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Vodafone Essar, usually referred to simply as Vodafone, is a cellular operatorin India that

covers 23 telecom circles in India. It was formerly known as Hutchison Essar. It is based

inMumbai.[2]Vodafone Essar is the Indian subsidiary ofVodafone Group 67% and Essar

Group 33%. It is the second largest mobile phone operator in terms of revenue behind Bharti

Airtel, and third largest in terms of customers.[3] The company now has operations across the

country with over 113.77 million customers.

On February 11, 2007,Vodafoneagreed to acquire the controlling interest of 67% held by Li Ka

Shing Holdings in Hutch-Essar for US$11.1 billion, pipping Reliance Communications, Hinduja

Group, and Essar Group, which is the owner of the remaining 33%. The whole company was

valued atUSD18.8 billion.[4]The transaction closed on May 8, 2007. Despite the official name

being Vodafone Essar, its products are simply branded Vodafone. It offers both prepaidand

postpaidGSMcellular phonecoverage throughout India with good presence in the metros.

Vodafone Essar provides2.75G services based on 900 MHz and 1800 MHz digital GSM

technology, offering voice and data services in 23 of the country's 23 licence areas. It is among

the top three GSM mobile operators of India.

Vodafone Essar will launch third-generation (3G) services in the country in the January-March

quarter of 2011 and plans to spend up to $500 million within two years on its 3G networks.

Previous brands

Initially, around 1995, the company services were branded Max Touch renamed to Orange in

2000. In December 2006, Hutchison Essar re-launched the "Hutch" brand nationwide,

consolidating its services under a single identity.

The company used to be named Hutchison Essar, reflecting the name of its previous

owner, Hutchison. However, the brand was marketed as Hutch. After getting the necessary

government approvals with regards to the acquisition of a majority by the Vodafone Group, the

company was rebranded as Vodafone Essar. The marketing brand was officially changed

to Vodafone on 20 September 2007.

[6]

On September 20, 2007 Hutch became Vodafone in one of the biggest brand transition exercises

in recent times.

Vodafone Essar is spending somewhere in the region of Rs. 250 crores on this high-profile

transition being unveiled today.Along with the transition, cheap cell phones have been launched
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in the Indian market under the Vodafone brand. The company also plans to launch co-branded

handsets sourced from global vendors as well.

A popular daily quoted a Vodafone Essar director as saying that "the objective is to leverage

Vodafone Group's global scale in bringing millions of low-cost handsets from across-the-world

into India."

Incidentally, China's ZTE, which is looking to set-up a manufacturing unit in the country, is

expected to provide several Vodafone handsets in India. Earlier this year, Vodafone penned a

global low-cost handset procurement deal with ZTE.

[edit]Growth of Hutchison Essar (1992-2005)

In 1992 Hutchison Whampoa and its Indian business partner established a company that in 1994

was awarded a licence to provide mobile telecommunications services in Mumbai (formerly

Bombay) and launched commercial service as Hutchison Max in November 1995. Analjit Singh of

Max still holds 12% in company.

In Delhi, UP (E), Rajasthan and Haryana, ESSAR was the major partner. But later Hutch took the

majority Stake.

By the time of Hutchison Telecom's Initial Public Offering in 2004, Hutchison Whampoa had

acquired interests in six mobile telecommunications operators providing service in 13 of India's 23

licence areas and following the completion of the acquisition of BPL that number increased to 16.

In 2006, it announced the acquisition of a company (Essar Spacetel A subsidiary of Essar

Group) that held licence applications for the seven remaining licence areas.

In a country growing as fast as India, a strategic and well managed business plan is critical to

success. Initially, the company grew its business in the largest wireless markets in India in

cities like Mumbai, Delhi and Kolkata. In these densely populated urban areas it was able to

establish a robust network, well known brand and large distribution network -all vital to long-term

success in India. Then it also targeted business users and high-end post-paid customers which

helped Hutchison Essar to consistently generate a higher Average Revenue Per User ("ARPU")

than its competitors. By adopting this focused growth plan, it was able to establish leading

positions in India's largest markets providing the resources to expand its footprint nationwide.

