Indian Regulators Delay Approval Of Vodafone Deal

India’s foreign investment regulator has deferred a decision on Vodafone’s plans to buy Hutchison Telecom’s controlling stake in Hutchison Essar.

After a meeting of the Foreign Investment Promotion Board, Finance Secretary Ashok Jha told reporters in New Delhi that the board had asked for more details on the deal.

This is the second time the board has deferred approval. Jha was quoted as saying the board would make its decision soon, but he didn’t specify when.

Last month, Hutchison Telecom agreed to sell its 67% stake in Hutchison Essar to Vodafone for $11.1 billion. The Essar Group holds the remaining 33% in India’s fourth-largest cellular service provider, which has about 25 million subscribers.

Indian law only allow 74% foreign direct investment in telecom companies, and authorities are looking into the ownership structure of Hutchison Essar. This month, a citizens group filed a petition charging that foreign ownership in the firm was above 74%.

Apart from Hutchison Telecom’s stake, 22% of Essar’s stake is held by foreign shareholders.

The controversy is over the 12.3% stake held by Asim Ghosh and Analjit Singh.

Though both are Indians, Hutchison Telecom funded their acquisition of the shares and held options to buy them out. Because of this, it has been argued that Hutchison controlled their stakes, and hence it should be counted as foreign investment.

Both of them have denied the charge, as well as reports that Vodafone will now control their stake.

Vodafone appears confident of jumping the regulatory hurdles. A spokesperson for the U.K. cellular giant said the deal was expected to close in the second quarter, as scheduled.

Hutchison Telecom’s chief Dennis Lui was quoted as telling reporters in Jakarta, Indonesia, that the company’s ownership in Hutchison Essar was in full compliance with foreign investment regulations and that had been confirmed last year.

“It should not take too long for the sale to be concluded,” he said.

BT may offer low-powered GSM in India

British Telecom (BT) of the UK is considering a low-powered global system for mobile communications (GSM) service in India, which can bring down the costs significantly on calls made by mobile phones inside offices.

Speaking to Business Standard, BT Global Services Chief Executive Officer Andy Green said, “Low-powered GSM is part of our 21st century network solution and we are ready to explore, if it is allowed, in India.”

India does not issue separate licences for such services. Existing GSM licence holders can go ahead and offer the service, but given their outdoor orientation, the viability may be an issue.
The Telecom Regulatory Authority of India had some time ago suggested the possibility of such networks in the country.

Says T V Ramachandran, secretary-general of Cellular Operators Association of India, “We are already looking at using in-built networks or low-powered GSM in places such as the new Bangalore airport as this is the best way to provide coverage in congested areas where spectrum is limited. Currently, you can operate these networks on existing spectrum.”
In countries such as the UK, the regulator has issued a number of low-power GSM licences that can be operated by independent operators on a spectrum different from that given to GSM operators.

UK telecom regulator Ofcom issued several licences in early-2006 to BT and Colt Telecom among others.

Low-powered GSM is a technology in which small low-powered GSM cell sites are located within a building, on which runs a small localised mobile network.

In simple terms, you can use your mobile phone to make a call outside the building —the call will be connected through the low-powered GSM network in the building.

Instead of using a fixed phone you can call local extensions in office through short codes with no extra cost through the mobile phone.

Similarly calls made by others on your extension at office will directly come on your mobile phone wherever you are. However, once the subscriber moves out of the office the call will be seamlessly transferred onto his GSM network operator.

The advantage is cheaper call rates for subscribers and large saving of scarce spectrum for GSM operators.

This system has a number of benefits for service providers as well as users. The key driver is the fact that an average 70 per cent of all mobile calls happen when the user is stationary. In addition, most calls are made when users are in their office.

Given the spectrum crunch — there is not enough of it —for the growing number of users in India, especially in the cities, low-powered GSM may be a solution to improve network quality and reduce congestion.

This will also result in the convergence of fixed and mobile devices.

Reliance adds 600,000 rural telephones

Telecom major Reliance Communications (RCOM) on Thursday announced an addition of 600,000 rural telephone users for March under the government's universal services obligation (USO) fund programme.

The USO fund was set up by the government in 2003 for funding its rural connectivity programme.

"I am delighted to announce that Reliance Communications has rolled out telephone connections to 40,000 villages hitherto devoid of any phones," Sanjeev Govil, head of National Rural Marketing-RCOM, said in a statement.

