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The Story of the Cellular Phone Brand Orange

"Orange is something I did in the 20th century".

- Canning Fok, Managing Director, Hutchison Group, commenting on the company's plan to relinquish the Orange brand.

"The new jewel in our crown will be the India business. We will consolidate this portfolio before listing in the next twelve to eighteen months".

- Canning Fok, Managing Director, Hutchison Group, December 2000.

By the end of 2000, the sun seemed to be setting on the Hutchison empire in India, or at least on its Orange1 brand.

Hong Kong-based cellphone operator Hutchison Max Telecom,2 which owned the popular Orange brand in Mumbai (India) might soon have to give it up in favor of the city's second operator, BPL-France Telecom.

France Telecom, which acquired worldwide rights for the Orange brand in May 2000 from Vodafone3, was planning to enforce its ownership of the brand in India in a bid to cash in on the popularity of the brand.4

France Telecom was keen on using the brand via its joint venture with BPL5 in Mumbai.

The Story of the Cellular Phone Brand Orange - Next Page >>>

1] Orange was formed in the UK in 1989, with the launch of Hutchison Telecom to target the growing telecommunications
Industry.

2] Hutchison Max Telecom was a part of the Hutchison Whampoa group. Hutchison Whampoa Limited (HWL) was a
 Hong Kong based Industrial Conglomerate, and had a presence in telecommunications, property development
 and holdings, retail, manufacturing and services and energy, infrastructure, finance and investment. Hutchison Max
Telecom was the largest cellular provider in India, covering Mumbai, Kolkata and Gujarat. In April 2000, it had a
 subscriber base of 4.55 lakhs, compared to BPL's 3.5 lakhs and Bharti Enterprises' 3.2 Lakhs.

3] A major cellular operator in the UK.

4] Orange had gone through changes of control in recent past. Till 1999, Hutchison retained a majority stake in the
 company. This stake was sold to Mannesmann of Germany in late 1999, who eventually acquired all of the shares in
 the company. In early 2000, the European Commission approved Vodafone's purchase of Mannesmann with the
 proviso that they sell Orange. The European Commission did not allow Vodafone to own two competing phone
 companies .By the end of May 2000, Vodafone sold Orange to France Telecom. However, through an earlier
agreement with Vodafone, Hutchison Max acquired the license to use the Orange brand in India. Hutchison Max
would pay a royalty to the owners of the Orange brand.

5] France Telecom had a direct 26 per cent holding in cellular operator BPL Mobile.

Case Details

Case Code : BSTR002
Themes: Brand Management
Case Length : 8 Pages
Period : 1995-2001
Organization : Hutchison Telecom, BPL
Pub Date : 2001
Teaching Note : Available
Countries : India
Industry : Telecommunications

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