In February 2007, Hutchison Telecom announced that it had entered into a binding agreement

with a subsidiary of Vodafone Group Plc to sell its 67% direct and indirect equity and loan

interests in Hutchison Essar Limited for a total cash consideration (before costs, expenses and

interests) of approximately US$11.1 billion or HK$87 billion. In the same year, the company

entered into an agreement with NTT DoCoMo to launch i-mode mobile Internet service in India.
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1992: Hutchison Whampoa and Max Group established Hutchison Max

2000: Acquisition of Delhi operations Entered Calcutta and Gujarat markets through ESSAR

acquisition

2001: Won auction for licences to operate GSM services in Karnataka, Andhra Pradesh and

Chennai

2003: Acquired AirCel Digilink (ADIL ESSAR Subsidiary) which operated in Rajastan, Uttar Pradesh

East and Haryana telecom circles and renamed it under Hutch brand

2004: Launched in three additional telecom circles of India namely 'Punjab', 'Uttar Pradesh West'

and 'West Bengal'

2005: Acquired BPL (Except Mumbai)- 3 Circles, another mobile service provider in India

2008: Vodafone acquired the Licence in remaining 7 circles and has started its pending

operations in Madhya Pradesh/Chhattisgarhwith its headquarters at Malviya Nagar,Bhopalas

well as in Orissa, Assam, North East and Bihar

2008: Vodafone launched the Apple iPhone 3G to be used on its 17 circle 2.75G network.

Hutch was often praised for its award winning advertisements which all follow a clean, minimalist

look. A recurrent theme is that its message Hello stands out visibly though it uses only white

letters on red background. Another recent successful ad campaign in 2003 featured a pug named

Cheekafollowing a boy around in unlikely places, with the tagline, Wherever you go, our networkfollows. The simple yet powerful advertisement campaigns won it many admirers.

2009: Vodafone launched Recharge Online

2009: Vodafone Essar- 1st Indian Telecom operator to receive the Payment Card Industry

Security Standard (PCI DSS) certification for its Mumbai operations and launches unlimited SMS

offer in Mumbai.[7]

2010: Vodafone emerged as the most admired marketer in India. 2010: Vodafone crossed 100

million subscribers in India[8]

2010: Vodafone picks Nokia Siemens, Ericsson as 3G partners[9]

[edit]3G

Vodafone Essar, India's third-largest mobile carrier, will launch third-generation (3G) services in

the country in the January-March quarter of 2011 and plans to spend up to $500 million within two

years on its 3G networks. Vodafone Essar won 3G licences in nine of 22 telecom zones for Rs.
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11617.86 million, and has spent the second highest amount in the May 2010 auction. The circles

where Vodaofne will provide 3G services

are Delhi, Gujarat,Haryana,Kolkata,Maharashtra, Mumbai, Tamil Nadu,Uttar Pradesh (East)

andWest Bengal. The company namedNokia Siemens NetworksandEricsson as its 3G

equipment suppliers. [10]

[edit]Subscriber Base

Subscriber Data for May 2010

Mumbai Vodafone Essar 5,223,050

Delhi Vodafone Essar 5,416,687

Kolkata Vodafone Essar 3,657,252

Chennai Vodafone Essar 1,815,133

Gujarat Vodafone Essar 11,304,719

A.P. Vodafone Essar 6,175,850

Karnatka Vodafone Essar 5,405,997

Punjab Vodafone Essar 3,246,338

Haryana Vodafone Essar 3,056,743

U.P.(E) Vodafone Essar 10,781,644

Rajasthan Vodafone Essar 7,634,793

UP (W) Vodafone Essar 6,769,802

W B Vodafone Essar 7,647,809

Maharashtra Vodafone Essar 7,580,180

T.N. Vodafone Essar 7,465,390

Kerala Vodafone Essar 4,357,308

Orissa Vodafone Essar 1,212,187

Assam Vodafone Essar 890,226

North East Vodafone Essar 553,482

MP Vodafone Essar 2,048,312

Bihar Vodafone Essar 3,664,639
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HP Vodafone Essar 197,440

J & K Vodafone Essar 242,387

Total Vodafone Essar 106,347,368

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