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Old 19th December 2006, 12:46   #1
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Default Hutch on the bidding block - Reliance to pick up?

Hi Guys

Just read that Hutch in India is on the bidding block with Reliance Comms (ADAG) and Maxis Malaysia being the front-runners.

Is this the culmination of Anil Ambani's threat to Qualcomm that Reliance will go the GSM way?
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Old 19th December 2006, 13:18   #2
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Reliance was planning for the GSM route from sometime according to some. And with Hutch under their belt, it will make things their way.

And does this mean that Hutch too is nearing to an end in India?
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Old 19th December 2006, 13:42   #3
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Originally Posted by speedzak View Post

And does this mean that Hutch too is nearing to an end in India?
Hucth are bleeding big time in europe as 3G take up has been limp. They need to pump in more capital to boost its appeal.
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Old 19th December 2006, 14:01   #4
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Hucth are bleeding big time in europe as 3G take up has been limp. They need to pump in more capital to boost its appeal.
Actually Hutchison has been famous for building up a business only to sell it off and realize the value.

The same has been done in India - they built up a business, created a brand, created a nationwide presence and now they're ready to sell out. Build, Operatre and Encash is their mantra.

The issue is a bit more complicated than it seems, because what you see as 'Hutch' in India is a group of 3 businesses. Orange in Mumbai is Hutchison. All the Essar circles that were 'acquired' (including Delhi, Punjab, etc) are co-owned by Hutch and Essar. All the 3rd operator licenses bought later and the acquisitions like BPL Mobile are all Essar.

There's been a tussle between Hutchison and Essar with the latter buying up 3rd licenses and other operators in a bid to take control of the group.

Remains to be seen if Essar will remain in the equation when Hutch sells out.
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Old 19th December 2006, 14:23   #5
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Another factor is that after buying Hutch Reliance will become the undisputed #1 in India with nearly 50 million customers. Airtel would be left behind by a large margin. Reliance also gets a huge toe-hold in the GSM & high-end/corporate consumer markets which I'm sure they would be really looking out for.

Last edited by iraghava : 19th December 2006 at 14:25.
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Old 19th December 2006, 15:03   #6
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i had seen posters of ril gsm services all over patna when i was there in Jan 2006. So relicomm does have a gsm branch as well?

manson.
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Old 19th December 2006, 15:11   #7
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i had seen posters of ril gsm services all over patna when i was there in Jan 2006. So relicomm does have a gsm branch as well?
Yes, they already have GSM operations is some circles.
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Old 15th March 2007, 20:30   #8
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The little Pug that made mobile company Hutch's television ad one of the most successful campaigns of our times will follow the new master Vodafone, which has acquired Hutchison Telecom's stake in the venture.

The dog will follow Vodafone's network too (in advertisements)," Vodafone CEO Arun Sarin said when asked if the famous Pug will remain with the company


Source:
Hutch's Pug to follow Vodafone
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Old 16th March 2007, 19:27   #9
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I am sure the new ad will be like "the pug finds a new home" which is red - vodafone red. Perhaps with coming of Vodafone we may see some new technologies / prices dropping further.
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Old 17th March 2007, 11:32   #10
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Perhaps with coming of Vodafone we may see some new technologies / prices dropping further.

You cant be serious - we have the cheapest rates in the world. It cant get cheaper than this.

The entry of Vodafone and other biggies could signal a change in this trend, with a slow drive up on the price front. They wont spend their $15 Billion in charity - that you can be sure of.

As for new technologies, some of the stuff we've done in India are only in the process of being implemented in other, more 'mature' markets. The lack of 3G and content based around that technology is probably the only 'lacking' we have, but given the costs of 3G deployment and the returns from the same its not likely that we go down that road soon.

IMHO Vodafone or other biggies can learn quite a few things about cost control from the operations in India. The Indian operators are probably the most cost-effective in the world - the things we manage on a shoestring budget are impressive.
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Old 17th March 2007, 12:24   #11
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well vodafone already has celcom in malaysia (at least according to the ads on malaysia airlines during their in flight programs) and 3G is the standard there. How much more expensive will it be to implement it in india?
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Old 17th March 2007, 12:38   #12
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Originally Posted by CaliAtenza View Post
well vodafone already has celcom in malaysia (at least according to the ads on malaysia airlines during their in flight programs) and 3G is the standard there. How much more expensive will it be to implement it in india?
Cellcom in Malaysia is Telecom Malaysia's Mobile arm. Telecom Malaysia earlier had a mobile arm called TM Touch, but they bought Cellcom and ditched the TM Touch brand.

It is not owned by Vodafone.

3G is not 'standard' in Malaysia. The Govt Auctioned 3G licenses over a year ago and only two firms have got the licenses - one of them is not even in the mobile business, while the 2nd one with the license is Time Telecom which sold its mobile business to Maxis over 2 years ago. Time has been sitting on its 3G license for over a year without rolling out services - implementing the new technology is quite different from acquiring a license.

Implementation of 3G involving buying a 3G license in most countries - the governments have found one more way to make cash. Thats why its 'expensive'. Add to it the fact that 3G is WCDMA over GSM - there are two technologies working together here so its not a simple matter of just buying handsets.

Last edited by Steeroid : 17th March 2007 at 12:45.
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