Qualcomm selects Indian partners
US chip maker selects partners for Indian LTE venture
US chip maker Qualcomm has chosen two Indian companies, Global Holding Corporation and Tulip Telecom Ltd, as initial shareholders for its Indian LTE venture.
Qualcomm, which recently won Broadband Wireless Access (BWA) spectrum in four telecom circles in India, will have a 74% stake in the venture, while Global Holding Corporation and Tulip Telecom will hold 13% each, as required by Indian foreign direct investment regulations.
Global Holding Corporation is the holding company of the Global Group, which provides network services to India's mobile operators and is also a major player in India's telecom tower infrastructure sector.
Tulip Telecom is India's largest data connectivity provider for enterprise and has significant experience in creating and managing large networks in sectors including telecom, banking, financial services, education, health care and government.
Kanwalinder Singh, president of Qualcomm India and South Asia, said the company's aim was to "secure initial shareholders" that were operator-neutral but also had solid telecom and broadband experience.
In the recent BWA auction, Qualcomm won a single slot of 20 MHz TDD spectrum in the 2.3 GHz band, covering Delhi, Mumbai, Haryana and Kerala. The company plans to deploy an LTE network that will address demand for high bandwidth mobile broadband services while also protecting operators' "current and upcoming" 3G HSPA and EV-DO networks, Qualcomm said in a 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.