Emerging markets phone company Hutchison Telecom's Indian mobile telephony business contributed about 49% of the company's operating profit in the first half of 2006 and helped cushion its start-up costs in other markets such as Indonesia and Vietnam.Hutchison Telecom, a member of Hong Kong's Hutchison Whampoa Group, recorded an operating profit (EBIDTA) of HK $ 4.7 billion (Rs 2,773 crore), in the first half of 2006, of which the Indian operation under the Hutchison Essar banner contributed HK $ 2.3 billion ( Rs 1,357 crore).The Indian operations also contributed 45% of Hutchison Telecom's turnover of HK $ 15.5 billion ( Rs 9,145 crore) in the first half of 2006. Hutchison Essar's turnover in India in the first half of 2006 was HK $ 7.08 billion (Rs 4,602 crore), driven largely the 108% year-on-yeargrowth in customer base to 17.5 million. The sharp rise in customer base was partly on account of the purchase of BPL's telecom business in Maharashtra, Tamil Nadu and Kerala telecom circles.Hutchison Telecom's operations are confined to East Asia, Israel and India. Following India, Hong Kong and Macau market provided it with the largest share of operating profit at HK $ 1.07 billion. However, the Hong Kong operations included fixed line and 3G, neither of which Hutchison Essar offered in India.Hutchison Telecom had earlier indicated that its Indian arm would raisecapital through a public issue of shares this year. Subsequently,differences arose between Hutchison and its partner Essar group over share transfer and shareholding structure.Following the announcements of its half yearly results, Hutchison Telecom's Chief Executive Officer, Dennis Lui, said their ties remained harmonious, but Hutchison Telecom will have a final say on Hutchison Essar."We are in control of Hutchision Essar since we own 67 percent of thecompany. So we have the ultimate say. I think both of our interests are togrow the value of the business," he said.Hutchison Telecom also said it planned to invest HK$13.5 billion to HK$14.5 billion during 2006, mainly to build up its networks in India, Vietnam and Indonesia.
