Qualcomm selects partners for Indian venture

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Qualcomm selects partners for Indian venture

Global Holding and Tulip to own 26% and help build TD-LTE wholesale network

By CAROLINE GABRIEL

Published: 30 July, 2010

READ MORE: M&A | India | Qualcomm | MVNO | LTE

As expected, Qualcomm has named two partners for its Indian broadband wireless venture, Global Holding and Tulip Telecom. They will work with the chip giant to create a TD-LTE network in the 2.3GHz spectrum Qualcomm won recently in four of India's telecoms operating regions. This will then offer wholesale capacity to 3G cellcos, in particular.

Subject to government approval, Qualcomm will retain a 74% stake in the venture, while Global Holding and Tulip will hold 13% each, as required by Indian limits on direct foreign investment. The US firm has said it plans to exit the organization once it has succeeded in its aim of establishing a beach-head for TD-LTE technology in India, once expected to deploy only WiMAX in its TDD-based BWA frequencies.

Qualcomm has pursued this strategy before, buying spectrum to support one of its favored platforms - for instance, in some 450MHz auctions in Europe, or its MediaFLO mobile TV venture in 700MHz.

Global Holding is the holding company of the Global Group, which provides network services to India's cellcos and owns the country's largest independent telecom tower infrastructure. Tulip is India's largest enterprise data network service provider, building and managing large networks in many vertical industries. Further partners are expected to join later, probably operators to offer the actual services once they go live, on a direct or wholesale basis.

The company said in its statement: "Qualcomm expects to attract one or more experienced 3G HSPA and/or EV-DO operators into the venture for construction of an LTE network in compliance with the Indian government's roll-out requirements for the BWA spectrum and then to exit the venture."

"Our objective was to secure initial shareholders who are operator neutral, yet bring strong telecom and broadband experience, and we are extremely pleased we met that objective with Global Holding Corporation and Tulip Telecom," said Kanwalinder Singh, president of Qualcomm India and South Asia, in the statement. "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 HSPA and EV-DO networks, which protects and enhances the significant investment made by Indian operators in securing 3G and BWA spectrum."

Qualcomm's licenses comprise 20MHz of spectrum in the telecom circles of Delhi, Mumbai, Haryana and Kerala. Here, it will compete in the 2.3GHz band with national license holder Reliance Infotel and the two state-owned telcos, MTNL (in Delhi and Mumbai) and BSNL (in the other areas). All these three are deploying WiMAX.