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Vodafone deal with Hutch ends bizzarrely

Docomo withdraws i-mode from India
Tue May 08 2007, 09:29
WHAT A strange conclusion to Vodafone's triumph in the Indian mobile arena. It's landed the deal to take over Hutch (Hutchison Essar) but lost the rights to i-mode.

In a very terse statement, Japanese giant NTT Docomo has pulled the plug on a deal announced back in December 2006. The aim had been to utilise Docomo's proprietary i-mode system to provide a mobile Internet service in India.

Now that Vodafone has finally won out and taken control of Hutch, Docomo says Hutch has "agreed not to proceed" with i-mode.

Which is a bit strange. Vodafone's Live! rival to i-mode has hardly set the world alight. But then i-mode - which is a whole eco-system rather than just a markup language- requires a fairly high level of commitment from its operators.

After a whole heap of twoing an froing, the Indian government satisfied itself last week that its rules over foreign ownership of a telecoms company hadn't been breached. Even though Vodafone would still appear to have options to increase its stake. ยต

See also Further glitch in Vodafone Hutch deal arises

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