Bharti Airtel, India’s largest mobile operator, is in talks about the acquisition of a 26% stake in Qualcomm’s Indian BWA venture, according to local newspaper Business Standard, referring to unnamed sources.
Qualcomm owns 74% in the business, and…
Bharti Airtel, India’s largest mobile operator, is in talks about the acquisition of a 26% stake in Qualcomm’s Indian BWA venture, according to local newspaper Business Standard, referring to unnamed sources.
Qualcomm owns 74% in the business, and Bharti could acquire the remaining 26% stake currently equally split between local telecoms services provider Tulip Telecom and telecoms holding company Global Group.
Qualcomm sold the stake to those two companies in July 2010 in order to comply with foreign direct investment caps in the country.
Just days ago, Qualcomm finally received 4G spectrum in four circles after almost two years of delay because of a dispute with the telecoms ministry.
The Business Standard wrote that once Qualcomm sells a 26% stake in the venture, it will slowly divest its remaining interest in the company. The deal value could reach as much as US$1.3bn for the whole venture, according to The Economic Times.
This move would be in line with Qualcomm’s strategy announced in 2010. The company had said at the time it planned to exit the venture after rolling out the network.
With the spectrum now awarded, services are reportedly expected to start within the next six months.
Qualcomm and Bharti Airtel could not be reached for comment, while Tulip declined to comment on market speculation.