Vodafone Indiawas theIndiansubsidiaryofUK-basedVodafone Groupand was aprovideroftelecommunications servicesin India with its operationalhead officeinMumbai.[2]

Vodafone India Limited
FormerlyHutchison Max Telecom Limited (1992-2005)
Hutchison Essar Limited (2005-2007)
Vodafone Essar Limited (2007-2011)
Company typeSubsidiary
IndustryTelecommunications
FoundedFebruary 21, 1992;32 years ago(1992-02-21)
Founder
DefunctAugust 31, 2018(2018-08-31)(ascompany) September 7, 2020(2020-09-07)(asbrand)
FateMergedwithIdea CellularintoVodafone Idea
SuccessorVodafone Idea[1]
Headquarters,
India
Area served
India
ServicesMobile telephony
Internet
OwnerVodafone(100%)
ParentVodafone Group
SubsidiariesYOU Broadband(100%)
Websitewww.vodafone.in

As of March 2018, Vodafone India had amarket shareof 21%,[3]and with itsmergerwithIdea,the collectiveVodafone Ideanetwork has approximately 375 million subscribers and is thethird largest mobile telecommunications networkin India.[4]

History

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Hutchison Max Telecom (HMTL), ajoint venturebetweenHutchison Whampoaand theMax Group,was established on 21 February 1992.[5]The licence to operate inBombaycircle was awarded to Hutchison Max by theDepartment of Telecommunications(DoT) in November 1994.[6]Themobile servicebranded "Max Touch" was launched the same year.[7]Hutchison Max entered into theDelhitelecom circle in December 1999, theKolkatacircle in July 2000 and theGujaratcircle in September 2000. Licences for these circles had initially been awarded by the DoT in 1994, 1997 and 1995 respectively. Between 1992 and 2006, Hutchison acquired interests in all 23 mobile telecom circles of India.[6]

HMTL was renamed Hutchison Essar (HEL) in August 2005.[8]In Delhi,Uttar Pradesh (East),RajasthanandHaryana,Essar Groupwas the majorpartner.But later Hutch took the majority stake. By the time ofHutchison Telecommunications International's (HTIL) initial public offering in 2004, Hutchison Whampoa had acquired interests in six mobiletelecommunications operatorsproviding service in 13 of India's 23 licence areas and following the completion of the acquisition ofBPL Mobilethat number increased to 16. In 2006, it announced the acquisition of acompany(Essar Spacetel — Asubsidiaryof Essar Group) that held licence applications for the seven remaining licence areas. Initially, the company grew itsbusinessin the largestwirelessmarkets in India — in cities like Bombay, Delhi and Kolkata. In these densely populated urban areas it was able to establish a robust network, well-knownbrandand 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 higheraverage revenue per user(ARPU) than its competitors. By adopting this focusedgrowth 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 ofVodafone Group Plcto sell its 67% direct and indirectequityandloaninterests in Hutchison Essar for a total cash consideration (before costs, expenses and interests) of approximately $11.1 billion. Theacquisitionwas completed on May 8, 2007.[citation needed]

Hutch was often praised for its award-winning advertisements which all follow a clean, minimalist look. A recurrent theme is that its message "Hi" stands out visibly though it uses only white letters on red background. Another successful ad campaign in 2003 featured apug named Cheekafollowing a boy around in unlikely places, with the tagline, "Wherever you go, our network follows." The simple yet powerful advertisement campaigns won it many admirers. Advertisements featuring the pug were continued by Vodafone even after rebranding. The brand subsequently introducedZooZooswhich gained even higher popularity than was created by the Pug. Vodafone's creative agency is O&M while Harit Nagpal was the Marketing Director during the various phases of its brand evolution.[citation needed]

