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Vodafone

Why Vodafone should purchase an Indian mobile telecommunications company.

Table of Content

1 Statement of Purpose

2 Hypothesis

3 Assumptions

4 Background

5 Data

6 Analysis

7 Conclusions

Statement of Purpose

My job as the chief consultant at IBN Consultancy Service is to prove to Arun Sarin, CEO of Vodafone if purchasing an Indian mobile telecommunications company will financially benefit Vodafone. I have to prove to Mr. Sarin why at this moment India is one of the best countries to invest in and some of the telecommunications companies in India that are good candidates. Finally, I have to prove to Mr. Sarin which company in my opinion is the best choice and provide him with supporting data to back my choice of target country and best candidate.

Hypothesis

India a good target country, that Vodafone should purchase a telecommunications company. At this moment India has the fastest growing cell phone market in the world. It adds more than six million new subscribers each month, that is more than China. Currently, only 13 percent of India’s population owns a mobile phone, meaning its market is not saturated and there is plenty of room to grow. It has a population of more than 1.1 Billion people, but only 135 Million subscribers, the number of subscribers are expected to grow to about 450 Million by 2010.
On the other hand China is already 50 percent penetrated and its growth rate is slowing down. Meanwhile, all of Vodafone major markets are saturated; the telephone density in Europe is over 100 percent and the US market is 76percent saturated. India at this moment is one of the few countries in the world that can give Vodafone what it desperately need, that is growth in its mobile telecommunications market.
The political risk in India is lower than China and the government just increases the cap it placed on the ownership of Indian telecommunications company by foreign multinational corporation from...