Qualcomm in talks to sell stake in broadband unit

US-based chip maker Qualcomm, which has BWA licences for offering services in four circles, has renewed talks with various telecom players to sell majority stake in its broadband venture.

Qualcomm had formed its India broadband unit after bagging Broadband Wireless Access (BWA) spectrum (radio waves) in four circles -- Delhi, Mumbai, Haryana and Kerala for about $1 billion in auctions held in June last year.

"Qualcomm has publicly stated that it will work with 3G operators to develop the 3G+LTE ecosystem, commercially deploy LTE TDD in the BWA spectrum, and then exit its India LTE venture," a Qualcomm spokesperson told PTI today.

Consistent with those goals, discussions with 3G operators in India on LTE TDD commercialisation and commercial discussions related to Qualcomm's BWA spectrum are indeed ongoing, the spokesperson added.

Media reports said that Qualcomm has entered into a $1.2 billion deal to sell its BWA spectrum in four circles to a private telecom operator.

"The discussions are confidential and Qualcomm cannot comment on speculation regarding specifics," the spokesperson said.

When contacted, a Bharti Airtel spokesperson said, "As per company policy, we do not comment on speculation."

Post the auction, Qualcomm had formed separate joint venture companies for the four service areas. The company sold 26% stake in the broadband unit to Tulip Telecom and Global Holdings for $57.72 million (about Rs 268 crore) last year.

Foreign companies cannot hold more than 74% stake in an Indian telecom entity.

"Qualcomm is the prime partner and any decision taken will be taken by them. At present, we are not aware of any decision by Qualcomm to sell spectrum to any telecom company," Tulip Telecom Chairman and Managing Director HS Bedi said.

Qualcomm plans to exit the venture after creating a long-term evolution, or LTE, network to roll out broadband wireless access services. LTE is a technology that offers high-speed broadband and high-end multimedia services.