Bharti acquires 49% in Qualcomm's broadband venture

nrj · 24-05-12, 05:44 PM

New Delhi: Bharti Airtel Ltd, India’s largest telecom services provider, said that it had signed an agreement with US-based Qualcomm Inc. to buy a 49% stake in the latter’s Indian broadband wireless access (BWA) companies for an initial investment of about $165 million.

Under the agreement, Bharti will buy the stake in the companies that hold BWA spectrum in Delhi, Mumbai, Haryana and Kerala. The transaction includes acquisition of 26% equity held by Global Holding Corp. Pvt. Ltd and Tulip Telecom Ltd. The remaining portion will be acquired by buying new shares in the BWA entities.

“The agreement contemplates that once commercial operations are launched, subject to certain terms and conditions, Bharti would assume complete ownership and financial responsibility for the BWA entities by the end of 2014,” Bharti said in a statement.

BWA spectrum allows a service provider to offer fourth generation or 4G high-speed Internet services based on the TD-LTE (time-division long-term evolution) technology standard.

Bharti has already introduced a LTE-based services in Kolkata and parts of Karnataka, including Bangalore.

The acquisition essentially doubles Bharti’s existing BWA footprint where it has BWA spectrum - Kolkata, Karnataka, Punjab and Maharashtra, taking the total number of circles to eight.

Bharti also has 3G spectrum in 13 licensing areas in India, apart from 2G services across the country.

“With this agreement, Bharti has secured a nation-wide broadband leadership through a combination of 4G and 3G, with its own networks in 18 circles,” Bharti said.

Bharti to buy 49% in Qualcomm India broadband venture - Corporate News - livemint.com

nrj · 24-05-12, 06:46 PM

Bharti Airtel, Qualcomm seal 4G partnership

Commenting on the partnership Mr. Sunil Bharti Mittal, Chairman and Managing Director, 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.” “One of our key objectives has been to include a strong partner in the Indian venture with the scale, experience and resources to deploy LTE TDD networks. We are pleased to have Bharti’s participation and support in this effort,” said Dr Paul E Jacobs, chairman and CEO of Qualcomm. “GHC and Tulip have been great partners in facilitating this transaction. Qualcomm remains dedicated to the continued progress and success of the BWA venture and to fulfilling our commitment as a key equity stakeholder.”

Qualcomm expects to provide technical assistance to Bharti in connection with network architecture and optimization, infrastructure and device testing, as well as continuing to develop and support the underlying technology and the LTE TDD ecosystem.

sob · 25-05-12, 01:08 AM

Buy Bharti airtel shares. This is a very smart move and will checkmate reliance plans for 4G.

Galaxy · 25-05-12, 01:49 AM

Telecom sector doesn't like attractive anymore. Operating profit is very less. Balance sheet looks dull. The scrip will consolidate for some more time before it starts upward journey. I sold my stocks last year only.

Galaxy · 25-05-12, 02:15 AM

2002-03 was the best time to invest in Telecom sector. Bharti moved 30 times in 6 years 2002-2008. In last 6 years, 0 times. It's in range 250-450 for last 6 years. I bought in 2008 during market crash. After Holding for 3 years, I sold at cost price only. Most frustrating stock.

Today competition is so tough that profit margin is very less. Sector is very much saturated. The initial cost is so much that it takes long time to recover. Telecom boom was good for consumer but not for the company anymore. Although, Bharti is expanding it's business but it will take long time to establish in other domain. IPTV, Insurance, DTH are still not profitable. Only positive thing is company is trustworthy and reliable. So, whenever telecom sector will do well, It will be always Bharti.

sob · 25-05-12, 10:12 AM

Galaxy this stock is not for profit making in the short term. This is a long term bet. the growth has been phenomenal, it has got it's fingres in the correct pies, the growth can only be in the upward direction.

sob · 25-05-12, 04:24 PM

Qualcomm buy will give Bharti nationwide leadership in 4G | Firstpost

Bharti Airtel, on Thursday agreed to buy a 49 percent stake in Qualcomm’s fourth-generation (4G) broadband venture in the country for Rs 907 crore, in a move that would give India’s biggest mobile phone carrier a national footprint in broadband through a combination of 4G and 3G networks. In 4G, it also becomes the top rival to Reliance Infotel.

The acquisition will give Bharti access to four telecoms zones, including the lucrative Delhi and Mumbai cities, where it does not have its own 4G airwaves. Bharti already has broadband wireless association (BWA) licences in four circles — Kolkata, Karnataka, Punjab and Maharashtra for which it paid Rs 3,316.4 — and 3G licences in 13 circles. The company recently launched commercial 4G networks in Kolkata and Bangalore cities.

With this agreement, Bharti has secured a nationwide broadband leadership through a combination of 4G and 3G, with its own networks in 18 circles. Qualcomm, which was embroiled in a dispute with the telecom ministry, was granted 4G airwaves this month, nearly two years after it won them in the auction. The ministry cut the usage period of the airwaves by 18 months to 18.5 years though.

IIFL telecom analyst GV Giri told CNBC-TV18 the acquisition is a positive move for the long-term and offers Bharti the ability to exploit the impact of inevitable explosion of data in India. He maintained a buy call on the stock despite the downturn and said the company will be able to monetise revenues after two-to-three years.

Bharti acquires 49% in Qualcomm's broadband venture

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