Qualcomm Is Selling Its 4G Business In India
Even as 3G is being rolled out across the country, chip maker Qualcomm is planning to sell its 4G business to interested takers.
Qualcomm owns Broadband Wireless Access (BWA) licenses in four circles - Delhi, Mumbai, Haryana and Kerala, according to Business Line. It formed 4 joint venture companies, one per circle. Operators planning to offer LTE (Long Term Evolution) in India will be able to buy Qualcomm's stake in the business
Qualcomm wants to ensure that LTE will be adopted in India. "The financial consideration is important, but is not the only determination for us in terms of the right partners... (The partner) will have to adopt LTE technology. That is the whole reason that LTE must have space in the Indian market," said Bill Davidson, Senior Vice-President for Global Marketing Investor Relations, Qualcomm.
The company spent $1 billion on acquiring the licenses, which will enable delivery of high speed wireless broadband through WiMAX. Through WiMAX, users can browse the Internet at speeds of up to 10 megabits per second.
Corporate data services provider Tulip Telecom and Global Holdings hold a 13% stake each in Qualcomm's broadband unit for Rs 268 crore in 2010. Tulip Telecom is also looking to sell its 13% stake in the business.