Bharti Airtel to buy 49% stake in Qualcomm's 4G broadband venture

GSM operator Bharti Airtel has entered into an agreement to acquire 49 per cent stake in Qualcomm's Inc's fourth-generation (4G) broadband venture in the country, for $165 million.

The New Delhi-based company will acquire a 26 per cent stake held by two Indian partners in the Qualcomm broadband venture and the remaining by subscribing to fresh equity, the company said in statement.

The deal will give Bharti access to four telecoms zones, including Delhi and Mumbai cities, where it does not have its own 4G spectrum.

''We are delighted to partner with Qualcomm, who shares our commitment to the government's agenda of broadband for all. This partnership will combine the strength of Bharti's national telecom footprint and Qualcomm's technological leadership in the LTE TDD space. With a broadband ready network across India, Bharti is well positioned to lead the next phase of Indian's telecom revolution,'' Bharti Airtel chairman and managing director Sunil Bharti Mittal said.

Bharti will make the acquisition by acquiring the 26 per cent stake held by Global Holding Corporation (GHC) and Tulip Telecom, and the balance by way of subscription of fresh equity in those entities.

The agreement contemplates that once commercial operations are launched, subject to certain terms and conditions, Bharti would assume complete ownership and financial responsibility for the BWA entities by the end of 2014.