MUMBAI: Bharti Airtel is in advanced discussions with US chipmaker Qualcomm
to buy its fourth-generation licences for about Rs 6,000 crore, an
acquisition that will allow the country's largest telecom firm to
quickly launch 4G services in the key markets of Delhi and Mumbai.
A person familiar with the development said the deal is likely to be closed by June and will be accompanied by technology agreements between Qualcomm and Bharti. Fourth-generation, or 4G, services offer users Internet access at three times the speed of 3G and require broadband airwaves.
Qualcomm, which had won airwaves in four regions - Mumbai, Delhi, Haryana and Kerala - in the broadband wireless auction of 2010 for Rs 4,900 crore, had begun talks to sell its 74% stake in its Indian joint venture to Bharti later that year.
But the talks were put on hold after the telecom department cancelled the US chipmaker's mobile broadband permits last year on the grounds that it had not applied for licences within three months of the auction.
The telecom department further alleged that Qualcomm applied for
permits under the names of four different companies, violating auction
guidelines that said winners could 'nominate only one company for
obtaining a licence'.
But last month, the Telecom Disputes Settlement & Appellate Tribunal (TDSAT) ruled in favour of Qualcomm's India unit and the company is expected to receive spectrum in 10 days, paving the way for discussions to be revived and the transaction to possibly go ahead.
A Bharti Airtel spokesman said the company did not comment on market speculation while emails to the US company went unanswered. "The sale is Qualcomm's decision, we are not involved at this point," said HS Bedi, chairman and managing director of Tulip Telecom, one of Qualcomm's two JV partners in India.
saket kumar
pgdm2ndsem
A person familiar with the development said the deal is likely to be closed by June and will be accompanied by technology agreements between Qualcomm and Bharti. Fourth-generation, or 4G, services offer users Internet access at three times the speed of 3G and require broadband airwaves.
Qualcomm, which had won airwaves in four regions - Mumbai, Delhi, Haryana and Kerala - in the broadband wireless auction of 2010 for Rs 4,900 crore, had begun talks to sell its 74% stake in its Indian joint venture to Bharti later that year.
But the talks were put on hold after the telecom department cancelled the US chipmaker's mobile broadband permits last year on the grounds that it had not applied for licences within three months of the auction.
But last month, the Telecom Disputes Settlement & Appellate Tribunal (TDSAT) ruled in favour of Qualcomm's India unit and the company is expected to receive spectrum in 10 days, paving the way for discussions to be revived and the transaction to possibly go ahead.
A Bharti Airtel spokesman said the company did not comment on market speculation while emails to the US company went unanswered. "The sale is Qualcomm's decision, we are not involved at this point," said HS Bedi, chairman and managing director of Tulip Telecom, one of Qualcomm's two JV partners in India.
saket kumar
pgdm2ndsem
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