Essar keen to dissuade Vodafone from Bharti network sharing deal

20 Feb 2007

The minority shareholder in Hutchison Essar, the Essar Group, is pushing Vodafone to ditch a planned network sharing deal with Bharti, India’s largest mobile network operator by subscribers, and instead use Essar’s own infrastructure. Prashant Ruia, a director of Essar, said yesterday that the idea of Vodafone using Essar’s own telecoms infrastructure business, Telecoms Towers and Infrastructure, for the work was ‘one of the areas’ up for discussion between Essar and Vodafone.

The planned tie-up between Vodafone and Bharti, which was announced by Vodafone two weeks ago, has proved a key sticking point in Essar’s relationship with Vodafone ever since the Newbury-based group agreed to buy Hutchison’s 67% stake in the company. Essar is thought to believe that a memorandum of understanding between Vodafone and Bharti ‘for a comprehensive range of infrastructure sharing options’ contravenes its existing shareholder agreement with Hutchison. It could, the Essar group believes, potentially breach contravene Indian corporate law too. Alongside the network sharing plan, Essar was also understood to want more board seats at the venture. It already has four of the twelve.

Subscribe

Subscribe to CommsUpdate to get the day’s top telecom headlines delivered to your email.

Subscribe to CommsUpdate

Browse Past Issues

Filter

Filter CommsUpdate by the following categories or use the search.

Search

Visit our help page information on performing advanced searches, including how to restrict the results by country or company.

Advertise

CommsUpdate is an outstanding advertising venue for companies seeking to reach:

  • International carriers
  • Wholesale service providers
  • Equipment and software vendors
  • Telecom investors
  • Regulators

Learn more about advertising on CommsUpdate.

Share