Vodafone’s Indian branch nears 140m subscribers
VODAFONE’S Indian unit, the country’s third-biggest mobile carrier, added 2.45m subscribers in May, taking its total to an eye-watering 139.4m.
The world’s largest network operator by revenue has seen the business surge despite being dogged by an ongoing tax dispute with Indian authorities.
Once the dispute, which focuses on the $11.2bn (£6.9bn) purchase of Hutchison Telecom’s Indian business in 2007, is settled, Vodafone has signalled it will seek to list a stake in the venture to bring it in line with Indian foreign ownership rules. Vodafone’s partner Essar Group opted to exercise an option to sell a 33 per cent stake in the venture, pushing Vodafone over the limit.
The telecoms group was boosted yesterday by more speculation that its relations with US joint venture partner Verizon have thawed and that an elusive dividend could resume next year. Analysts at JP Morgan also said they expect Vodafone’s first quarter results, due next month, to support its forecasts for full year profits. The note is also bullish about the performance of Verizon.