Intel could take part in Indian spectrum bid with major cellco

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Intel could take part in Indian spectrum bid with major cellco

By CAROLINE GABRIEL

Published: 30 October, 2009

READ MORE: Spectrum | India | Intel Capital | Regulator | WiMAX

Now that the Indian 3G and WiMAX auctions really seem to be set to kick off in January, major international players are taking an interest. Earlier this week, reports surfaced that Google would partner with bidders in the WiMAX sale to push its open, affordable internet agenda in the huge market. Now it may be the turn of the other great WiMAX cheerleader, Intel, which also wants to ensure the position of its favorite technology as a vehicle for universal broadband.

According to the Indian Business Standard newspaper, the chip giant hopes to team with a local operator in the auction. This would support its partner's roll-out plans financially and in technology and expertise, increasing the chances of a rapid and competitive roll-out; and give Intel a strong guiding hand over the business models and services adopted.

Possible partners could be one of the major cellcos that are expected to join state-owned BSNL and MTNL (which have early access to their spectrum) in rolling out WiMAX. These include Bharti Airtel, Reliance and Tata Communications. Like the state carriers, these are likely to adopt a two-tiered plan - rural access and urban metrozones - working with partners and possibly a franchise model, involving shared risk and reward with vendors.

According to the reports, Intel Capital plans to float a new company as a joint venture with one of the three major cellcos. Indian law allows a foreign entity to hold a maximum of 74% in such a venture. Intel has taken part in many WiMAX ventures round the world, sometimes via joint ventures like Clearwire or Freedom4, sometimes by purchasing spectrum directly as in Sweden, and sometimes with injections of capital or equipment into start-up providers, often in emerging markets.

The WiMAX auction will start a few days after the conclusion of the 3G sale, which is due to start on January 14. The Department of Telecom plans to auction two blocks of 2.3GHz spectrum in January. About 28 companies - including Intel Technology India, Alcatel-Lucent India, Motorola, Huawei, HCL Infosystems and TCIL - have bought tender documents.