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Hutch Kills BPL Mumbai merger

August 2nd, 2006

It is very well known fact that Hutchinson Essar is now considered as a shady telecom operator, after a series of bad deals in the last few months. Essar group is particularly upset with Hutchinson management after Orascom bought stake in Hutchinson Whampooa which gave it a 10% indirect stake in India.

BPL Mobile is one of the leading service providers in Mumbai but lately has been losing customers rapidly. BPL was supposed to be merged into Hutch Essar, but due to series of Intra-Circle restrictions like spectrum and others by DOT, the merger faced lot of hurdles. Essar decided to exercise its right(Hutch as well as essar had the option) to KILL the BPL inclusion into Hutch Essar after DOT failed to complete the approval proces by midnight of July31st. Growing unrest between Hutch and Essar executives has now taken the battle to the court of law. Meanwhile Hutch is offering key BPL Mumbai executives to join Hutch.

Everybody knows that in the era of mega corporations BPL Mobile can’t just operate in Mumbai. Does Essar have any plans to run BPL Mumbai or SELL it ? Keep your fingures crossed until the court and DOT verdict.

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