29 October, 2005

Airtel- Vodafone Deal

This strategic partnership caught my eyes today. India is well connotated as fastest developing telecommunication market. Vodafone interests in Bharti will be a symbiotic one. while bharti can establish 3G space with the help of vodafone, the latter got a sizable pie in India's telecom share. Sunil Mittal's turnaround story is an impressive one. (Will blog about his rags to riches story soon). He is great role model for all first generation entrepreuners. His business moves are closely watched by world Telcos. Bharti is first co to outsource the core teleco activities like switches maintanence and billing. Sunil always says about exiting Telecom field in his age of 50. Bharti is venturing to fresh vegetables market, infrastructure field. Its on diversifying spree. P/E of Bharti Televentures is around 150+, while rest of sensex shares are on industry average (17-20). Yesterday when Airtel-Vodafone deal was announced in the market, BTV's share rose among the free fall in prices of other sensex shares. (Sensex is in corrective mode now, due to "Foreign funds exodus" -courtesy ET).

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