Vodafone acquires Hutch

It was perhaps the most talked about deal in the country. Vodafone, the world’s largest telecom company, taking over Hutchison Telecom International’s 67 per cent stake in Hutch Essar jointventure for $11.1 billion makes it the king-sized deal of the year. For Arun Sarin, Chief Executive, Vodafone, it was a dream come true. Getting a foothold in India—the world’s fastest growing mobile telecom market—was something Vodafone needed to do to consolidate its position in Asia. Recently, Sarin (53) said Vodafone Essar plans to increase its market share from the current 17 per cent to around 25 per cent over the next five years. Such growth plans depend on the launch of services in other regions of the country for which additional spectrum is yet to be allocated. It is to be seen whether Vodafone’s billion-dollar gamble pays off as the average revenue per user (of mobile phones) in India is lowest in the region.