"Our tariffs are made very attractive and affordable to benefit the rural people who have come to realise the necessity to stay connected with the rest of the world," Govil added.

The company, which has a customer base of 30 million, has brought various tariff packages to entice the rural users and increase the company's penetration in India's hinterland.

Charges for local calls will be 80 paise per three minutes for fixed line and WLL (wireless local loop) users and for mobile users 80 paise a minute, the statement said.

TRAI to phase out ADC

Calling friends or family living overseas will soon get a whole lot cheaper. The government has decided to slash a tax that private telecom companies were forced to pay to state owned BSNL and the tax cuts run deep.

The tax called access deficit charge will now be zero for outgoing international calls from 80 paise per minute.

ADC on incoming international calls has been cut 38 per cent from Rs 1.60 per minute to Re 1 per minute. There is relief on the domestic front as well. ADC on gross revenues is down 50 per cent for this year.

So telcos instead of paying 1.5 per cent of their revenue as ADC will now have to pay just 0.75 per cent of their revenues as ADC.

All this will cut the total ADC amount by Rs 1,200 crore (Rs 3,200 cr to Rs 2,000 cr). The cut in ADC could have been even greater but for disagreement between BSNL and private telcos on ADC calculation and payment.

Cutting call rates

Telecom operators like Bharti, Hutch and Idea are happy with the idea of an ADC cut but they feel that the amount of ADC could have been reduced further. However, the good news for customers is that atleast some of the operators are willing to pass on the benefit by cutting call rates.

The telecom regulator TRAI has said that it will stick to its decision of phasing out ADC by next year.

Besides, even though this round of cut in ADC is likely to shore up the bottomlines of telecom companies, consumers will only benefit if these companies decide to pass on some of the benefits to them.

ISD tariffs to fall on ADC revision, Trai to decide this week

The international long distance calls (ISD) may become cheaper as telecom regulator Trai is considering reducing levy on both outgoing and incoming ISD calls from April 1.

According to sources, Trai will be meeting this week to finalise the annual review of access deficit charge, a levy being paid by private operators to BSNL for rolling out services in remote and rural areas, which may be reduced on ISD traffic.

The ADC on both outgoing and incoming ISD calls may be reduced by up to 50 per cent and the current total ADC of 1.5 per cent of gross revenue is also likely to come down to one per cent.

As per the road map the total ADC, currently at Rs 3,335 crore, should be lowered to Rs 1,600-1,800 crore for 2007-08 before being phased out by next fiscal to zero.

Even as state-owned BSNL has objected to reduction in ADC annually, Trai has been maintaining that the road map for phasing out the levy would be followed.

The domestic long distance (STD) call tariffs may also fall marginally as the reduction would be spread over to all segment but more on the ILD traffic.

The new ADC regime will come into effect from April 1 this year.

The implementation of the new regime may, however, get delayed as the telecom tribunal Tdsat is hearing a petition on ADC regime challenged by BSNL.

Sources in the Trai said that although the new regime was independent of any past litigation but it (Trai) would prefer to wait for the final judgement from the tribunal.

BSNL plans broadband expansion

Bharat Sanchar Nigam Limited (BSNL) plans to invest Rs 800 crore to expand its broadband network across the country over the next three years. The state-owned telecom major will also invest Rs 27,000 crore over the next three years for the expansion of the cellular network primarily in rural areas.

The company expects to get the 3G spectrum by the end of 2007. BSNL is also planning to roll out the multiplay services in Chennai, Bangalore, Kolkata and Hyderabad over the next three to six months.

“For broadband, we will invest Rs 800 crore over the next three years to expand the network. From January 2008, we will add five million broadband connections per year. In the next year, we will spread broadband to 1,100 towns and will connect 20,000 villages with broadband connection.

We are planning to provide one crore cellular connections by end of 2007. From January 2008, we plan to provide three crore connections per year. We plan to invest Rs 27,000 crore for the infrastructure to reach to villages of India,” said BSNL chairman and managing director A K Sinha.

The telecom major, which on Thursday launched the first multiplay service in the country in Pune said that it is scouting for content providers in cities such as Chennai, Bangalore, Kolkata and Hyderabad and has tied up with a few of them.

“We are currently the connection provider but there are places where we will not be able to find content providers with whom we can partner for multiplay services. We are planning to invest Rs 300 to 400 crore for content development,” said Mr Sinha.

