Last few days, global media was rife with speculation that vodafone is planning to enter Indian telecom market. Its a perfect combination considering India, being the worlds largest growing telecom market and Vodafone, being the worlds largest telecom operator. Also both the parties have their internal problems. India was facing stiff resistance from the left and other similiraly ideological parties for opening the realty and telecom sectors for foreign players. And Vodafone was facing revolt from its shareholders and also a dip in its credit rating by S&P (Standard & Poor). But every speculation was put on hold when Vodafone CEO Mr Arun Sarin came to India. That makes the message clear : Vodafone is serious.
We dont know who will win the control of hutchison essar among the warring parties. But it will determine the next who is who of Indian telecom.
->Reliance capturing Hutch, then it will be the largest mobile operator in India.
-> Vodafone capturing Hutch, Vodafone can increase its growth by 10-12% / annum, since european countries have now attained saturation and is growing at 4% / annum. This gives an immense scope for vodafone.
Result of the war: Hutchison Essar, which was valued at $10bn a year ago is now priced at $20bn.
Whoever wins, the only group who will be happy at the end of war will be the bankers :)
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