Vodafone purchases Essar's stake

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In July 2011, Vodafone Group bought the mobile phone business of its partner Essar Group for $5.46 billion. This meant Vodafone owns 74% of Essar.[9]On 11 February 2007, Vodafone agreed to acquire the controlling interest of 67% held byLi Ka ShingHoldings in Hutchison Essar for US$11.1 billion, pippingReliance Communications,Hinduja Group, and Essar Group, which is the owner of the remaining 33%. The whole company was valued atUSD18.8 billion.[10]The transaction closed on 8 May 2007. In April 2014, India basedPiramal Groupsold its 11% Stake in Vodafone India to Prime Metals, an indirect subsidiary of Vodafone Group.[11][12]

Vodafone-Hutchison tax case

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Vodafone was embroiled in a $2.5 billion tax dispute with the Indian Income Tax Department over its purchase of Hutchison Essar Telecom services in April 2007. It was being alleged by the Indian Tax authorities that the transaction involved purchase of assets of an Indian Company, and therefore the transaction, or part thereof was[13]liable to be taxed in India.[14]

Vodafone Group Plc. entered India in 2007 through a subsidiary based in the Netherlands, which acquired HTIL stake in HEL — the joint venture that held and operated telecom licences in India. ThisCayman Islandstransaction, along with several related agreements, gave Vodafone control over 67% of HEL and extinguished Hong Kong-based Hutchison’s rights of control in India, a deal that cost the world’s largest telco $11.2 billion at the time.[15]

In January 2012, theSupreme Court of Indiapassed the judgement in favour of Vodafone, saying that the Indian Income tax department had "no jurisdiction" to levy tax on overseas transaction between companies incorporated outside India. However, Indian government thinks otherwise. It believes that if an Indian company, Hutchison India Ltd., conducts a financial transaction, then the government should get its tax from it. Therefore, in 2012, India changed itsIncome Tax Actretroactively and made sure that any company, in similar circumstances, is not able to avoid tax by operating out of tax-havens like the Cayman Islands orLichtenstein.In May 2012, Indian authorities confirmed that they were going to charge Vodafone about20,000 crore (US $3.3 billion) in tax and fines. The second phase of the dispute is about to start.[16]The Bombay high court on Thursday directed theIncome Tax Appellate Tribunal(ITAT) to hear a Rs.8,600 crore transfer-pricing tax dispute relating to the Indian arm of Vodafone Group from 21 February on a daily basis till a final order is passed.[17]

Merger with Idea Cellular

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The entry ofJioin 2016 had led to variousmergers and consolidationsin the Indian telecom sector.[18]It was announced in March 2017 that even Vodafone India andIdea Cellularwould bemerged.The merger got approval from Department Of Telecommunications in July 2018. On August 30, 2018,National Company Law Tribunalgave the final nod to the Vodafone-Idea merger.[1]The merger was completed on 31 August 2018, and the newly merged entity was namedVodafone Idea.[19][20][21][22]The merger created the largest telecom company in India by subscribers and by revenue. Under the terms of the deal, the Vodafone Group holds a 45.5 % stake in the combined entity, theAditya Birla Groupholds 26% and the remaining shares will be held by the public.[22]

YOU Broadband

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YOU Broadband

YOU Broadband(formerlyYOU Telecomand originallyIqara Telecom) is anIndiantelecommunications companyfounded byBritish Gasand, since 2017, owned by Vodafone India, which offersfixed-linebroadband(FTTH) and voice services (VoIP) in indian major cities which includesAhmedabad,Aurangabad,Bengaluru,Chennai,Gurugram,Hyderabad,Kakinada,Mumbai,Nagpur,Nashik,Navi Mumbai,Navsari,Powai,Pune,Rajkot,Surat,Thane,Vadodara,Valsad,Vapi,VijayawadaandVisakhapatnam.[23]

Mobile network

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Since 2011, Vodafone launched3Gnetwork using 900 MHz and 2100 MHz. The first city to receive 3G service wasLucknowinUttar Pradesh.