The telecom major said Value Added Services (VAS) contributed Rs 100 crore to its 2005-06 revenues. With the introduction of multiplay services, it expects VAS to contribute Rs 500 crore this fiscal and Rs 200 to 300 crore every subsequent year.

BSNL plans convergent billing system

Bharat Sanchar Nigam (BSNL) which is to introduce convergent billing system across the country is in the process of finalising the winners for the billing contract. The PSU telecos has earmarked over Rs 4,500 crore for it.


Wipro Infotech, HCL Technologies, TCS, Satyam Computers and Tech Mahindra have qualified technical evaluation and financial evaluation is underway. The contract will be split between two players and the winners are likely to be announced next month.

The new system will be more than just convergent billing and will include call record management as well as fraud management. It will involve deployment of storage area networks (SAN) for billing systems.

The Call Detail Record (CDR)-based customer care and convergent billing system will end multiplicity of functions.

A data centre each will be set up in Hyderabad, Pune, Kolkata and Chandigarh. The system will be implemented throughout India in BSNL's four zones and four data centres.

The whole implementation process is likely to over an year while maintenance will be an ongoing exercise.

BSNL plans broadband expansion

Bharat Sanchar Nigam Limited (BSNL) plans to invest Rs 800 crore to expand its broadband network across the country over the next three years. The state-owned telecom major will also invest Rs 27,000 crore over the next three years for the expansion of the cellular network primarily in rural areas.

The company expects to get the 3G spectrum by the end of 2007. BSNL is also planning to roll out the multiplay services in Chennai, Bangalore, Kolkata and Hyderabad over the next three to six months.

“For broadband, we will invest Rs 800 crore over the next three years to expand the network. From January 2008, we will add five million broadband connections per year. In the next year, we will spread broadband to 1,100 towns and will connect 20,000 villages with broadband connection.

We are planning to provide one crore cellular connections by end of 2007. From January 2008, we plan to provide three crore connections per year. We plan to invest Rs 27,000 crore for the infrastructure to reach to villages of India,” said BSNL chairman and managing director A K Sinha.

The telecom major, which on Thursday launched the first multiplay service in the country in Pune said that it is scouting for content providers in cities such as Chennai, Bangalore, Kolkata and Hyderabad and has tied up with a few of them.

“We are currently the connection provider but there are places where we will not be able to find content providers with whom we can partner for multiplay services. We are planning to invest Rs 300 to 400 crore for content development,” said Mr Sinha.

The telecom major said Value Added Services (VAS) contributed Rs 100 crore to its 2005-06 revenues. With the introduction of multiplay services, it expects VAS to contribute Rs 500 crore this fiscal and Rs 200 to 300 crore every subsequent year.

Vodafone, Essar resolve contentious issue, deal tomorrow

Arun Sarin, CEO of Vodafone which successfully bid for majority stake in domestic mobile firm Hutch-Essar, will visit India on Thursday to ink a deal with Indian partner Essar on management and organisational issues.

Nearly a month after the UK firm clinched a deal for acquiring Hong Kong-based Hutchison Telecom International's controlling stake in HEL, Sarin will announce the terms and conditions of the partnership with Ruias-promoted Essar, which holds 33 per cent stake in the joint venture.

The two firms have also agreed to rename HEL as Vodafone Essar, which would start selling its products and services under the Vodafone brand in due course.

The partnership would be announced at a joint press conference by Sarin and Essar group Vice Chairman Ravi Ruia, sources close to the development said. However, it was not confirmed whether the deal would be announced in the national capital or Mumbai, where HEL is headquartered.

Under the terms of partnership believed to have been agreed by the two firms, Vodafone would have operational control of Vodafone Essar and Ruias would have rights, such as board representation, in accordance with their 33 per cent equity.

Ravi Ruia is likely to be appointed Chairman of Vodafone Essar board, while Sarin would be named Vice Chairman.

Following the completion of HTIL's stake sale, which is expected in the next few weeks, Vodafone would get a controlling stake of 51.57 per cent in the venture, while Essar Group would continue to retain its 33.02 per cent.

HTIL's existing Indian partners Asim Ghosh, Analjit Singh and Infrastructure Development Finance Company Ltd (IDFC) have agreed to remain minority partners with their collective 15.03 per cent stake.

