Qualcomm India Sells 26% Stake For LTE Venture

Qualcomm Incorporated, the winner of Broadband Wireless Access (BWA) spectrum in four telecom circles in India, has announced Global Holding Corporation Pvt Ltd and Tulip Telecom  as initial shareholders for its India LTE venture. Subject to receipt of government approvals, Qualcomm will have a 74 per cent stake in the venture, while Global Holding Corporation and Tulip Telecom will hold 13 per cent each, as required by applicable Indian Foreign Direct Investment regulations. Commenting on this venture, Kanwalinder Singh, president of Qualcomm India and South Asia and senior vice president of Qualcomm, said, “With our initial shareholders, and operators we intend to bring into the venture in the future, Qualcomm will facilitate accelerated deployment of LTE in concert with 3G HSPA and EV-DO networks, which protects and enhances the significant investment made by Indian operators in securing 3G and BWA spectrum.” In the recently concluded BWA auction, Qualcomm won one slot of 20 MHz TDD spectrum in the 2.3 GHz band covering the key telecom circles of Delhi, Mumbai, Haryana and Kerala. “Qualcomm’s objective is to facilitate the deployment of LTE, which is best suited to address the demand for high bandwidth mobile broadband services in the 2.3 GHz band, and seamlessly interworks with current and upcoming 3G HSPA and EV-DO networks. Qualcomm will continue to play a central role in fostering the LTE ecosystem with a focus on enabling the creation of 3G/LTE multimode devices and services best suited for India,” the company said in a statement. Qualcomm had previously stated its plan to secure initial Indian shareholders in compliance with applicable Indian Foreign Direct Investment regulations. Having done so, in addition to securing government approvals, the venture will work towards demonstration and commercialization of LTE. Qualcomm expects to attract one or more experienced 3G HSPA and/or EV-DO operators into the venture forconstruction of an LTE network in compliance with the Indian government’s roll-out requirements for the BWA spectrum and then to exit the venture. Barclays Capital is acting as exclusive financial advisor to Qualcomm on India LTE venture partner selection process.

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