M-Pesa,was launched inIndia[24][25]as a close partnership withHDFC Bankin November 2011.[26][27][28][29][30][31]

On 28 June 2012, Vodafone launched a new internationalroamingpackage under which the users shall have not to pay multiple rentals in the countries they are visiting.[32]

On 19 May 2015,TRAIannounced that Vodafone had been awarded spectrum in 9 circles for 3G coverage, bidding around11617.86 million (the second highest amount in the auctions) for the spectrum.[33]

On 8 December 2015, Vodafone announced the roll out of its4Gcoverage in India on 1.8 GHz and 2.1 GHz bands starting fromKochi.The service became available to customers in India nationally in 2017, with plans for further expansion. Vodafone now starts 2100Mhz and 2500 MHz for 4G by which customers will get superior 4G speed than previous.[34]

VoLTE

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Vodafone India had started rolling itsVoLTEservices in the country under the tag Vodafone Super VoLTE. Gujarat was the first circle to receive that service. Before the merger withVodafone Ideathe circles where the company was providing VoLTE were:

Awards and recognition

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  • LinkedIn Top Attractors 2017 Award- Vodafone India ranked 20th[36]
  • CIO Choice 2018 Award winner- Vodafone Business Services recognized as the chosen leader for Telecom Carrier - Leased Lines & Mobile Access[37]
  • The Brand Trust Report,[38]2011 published by Trust Research Advisory has ranked Vodafone[39]as the 16th most trusted brand in India.
  • Flame Awards Asia 2017 for #Saluteourfarmers campaign: Silver for the Best Farmer Connect initiative and Bronze for the Best use of Social Media
  • Aegis Graham Bell Awards 2017: Vodafone Business Services for Innovative Marketing Campaign for the Ready Business CampaignAegis Graham Bell Awards 2017 and Vodafone Business Services for Innovative Marketing Campaign for the Ready Business Campaign
  • Voice and Data Telecom Leadership Awards 2015:Special leadership recognition to: Vodafone RED for marketing

