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Battle for Hutch December 29, 2006

Posted by Vijay in Business, Issues, Mobile.

The bidding war is on for Hutch. Vodaphone,Essar are bidding $17 Billion and $11 Billion respectively to buy out Hutchinson Telecom’s stake. Now Reliance is in the fray as well.

I still remember in 1996/97 when Mobile services started in India,my colleauges in the US,HK etc used to make fun of the lack of mobile population in India. I still remember a top executive at one of the Singapore carriers telling me that India will never be a “volume” market because Mobiles were the purview of the upper middle class.

Well…how things have changed.. we are adding millions of mobile users every month, the mobile phone is now used by everyone from the high-flying executive to the guy selling vegetables on the street. The valuations of the Mobile companies is unbelievable.

The eventual winner in all this – The Indian customer.

As far as Hutch is concerned.. I hope the Network will still follow the customer. I have heard that the “dog” tends to stray a bit. (this will make no sense to someone who hasn’t seen the Hutch Ad).



1. praneshachar - December 30, 2006

yes itis true nobody considered india a potential market for mobile
it is a fact that when introuduced the sets were very costly and outgoing calls were charged at Rs16/ a minute or so and incoming calls were charged at Rs.8/ a minute or so. but astonishngly even at this rate i have seen business people saving lot of money on STDs etc. and their phone bills were drastically reduced.
what a change now there is a virtal war between the service provders and as rightly said by vijay
“The eventual winner in all this — the indian customer”
another impact the land line tariff too has come down drastically as
mobile marke in india in last 5 years has swept the market
rich to poor everyone is a potential customer today package and handsets are available at all ranges

2. Veena Shivanna - January 2, 2007

Nice post .. Are you doing some research on communication/media markets ? Lot of post on BSNL, Airtel, Hutch ?
I noticed yesterday a VOVLO bus with an Ad.. it was about Bharti starting its insurance.
Please do write a post about linking your old business(entity) and broadning your wings to newer market.
Its like how a company selling vegetable oils is now among top IT serveices in the IT industry. no matter what the old products shines with the same glamour, the newer ones may soar or die 🙂

3. M O H A N - January 4, 2007

What the janta do not know about this vegetable oils company is that it still sells baby care products ( do they? really?), tubelights ( myself types, latest) which dont last more than a year, Shoe hides or soles or is it soules ;-), vegge oil is last but not the least including bathing cakes… the list is endless. What is ensured for this company is its diversification. At the end its jack of all trade!!

Guys, do not expect quality in the near run from any of the multi headed behemoths – they are only after your money. Use the best service provider in the class ( hope there is one atleast!)


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