Etisalat to Get 4.67% Indirect Stake in Vodafone Idea

The UAE (United Arab Emirates) based telecom major had made its entry into India back in 2008. But the company had to shut shop because the Supreme Court had cancelled around 122 telecom licenses owing to the 2G scam.

Highlights

  • The Emirates Telecommunications Group (Etisalat) will be getting an indirect 4.67% stake in Vodafone Idea (Vi).
  • Etisalat will be making an entry into the Indian telecom market yet again.
  • Etisalat had stopped operations in India on February 2012. This had affected around 16.7 lakh Indian subscribers at the time.

Follow Us

Etisalat

The Emirates Telecommunications Group (Etisalat) will be getting an indirect 4.67% stake in Vodafone Idea (Vi). Etisalat is getting a 9.8% stake in the Vodafone Plc UK for $4.4 billion. Note that Vodafone Plc already owns around 47% stake in the Indian telco Vodafone Idea. Thus, Etisalat will also get an indirect 4.67% stake in Vodafone Idea.




Etisalat will be making an entry into the Indian telecom market yet again. But this time, it would be with Vodafone Idea’s stake, which the company will get on an indirect basis. It is unknown whether Vi will get a direct investment from Etisalat.

Etisalat Had Exited Indian Telecom Market in February 2012

The UAE (United Arab Emirates) based telecom major had made its entry into India back in 2008. But the company had to shut shop because the Supreme Court had cancelled around 122 telecom licenses owing to the 2G scam.

Thus, Etisalat stopped operations in India in February 2012. This had affected around 16.7 lakh Indian subscribers at the time. The company had said that its future participation in India would come again only when there are clear rules around the spectrum auctions.

But after a few years from 2012, India’s telecom sector wasn’t left as a very fertile ground for the investors as Jio’s entry had turned the market upside down. But right now, with investments allowed under the 100% FDI (foreign direct investment) route in the telecom sector, Etisalat could pick up more stake in Vodafone Idea (Vi), which is already looking for external investors to raise capital for increasing capex levels.

The telecom sector has also become a lot more stable for investors to look at from a short-term to medium-term perspective. Reforms 2.0 are also in the process of being introduced, which will aid the telecom sector further in doing better business. More developments should come in the following days.

Reported By

Editor in Chief

Tanay is someone with whom you can chill and talk about technology and life. A fitness enthusiast and cricketer, he loves to read and write.

Recent Comments

Anonymous :

In line with Airtel's ?49 plan that offers 20GB of data for the same duration.

Jio Brings New Rs 49 Plan

Faraz :

Yes.. Corruption and arrogance is in the core of this organisation since beginning.. & Now even gov wants everything to…

BSNL's Operating Profits Signal a Positve Future

Mrs Mithilesh :

BSNL DoT aur ITS ka gulam hai, BSNL ke executives aur staff ki halat gulamo aur kutto se bhi battar…

BSNL's Operating Profits Signal a Positve Future

TheAndroidFreak :

Till BSNL doesn't make 5Mhz of band 1/28/8 live across country, it doesn't make sense. Vi is far better operator…

Vodafone Idea Tests Vi AirFiber with Multiple Partners

Faraz :

In my experience. Airtel 4G went down to 20-30 Mbps where it used to 50-70 Mbps on b3+b40 CA. Jio…

5G Users Consuming 3.6 Times More Data than 4G Users…

Load More
Subscribe
Notify of
6 Comments
newest
oldest most voted
Inline Feedbacks
View all comments