It sounds surprising, though. Comparative valuations of the two
companies reveals that bharti has been valued by Vodafone at Rs 67000
crore, while Hutch at just 21000 crore. Interesting is the fact that
while Bharti has a subscriber base of 14 million, hutch has a base of
11 million. The difference is due to the fact that Bharti, with its
Airtel brand is into fixed lines, is a NLD (national long distance)
service provider, ILD (International long distance) provider and a
Broadband provider as well.
The increase in FDI provision to 74% in telecom has been well tapped
by Bharti. Its current acquisition targets include Spice and Aircel.
If it gets these, the move could largely marginalize hutch and other
smaller mobile service providers.
Information souce: Economic Times, 31 Oct 2005
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