Bharti acquires 49% in Qualcomm's broadband venture

Discussion in 'Economy & Infrastructure' started by nrj, May 24, 2012.

  1. nrj

    nrj Stars and Ambassadors Stars and Ambassadors

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    :shocked:

    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
     
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  3. nrj

    nrj Stars and Ambassadors Stars and Ambassadors

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    Bharti Airtel, Qualcomm seal 4G partnership

     
  4. sob

    sob Moderator Moderator

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

    Galaxy Elite Member Elite Member

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    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. :sad:
     
  6. Galaxy

    Galaxy Elite Member Elite Member

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    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.
     
  7. sob

    sob Moderator Moderator

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    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.
     
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  8. sob

    sob Moderator Moderator

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

     

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