Hutchison Essar Telecom Limited

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In 1993, Sterling Cellular Limited was awarded a GSM license for Delhi (including Ghaziabad, Noida, Faridabad, and Gurgaon) by Government of India’s Department of Telecommunication. The company committed to pay US$3.66 million in license fees for Delhi circle during the first three years of operations and US$140 per subscriber per year thereafter. The license was later extended to a 15 year term. The company has since undergone numerous ownership changes. In December 1999, Hutchison Telecommunications International Limited acquired 49 percent of the equity shares in Sterling Cellular Limited from Swisscom AG and other foreign shareholders. Essar group owned the balance 51%. Sterling Cellular Limited was later renamed Hutchison Essar Telecom Limited (HETL). In February 2005, Hutchison Group consolidated all its mobile operations in India into its Mumbai subsidiary Hutchison Essar Limited (HEL), formerly called Hutchison Max Telecom Limited (HMTL). As of June 2006, Hutchison Telecommunications International Limited (HTIL), subsidiary of Hong Kong’s Hutchison Whampoa Group, had 67% equity stake in HEL and the balance was held by India’s Essar Group. The company initially launched its service in January 1996 and marketed under the brand names of Essar or Essar cellphone. After the Hutchison acquisition, HETL offered its services under the brand name Hutch. As of December 31 2004, HETL had 1.41 million subscribers in the Delhi region. For 2004, Investment figures are combined for the Hutch Essar group and is reported under Hutchison Max Telecom Limited None