Mittal to storm telecom with $8-bn investment

Striving to retain the lead position in the mobile industry, Bharti Airtel will invest a massive $8 billion by 2010 for a 25%market share.

"By 2010, estimates are that India will have 400-500 million subscribers. Bharti strives to retain up to 125 million or 25% of the market," group chairman Sunil Mittal said.

The expansion programme assumes importance in the wake of imminent entry of global mobile leader Vodafone through acquisition of Hutch-Essar. After the Vodafone announcement, Mittal had said Bharti would continue to be the numero uno in India.

The company, since its inception, has planned an investment of about $8 billion (about Rs 36,000 crore) for various services, including mobile, basic, national and international long-distance, undersea cable and broadband services.

“We are spending nearly $2 billion every year as the future (in terms of creation of infrastructure) continues to be stronger than the past... by 2010, we would have doubled the investment. We had put up about 10,000 base stations by 2005-end, another 10,000 by 2006 and this year (2007-08) we would add about 20,000,” Mittal said.

Stating that Bharti had about 34-35 Million subscribers, Mittal said, based on the annualised figure of the last quarter, revenue would be touching $4 billion (Rs 18,000 crore) this year and could double by 2010.

Asked whether Bharti would continue to invest in telecom at the same pace, Mittal said his company had been doubling infrastructure (base stations) every year and by March next year, it would have 40,000 base stations. But the number of towers to be added in the 2008-09 fiscal will be fewer than what has been added until now.

“I may add 30,000 towers in 2008-09. So, for the first time, we will see fewer number of towers coming in than what we did in the past. So, that is the time you start getting some ease on the investment side,” Mittal said.

Temasek, Crown Castle may buy into Tata cell tower unit

Singapore-based Temasek Holding and the world's second-largest tower business company, Crown Castle International, are understood to be in talks with Tata Teleservices to buy close to a 15 per cent stake in its to-be-hived-off cellular tower business.

Taking a cue from Reliance and Bharti, Tata Teleservices has announced that it will hive off the tower business as a separate subsidiary. "Towers are passive infrastructure. We are actively discussing with various companies on having them take over the business," Tata Teleservices CEO Darryl Green said. A Tata group spokesperson declined to comment on the issue.

While Green admitted that the company had held discussions with around six global firms, investment-banking sources said negotiations with Temasek and Crown Castle were at an advanced stage.

Temasek is a long-term partner of Tata Teleservices. The Singapore-based fund had bought a 10 per cent stake in Tata Teleservices in March 2006 for Rs 1,500 crore. Crown Castle is the world?s second-largest tower and passive infrastructure company and is keen on entering the Indian market.

The Tatas have appointed Morgan Stanley as advisers for spinning off the tower business. Tata Teleservices has close to 5,000 towers, in which it has invested close to Rs 1,000 crore.

Analysts said with the participation of Temasek or Crown Castle, the valuation of Tata Teleservices tower subsidiary might fetch up to $1 billion. American Towers and private equity players like Blackstone and Kohlberg Kravis Roberts are in the race for picking up stakes in the tower subsidiaries of Reliance and Bharti.

Indian telecom companies are hiving off their tower businesses to reduce their additional infrastructure investment.

A recent consultation paper by the telecom regulator says passive infrastructure contributes to 60 per cent of the total cost of networks and active electronics 40 per cent.

Tata Teleservices to hive off cell tower business

Toeing the industry line, Tata Teleservices on Thursday said it would hive off its capital intensive towers business and would look for partners to operate the venture.

"Investment in towers has sunk lots of our money. We want to monetise our investments in the towers," Tata Teleservices CEO Darryl Green told reporters here.

The company, which has invested about Rs 1,000 crore in setting up 5,000 cell towers, is open to a partnership for the business. "We can have a partnership. It all depends on the agreement," Green said.

"Secondly, sharing of towers among other players would reduce the rental cost, too," he said.

He said the company, which offers CDMA telecom services, would invest Rs 3,500 crore in 2007-08 for rolling out services in more towns as it plans to add 100 million subscribers by 2011 from the present 15.5 million.

Market leader Bharti Airtel and Reliance Communications have announced hiving off their towers business.

Total ADC requirement is Rs 14,300 cr: BSNL tells TRAI

Opposing telecom regulator TRAI's decision to cut the Access Deficit Charge, state-run BSNL has sought an almost five-fold jump in the levy paid by private operators for its rural operations to Rs 14,300 crore a year.