See also

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References

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  1. ^abParbat, Kalyan; Sengupta, Devina (31 August 2018)."NCLT gives go-ahead to Idea-Vodafone merger".The Economic Times.Retrieved1 September2018.
  2. ^"About Vodafone India Limited - India?s Largest Telecom Company".www.vodafone.in.Retrieved29 April2017.
  3. ^Parbat, Kalyan (12 June 2018)."Reliance Jio third-largest telecom by revenue market share".The Economic Times.Retrieved13 June2018.
  4. ^Abbas, Muntazir (16 May 2018)."Vodafone India revenue drops 29% in FY18".The Economic Times.Retrieved13 June2018.
  5. ^"Hutchison Max Telecom Limited information".Corporatedir.com.Archivedfrom the original on 24 December 2014.Retrieved24 December2014.
  6. ^ab"THE HIGH COURT OF JUDICATURE AT BOMBAY - WRIT PETITION NO.1325 OF 2010"(PDF).Bombay High Court.Archived(PDF)from the original on 5 January 2012.Retrieved19 November2013.
  7. ^"Max India Ltd".The Times Of India.Archivedfrom the original on 27 December 2011.
  8. ^"Vodafone International Holdings B.V.: Appellant(s) versus Union of India & Anr.: Respondent(s)"(TXT).Courtnic.nic.in.Archivedfrom the original on 26 December 2015.Retrieved24 December2014.
  9. ^"BBC News - Vodafone finalises India mobile subsidiary buyout".BBC News.July 2011.Archivedfrom the original on 25 September 2015.Retrieved24 December2014.
  10. ^"/ Companies / Telecoms — Investors welcome Vodafone deal".Ft.com.Archivedfrom the original on 11 July 2007.Retrieved1 May2009.
  11. ^"Piramal Group to sell Vodafone India stake for Rs. 8900 crore".IANS, news.biharprabha.com. 10 April 2014.Archivedfrom the original on 12 April 2014.Retrieved10 April2014.
  12. ^"Company History | About Vodafone India".www.vodafone.in.Retrieved29 April2017.
  13. ^"Idea, Vodafone India Announce Merger, to Be Biggest Telecom Operator in India".NDTV.Archivedfrom the original on 20 March 2017.Retrieved20 March2017.
  14. ^Lamont, James (30 June 2011)."Vodafone warns India tax bill to hit $5bn".FT.com.Retrieved15 June2013.
  15. ^"Vodafone Completes Hutchison Essar Deal".Forbes.Archivedfrom the original on 12 February 2013.Retrieved11 November2017.
  16. ^"Vodafone-Hutchison deal: Vodafone wins Rs 11,000 crore tax case - The Times of India".The Times Of India.Archivedfrom the original on 20 January 2012.
  17. ^"Vodafone wins transfer pricing tax dispute case".The Hindu.Archivedfrom the original on 12 November 2017.Retrieved12 November2017.
  18. ^Raj, Amrit (21 October 2017)."The shakeup in India's telecom sector".www.livemint.com.Retrieved21 April2018.
  19. ^"Vodafone Idea Limited | Campaign".www.vodafoneidea.com.Retrieved24 July2019.
  20. ^Guha, Romit."Idea approves merger with Vodafone India, to create India's largest telco".The Economic Times.Retrieved20 March2017.
  21. ^Kurup, Rajesh (20 March 2017)."Idea Cellular board approves merger with Vodafone India; shares tank 9%".The Hindu Business Line.Retrieved20 March2017.
  22. ^ab"Disclosure under Regulation 30 of SEBI (LODR) Regulations, 2015"(PDF).BSE.BSE.Retrieved31 August2018.
  23. ^"YOU Broadband India Limited".www.youbroadband.in.Retrieved24 September2017.
  24. ^"What you dont now about Mpesa…".The mind of Mbugua Njihia. 15 July 2009.Archivedfrom the original on 1 November 2012.Retrieved24 December2014.
  25. ^"Mobile phone banking in Africa".YouTube.Archivedfrom the original on 11 October 2014.Retrieved24 December2014.
  26. ^HDFC LaunchArchived16 April 2014 at theWayback Machine."HDFC Launch". Retrieved 28 June 2012
  27. ^ICICI BankArchived16 April 2014 at theWayback Machine."ICICI Bank". Retrieved 28 June 2012
  28. ^Russell, Jon (17 April 2013)."Vodafone launches M-Pesa mobile banking service in India, targeting 700m 'unbanked' people".The Next Web.Archivedfrom the original on 21 April 2013.Retrieved20 April2013.
  29. ^"Vodafone to bring M-Pesa service to 20,000 customers in MP".NDTV Gadgets.Archivedfrom the original on 24 December 2014.Retrieved24 December2014.
  30. ^PTI."Vodafone launches money transfer service 'm-pesa' in Delhi".The Hindu Business Line.Archivedfrom the original on 11 October 2014.Retrieved24 December2014.
  31. ^"Ignore both Airtel Money and M-Pesa".Moneysaverindia.com.Archivedfrom the original on 28 December 2014.Retrieved24 December2014.
  32. ^"Vodafone India offers new international roaming pack".28 June 2012. Archived fromthe originalon 28 June 2012.Retrieved28 June2012.
  33. ^"India's 3G Auction Ends; Operator And Circle-Wise Results".MediaNama.Archivedfrom the original on 25 August 2010.Retrieved24 December2014.
  34. ^"Vodafone India to Rollout 4G Services Starting from Kochi on Monday".Archivedfrom the original on 18 May 2016.Retrieved18 October2016.
  35. ^ab"Vodafone Super VoLTE Network | 4G VoLTE (Voice Over LTE) for HD Voice Calls | Vodafone India".discover.vodafone.in.Retrieved10 November2018.
  36. ^"LinkedIn Top Companies 2017: Where India wants to work now".18 May 2017.Retrieved13 June2018.
  37. ^"2018 Recognized Brands - CIO CHOICE".CIO CHOICE.Retrieved13 June2018.
  38. ^"A Matter of Trust".Financialexpress.com.Archivedfrom the original on 11 January 2013.Retrieved15 June2013.
  39. ^"India's most trusted brands - Rediff.com Business".Rediff.com.20 January 2011.Archivedfrom the original on 27 May 2013.Retrieved15 June2013.
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