(adding matter in para seven)

By Staff
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Google Oneindia News

New Delhi, Feb 14 (UNI) British telecom giant Vodafone Group Plc today said it will invest two billion dollars over the next two years to penetrate the almost untapped rural India and provide better services.

''Hutch-Essar is the biggest company in the Vodafone Group in terms of subscriber base. This two billion dollar investment will boost the teledensity in India,'' Vodafone CEO Arun Sarin told reporters on his first visit to the capital after announcing the take over of India's fourth largest mobile player.

Telecom penetration in India at present stands at 14 per cent, Mr Sarin said, adding that his company intends to make Hutch-Essar the country's number one player with a target of 100 million customers over the next few years.

Currently, Hutch-Essar has a subscriber base of 23 million with one million subscribers added every month.

''We are committed to India's vision of 500 million subscribers by 2010. For this we want Essar's participation.

Hutch-Essar will reach the 35 million mark within one year,'' he said.

The Vodafone Chief also said the Essar group -- which holds 33 per cent stake in Hutchison Essar -- does not have the right of first refusal over its deal to buy a controlling stake in the latter.

''We want the Essar Group to continue. Mr Asim Ghosh, the current head of Hutchison Essar, is a very good CEO and a very good leader. He founded the firm. We are very happy with him.

He will continue in that role,'' Mr Sarin said.

He refuted claims of taking any legal action against the Essar Group in case the latter plan to quit the JV saying that ''we are here (in India) and intend to be here for a long time''.

Mr Sarin said more services like cheaper call rates, handsets, banking and money transfer services will be provided in the country.

The transaction is expected to be completed in about two months, including obtaining all regulatory approvals.

While Vodafone had bid 11.1 billion dollars for the Hong Kong-based Hutchison Telecom's (HTIL) 67 per cent stake in the mobile venture, it actual stake acquisition would be only 52 per cent as the remaining 15 per cent is held by minority Indian shareholders who have opted to continue as partners.

UNI

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