Bharti Mobile (Merged with Bharti Cellular Limited)

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Bharti Mobile, originally known as JT Mobile, operates in Andhra Pradesh, Karnataka and Punjab. It operated under the brand names Airtel (post-paid) and Magic (pre-paid). JT Mobile was originally owned by Jasmine of Thailand (13%), Telia AB (26%), the state-owned Telephone Organization of Thailand (10%), United Telecom Limited (31%) and the Sanmar Group (20%). In 1999 the Bharti Group acquired 74% of the company and Telia retained its 26%. Following this acquisition, the company's name was changed from JT Mobile to Bharti Mobile to reflect the new ownership structure. In 2003, Telia sold its 26% stake to Bharti Cellular, making Bharti Mobile a 100% subsidiary of Bharti Cellular, which in turn is a wholly-owned subsidiary of Bharti Tele-Ventures Limited, the holding company for the Bharti group's cellular mobile ventures. The Andhra Pradesh license was valid for 20 years (original period was for 10 then 15 years) from December 22, 1995. The company launched its services in Andhra Pradesh in January 1997. The Karnataka license is valid for 20 years (original period was for 10 then 15 years) beginning February 15, 1996. The company launched its services in Karnataka in November 1996. The company was obliged to pay US$254.8 million and US$369 million for its licenses in Andhra Pradesh and Karnataka licenses, respectively, over a 10 year period. Bharti Mobile's commitment up to July 1999 was US$285.7 million for its license fee obligations prior to switching to the government’s new revenue sharing system. The Punjab license was valid for 20 years from December 26, 1999. Bharti acquired this from Evergrowth Telecom. Evergrowth Telecom was initially awarded a 10 year license to operate cellular services in April 1996. The cellular project in Punjab commenced commercial operation in August 1997 and had a subscriber base of 5,000 by end of 1998. Prior to this, the license was terminated on a few occasions. When Evergrowth was awarded the license in 1996, it committed to pay US$353.6 million in licenses fees over a 10 year period but experienced difficulties meeting the requirements. The company experienced serious financial difficulties in 1998 due to the low subscription base and unpaid-license fee dispute. In 1998, the license was reinstated after these conditions were met, but there remained disputes over license fees due to DoT in from the period of April 1996 to March 1998 on the order of roughly US$100 million. Prior to migration to a new revenue sharing arrangement in 1999, the company was obliged to pay US$108.59 million in license fee payments. Despite this, the company invested US$33.5 million to expand the network in Punjab in July 2000. In April 2001, the DoT began arbitration hearings against the company over the license fees. In September of 2001, the company's license to offer basic telecom services in Punjab was restored once again. Entry fee was US$144 million and cost of the license itself was US$102.3 million. 2004 - investment and connection figures consolidated in Bharti Cellular Limited. Sent fax 91 80 228 2200 to Mr. Jagdish Kini 7/18/2003 See hidden record #1506 for Evergrowth Telecom See www.essar.com/telecom/telecom_ever.asp See http://www1.ifc.org/ar2002/pdf/FY2002Commitments.pdf INVESTMENT FIGURES In 1997, Evergrowth had invested $114.5m in license fees and $34m in facilities. In 1998, Bharti Mobile received a Rs340 crore (about $79.7 million) loan from the Industrial Development Bank of India to expand its services and develop the optic fiber backbone across Karnataka and Andhra Pradesh. The Swedish partner Telia invested some SKr220 million (US$27.5 million) by the end of 1998. In 1999, Bharti had invested Rs 200 crore (USD46.0m). Of this, Rs 110 crore was invested in a 3,000km fiber optic network that will be used for long distance traffic and the remainder was used for equipment. This was in addition to the Rs 250 crore (USD57.5m) used to obtain the licenses for Karnataka and Andhra Pradesh. In 2000, Evergrowth had invested $33.5m in the network. In June 2001, Bharti Mobile raised Rs 2.1 billion (USD44.7m) in a secured non-convertible debenture issuance. The multi-tranche issue included the following coupons and tenors: 10.55% for the 5 year tranche, 10.9% for the 8 year tranche, and 11.45% for the 10 year tranche. The bond issuance has a partial credit guarantee from the IFC for up to 76% of the bond issue and backs up the parent company's, the Bharti Group, guarantee for debt repayment. In August 2001, the IFC made investments at two levels. The first level was for up to US$50 million in an IFC partial guarantee of a local currency debenture issued by Bharti Mobile. The second was up to $20 million in an IFC equity investment in the Bharti Group at a holding company level. INVESTMENT FIGURES In 1997, Evergrowth had invested $114.5m in license fees and $34m in facilities. In 1998, Bharti Mobile received a Rs340 crore (about $79.7 million) loan from the Industrial Development Bank of India to expand its services and develop the optic fiber backbone across Karnataka and Andhra Pradesh. The Swedish partner Telia invested some SKr220 million (US$27.5 million) by the end of 1998. In 1999, Bharti had invested Rs 200 crore (USD46.0m). Of this, Rs 110 crore was invested in a 3,000km fiber optic network that will be used for long distance traffic and the remainder was used for equipment. This was in addition to the Rs 250 crore (USD57.5m) used to obtain the licenses for Karnataka and Andhra Pradesh. In 2000, Evergrowth had invested $33.5m in the network. In June 2001, Bharti Mobile raised Rs 2.1 billion (USD44.7m) in a secured non-convertible debenture issuance. The multi-tranche issue included the following coupons and tenors: 10.55% for the 5 year tranche, 10.9% for the 8 year tranche, and 11.45% for the 10 year tranche. The bond issuance has a partial credit guarantee from the IFC for up to 76% of the bond issue and backs up the parent company's, the Bharti Group, guarantee for debt repayment. In August 2001, the IFC made investments at two levels. The first level was for up to US$50 million in an IFC partial guarantee of a local currency debenture issued by Bharti Mobile. The second was up to $20 million in an IFC equity investment in the Bharti Group at a holding company level. INVESTMENT FIGURES In 1997, Evergrowth had invested $114.5m in license fees and $34m in facilities. In 1998, Bharti Mobile received a Rs340 crore (about $79.7 million) loan from the Industrial Development Bank of India to expand its services and develop the optic fiber backbone across Karnataka and Andhra Pradesh. The Swedish partner Telia invested some SKr220 million (US$27.5 million) by the end of 1998. In 1999, Bharti had invested Rs 200 crore (USD46.0m). Of this, Rs 110 crore was invested in a 3,000km fiber optic network that will be used for long distance traffic and the remainder was used for equipment. This was in ad