BSNL, which has dragged TRAI in telecom tribunal TDSAT over the issue, told the regulator that the total ADC per year to offset its deficits on account of running below-cost rural services is about Rs 14,300 crore.

The BSNL is slated to get Rs 3,200 crore in 2006-07 as ADC. This is likely to decline to Rs 1,600 in 2007-08 after TRAI announced a reduction in the levy in April last year.

The company said as per the calculation of ADC on the methodology prescribed by TRAI, the gross rental deficit for all Direct Exchange Lines (DELs) is Rs 12,089 crore.

The calculation is based on total DELs at 3.51 crore. Average rental cost per DEL is Rs 425 per month and its recovery is Rs 138, leaving a rental deficit of Rs 287.

The gross rental deficit for all DELs is Rs 12,089 crore and if deficit is calculated for free calls and subsidised calls, the total ADC will be more than this amount.

ADC based on rural DELs will be Rs 8,771 crore. There are 1.28 crore rural DELs and a deficit per rural DEL of Rs 571 per month. The ADC on account of free calls is Rs 2,074 crore and subsidised call is Rs 3,456 crore, taking the total to Rs 14,301 crore of ADC a year.

Tata Teleservices launches low cost handset

Tata Teleservices, parent company of Tata Indicom mobile services, has launched the MotoFone F3c in India, the first global unveiling of this ultra low cost handset for the code division multiple access (CDMA) cellular service.

The phone is being offered at Rs. 1,699 all-inclusive and for this price, Tata Indicom is throwing in a prepaid SIM with free incoming calls for a year.

The super-slim Motorola design, just 9 mm thick and weighing just 75 grams, comes with a proprietary high contrast display, over four hours of talk time and eight days of standby on a full charge and Hindi, English, Telugu, Tamil, Malayalam and Kannada and 84 localised polyphonic ringtones.

The low cost of the handset was made possible by a Qualcomm system-on-a-chip, the QSC 6010, which integrates audio, radio and power management functions on a single slab of silicon. Indian engineers working in the Hyderabad development centre of the U.S.-based Qualcomm contributed to the chip's software, the while crucial hardware design was done at the company's Bangalore laboratory.

Kanwalinder Singh, Qualcomm President for India and SAARC, told The Hindu that the QSC 6010 was the first in a series of single chip solutions aimed at fuelling compellingly priced `value platforms' with increasing features — adding music and camera — and ultimately full `3G' functionality.

Tata Teleservices CEO Darryl Green said the company was seeing quick ramp-up in Karnataka where it had just crossed one million customers and in Delhi where it had crossed two million. Nationwide, it counted over 15 million subscribers — and hoped that offerings like the MotoFone (it hoped to sell 2-3 million units of this handset in 2007) would make for a compelling proposition.

DoT directs ISPs to pull the plug on unregistered BPOs

In a move that could put nearly 50,000 people out of job, the Department of Telecom has directed Internet Service Providers to stop providing connectivity to all call centres and BPOs that are not registered with the Government.

Without the leased line connectivity the BPOs will not be able operate, forcing nearly 2000 call centres to shut shop across the country. While the DoT move has been necessitated after it was found that some of the unregistered call centres were using the ISP's infrastructure to make illegal telephone calls, the BPO industry said that they should be given time to register all the call centres operating in the country.

The Business Process Industry Association of India (BPIAI), which is an affiliated association of Confederation of Indian Industry (CII), has strongly opposed the DoT decision. Mr Sam Chopra, BPIAI President, said, "In the globally competitive outsourcing industry, Indian call centers/BPOs must have free access to the most cost-effective technologies, solutions and services from providers in India and overseas. With the restrictive practices being implemented by DoT, our industry will lose out to other emerging outsourcing locations such as Sri Lanka, Pakistan, Nepal, Philippines and Eastern urope."

ISPs also stand to lose business from the decision. "It is very ironic that on the one hand DoT wants to close down unregistered call centres and on the other hand it is not clearing applications from BPOs who want to register," said Mr Amitabh Singhal, Director-General, Internet Services Providers Association of India.

BPIAI has proposed that all unregistered call centres be allowed up to 90 days for filing registration applications with DoT. "The DoT, in turn, must accept or reject registrations within a time-bound period of 30 days. In the interim period these call centres being allowed to carry on their business as usual," said a statement.

