Bharti acquires 49% stake in Qualcomm India’s BWA entity
Bharti has acquired 49% stake in Qualcomm Asia Pacific’s (Qualcomm AP) Indian BWA entity.
Bharti already has BWA licenses in four circles – Kolkata, Karnataka, Punjab and Maharashtra – and 3G licenses in thirteen circles in India. 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.
Under the agreement, Bharti has made an initial investment of approximately USD 165 million to acquire 49 percent interest in Qualcomm AP’s India entities that hold BWA licenses in Delhi, Mumbai, Haryana and Kerala – partly by way of acquisition of 26 percent equity interest equally held by Global Holding Corporation Private Limited and Tulip Telecom Limited, and the balance by way of subscription of fresh equity in those 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.
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.
It took Qualcom 18 months to get the BWA license