Hutch Telecom delays Indian IPO

Posted on | April 11, 2005 |

Hutch has pushed the IPO of its Indian unit, expected to raise roughly US$350-$500 million, into the second half of this year due to regulatory uncertainty.

HTIL, which positions itself as an emerging markets Vodafone, is looking for opportunities in Asia, the Middle East and Eastern Europe. Besides India, it operates in Hong Kong, Thailand, Israel, Ghana, Paraguay, Sri Lanka and Macau.

But it is HTIL’s business in India, where it holds roughly 15 percent of the 52 million-user market, that offers the greatest promise. Only five in 100 people in India have a cellphone, compared with over a quarter in China, the biggest mobile market.

Though India has the world’s lowest tariffs, it is profitable given high volumes, low costs and few handset subsidies.

Comments