Qualcomm sells 26% in broadband venture

US-based mobile chip maker Qualcomm has sold 26 per cent stake in its Indian broadband unit to Tulip Telecom and Global Holdings for $57.72 million (Rs 270 crore).

Both Tulip Telecom and Global Holdings (the latter owns telecom infrastructure firms GTL Ltd and GTL Infra as its subsidiaries) bought 13 per cent each, for a combined value of $57.72 million.

Qualcomm had acquired Broadband Wireless Access (BWA) spectrum in four circles — Delhi, Mumbai, Haryana and Kerala — for $1 billion (Rs 4,670 crore) in the auction held last month. A foreign entity cannot hold more than 74 per cent stake in an Indian telecom venture.

Qualcomm now holds 74 per cent. “The company expects to get broadband spectrum in two to three months time and aims to launch broadband services in 2011. The unit’s enterprise value is about $1.11 billion and the equity portion is $222 million, while the remaining $888 million is debt,” Qualcomm India and South Asia President Kanwalinder Singh told reporters here.

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

He said Qualcomm would look at partnering with 3G HSPA (High Speed Packet Access) and EV-DO (evolution, data only) technology providers, for selling further stake in the venture.”We are in discussions and expect to attract one or more 3G and/or EV-DO operators into the venture,” Singh added.

Tulip CMD H S Bedi said, “For us, this is an opportunity to play a significant role in addressing the demand for high-bandwidth mobile broadband services in India.”

“Through this venture, we will look forward to sharing our expertise in the network services and telecom tower infrastructure space to the market,” Global Holdings Group founder Manoj Tirodkar said.

Qualcomm would compete with Bharti Airtel and Mukesh Ambani-led Reliance Industries, which bought majority stake in Infotel Broadband that won a pan-India wireless broadband licence for BWA.