednesday and switched its allegiance to European's premier club competition, the Champions League.
Fierce competition and rising capex will put pressure on most operators in 2017.
The price offered is about a quarter of the value set by the govt in an auction that was scheduled for March 2013 but never took place.
The second largest telecom operator said auction would avoid possible legal disputes and pave the way for licence extensions.
Today is the last date for submitting the applications and companies have the option to withdraw them by January 27.
The submission was made before additional sessions judge Hardeep Kaur, who extended the judicial custody of all the six accused till March 1.
Apple's iPhone, the touch screen handset that acquired a cult status in the United States and other Western countries, will be available to Indian mobile users through private telecom operators Bharti Airtel and Vodafone Essar from August 22, giving competitors like Nokia, Samsung and others a run for their money.
Vodafone appointed to its board on Thursday a former group managing director at HTIL's parent company Hutchison Whampoa.
