The Ruias are joining a long list of Indian promoters who have exited telecom — including Mr B.K. Modi (Spice Telecom) Mr Rajeev Chandrasekhar (BPL Mobile) and the Nandas (Escotel).

The Ruias were among the first to take mobile service licences after the Government had opened up the sector in 1992. But after nearly 20 years, the Ruia brothers found it best to exit.

“It also indicates that going forward the telecom market is going to get tougher wherein global players such as Vodafone is more suited to fight it out,” said an analyst.

Over the past five years a number of Indian entrepreneurs have got out of the telecom sector. In 2004, Idea Cellular snapped up Escotel from the Nandas in a deal valued at Rs 1,200 crore.

Vodafone Essar itself changed hands a number of times. The company was established in 1992 by Hutchison Whampoa and Max Group and was named Hutchison Max.

Mobile services were launchedunder the brand Max Touch which was later changed to Orange in 2000. The company acquired several mobile operators, including Mr Chandrasekhar’s BPL Mobile. In 2002, Max Group exited the venture and Essar Group, which had licences in about 10 circles, became the Indian partner. In 2007, Hutchison sold its stake to Vodafone.

But market watchers said that this may not be the end of Ruias’ presence in the telecom space.

The Essar Group owns telecom retail chain Mobile Store. It also has a minority stake in Loop Telecom, which has mobile licences for 22 circles.

But since 2008, the company is being investigated for allegedly taking the permits illegally. If Loop Telecom manages to wriggle out of the investigation, the Ruias may make a comeback into the sector.

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