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Bharti buys 49% of Qualcomm’s India unit
25 May 2012
Bharti Airtel will buy 49% stakes in Qualcomm’s Indian broadband wireless unit and aims for 100% by 2014
Bharti Airtel has signed an agreement with Qualcomm to buy 49% stake in Qualcomm Asia Pacific’s Indian broadband wireless access unit, with Bharti making an initial investment of $165 million. The business will launch LTE services using the spectrum-efficient TDD technology.
Sunil Bharti Mittal, chairman and managing director of Bharti Airtel, said, “We are delighted to partner with Qualcomm, who shares our commitment to the government’s agenda of broadband for all. This partnership will combine the strength of Bharti’s national telecom footprint and Qualcomm’s technological leadership in the LTE TDD space. With a broadband ready network across India, Bharti is well positioned to lead the next phase of Indian’s telecom revolution.”
Bharti will acquire the 26% stake held equally by Global Holding Corporation and Tulip Telecom, while acquiring the remaining 23% by subscription of fresh equity in the unit, Qualcomm said.
The agreement contemplates Bharti taking over complete ownership and financial responsibility for the unit by the end of 2014, once commercial operations commence.
Airtel has BWA licences in Kolkata, Karnataka, Punjab and Maharashtra and 3G licences in thirteen circles in India. GTB
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