Bharti to buy 49% in Qualcomm India broadband

 India Broadband:
India's largest mobile telecom service supplier Bharti Airtel on Thursday announced the acquisition of forty ninth stake in US large Qualcomm's broadband wireless access (BWA) business, conjointly known as 4G services, in India for $165 million ( Rs. 922 crore). The company's shares rose five.6% to Rs. 298 on the
Bombay Stock Exchange following the news.

The acquisition can offer Bharti access to four telecoms zones, as well as the lucrative Delhi and Mumbai, where it doesn't have its own 4G services. the corporate recently launched industrial 4G networks in Kolkata and Karnataka.

Qualcomm acquired spectrum for BWA in 2010 for Rs. 4,912.5 crore through the auction route. It holds spectrum in Delhi, Mumbai, Haryana and Kerala. Though the precise financials aren't known, the enterprise valuation is around $1.2 billion. the corporate features a debt of concerning Rs. 5,000 crore.

A statement by Bharti Airtel said that it had acquired forty ninth interest in Qualcomm's India entities for BWA licenses "partly by method of acquisition of twenty sixth equity interest equally held by world Holding Corporation Pvt Ltd and Tulip Telecom Ltd, and therefore the balance by method of subscription of recent equity in those entities."

"The agreement contemplates that when industrial operations are launched, subject to bound terms and conditions, Bharti would assume complete possession and monetary responsibility for the BWA entities by 2014 finish," said the statement.

Bharti acquired BWA licenses in Kolkata, Karnataka, Punjab and Maharashtra and 3G licenses in 13 circles in India in 2010. It will currently supply 3G/4G services in eighteen circles.

"This partnership can mix the strength of Bharti's national telecom footprint and Qualcomm's technological leadership within the LTE TDD area," said Sunil Bharti Mittal, chairman and MD, Bharti Airtel. "With a broadband-ready network across India, Bharti is well positioned to steer consecutive part of Indian's telecom revolution."

"One of our key objectives has been to incorporate a powerful partner within the Indian venture with the size, expertise and resources to deploy LTE TDD networks," said Paul E Jacobs, chairman and CEO, Qualcomm.
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