Hutchison in court move to anticipate Essar plea

Hutchison Telecommunications International Ltd. has requested the Indian courts to keep it informed of any legal suit filed by the Ruias, its former Indian mobile phone joint venture partner, the Economic Times said on Friday.

Hutchison Telecom agreed last month to sell its 67 percent stake in Hutchison Essar, India's No.4 mobile carrier, to Britain's Vodafone Group Plc. for $11.1 billion, but anticipates a plea by Essar, which holds the other 33 percent in the venture, to exercise a right of first refusal.

Essar, run by media-shy billionaire brothers Shashi and Ravi Ruia and with interests in shipping, steel, oil, power, construction and back-office sectors, has consistently maintained it had the right of first refusal if Hutchison were to sell its stake in Hutchison Essar.

Hutchison says this only applied if it sold to local firms. The newspaper said Hutchison Telecom had filed a caveat, a notice that ensures no legal action is taken without knowledge of the party filing the caveat, in Mumbai and New Delhi courts.

No one at Hutchison Telecom could be immediately reached in Hong Kong, while a spokesman for the Essar group said it had not yet received information regarding the caveat.

Hutchison Telecom shareholders are due to vote on the Vodafone deal on March 9.

Vodafone and Essar representatives met in London last week, but discussions were far from smooth, the Economic Times said.

While the Ruias are seeking joint management rights, a hike in shareholding and a put option, Vodafone is yet to make up its mind over the demands, the paper said, citing unnamed sources.

Essar has said it may seek to raise its stake and wanted joint management of the mobile joint venture.

Vodafone has offered to buy the Ruias stake in Hutchison Essar at the price it paid Hutchison, but Essar has said it wants to stay on in India's fast-growing telecom industry.

Bharti Airtel lowers entry cost of BlackBerry in India

Bharti Airtel Ltd has announced that the Company reinforced its commitment to drive affordability in the Indian telecom market by brining down the entry cost for its Prosumer users of BlackBerry.

With effect from March 01, 2007, Airtel has reduced the fixed monthly rental for BlackBerry from Rs 1099/- per month to Rs 249 per month. In this new plan apart from the fixed monthly rental, Airtel BlackBerry users will be charged Rs 0.15/- per Kb of usage.

Since BlackBerry utilizes a high level of data compression the average monthly bill is expected to significantly reduce by 40% to 45%. Airtel BlackBerry users who have a greater data requirement have the option of continuing with the old plan wherein they will be charged a fixed monthly rental of Rs 1099/- per month for unlimited usage. Airtel has also brought down the price of the popular BlackBerry 7100g handset to Rs 10,999/-.

Mr. Sunil Tandon, Senior Vice President, Corporate & SME segment, of the Company said "Since the time we introduced Email-on-the-Go to the Indian market it has been our constant endeavor to bring greater value to the Airtel BlackBerry users. In the last few years, Airtel has played the role of an evangelist in building the need for BlackBerry amongst the corporate and prosumer segments in India. Given our passion for innovation and speed, Airtel has now identified the need to offer a more affordable choice to the Prosumers who were earlier unable to experience the combined power of Airtel and BlackBerry."

Hutch-Essar:Panel starts hearing on BPL merger

An arbitration panel has started proceedings to resolve the tussle between Hong Kong-based Hutchison Telecom International and domestic corporate Essar, the two partners in Hutchison Essar, over the merger of BPL (Mumbai) circle in the mobile joint venture.

The panel, headed by retired Justice R S Pathak, met here yesterday for the first time. The panel is likely to announce a decision in 45 days, sources said.

Retired Supreme Court chief justice S P Bharucha represented Essar, while another former judge of the apex court Justice B N Srikrishna appeared for HEL's side.

The merger of BPL with the mobile joint venture HEL had become a bone of contention between Essar group and HEL, with Ruias maintaining that the JV had failed to get Department of Telecom's approval within the stipulated time.

After a prolonged legal battle, the Mumbai High Court had directed both the parties, Essar and Hutchison-Essar, to resolve the dispute through arbitration, while restraining Ruias from selling the BPL (Mumbai) circle to any third party.

Now that shareholding of Hutchison-Essar has undergone a change with HTIL getting into an agreement with Vodafone to sell its 67% stake in HEL, the resolution of this issue has assumed significance.

Essar and Vodafone have already started discussions over the partnership and terms of new shareholders' agreement.
When contacted, company officials declined to comment.