Emirates Telecom’s – Etisalat US$900 mn investment into Swan Telecom as an important development for the Indian wireless sector in a variety of ways.

  • the equity infusion will enable Swan to raise debt and fund its initial roll-out ambition in
    the 13 circles where it has licenses
  • the deal will likely provide a benchmark and accelerate further investments in some of the new licensees
  • increased certainty of at least one new licensee in the competitive mix may intensify the subscriber-grab tactics

The transaction values Swan Telecom at US$2 bn. Etisalat operates in Pakistan, which will invite intensive scrutiny by the the Indian Foreign Investment Promotion Board and the approval may not be in place soon going by the current political situation. Recall what had happened to Orascom when it bought stake in Hutchison which gave the former an indirect control in Hutch India.