Tulip Telecom, Global Holdings buy 26% stake in Qualcomm's India unit for Rs300 crore
30 Jul 2010
Qualcomm, the world's largest fables chip supplier is selling a 26 per cent stake in its broadband unit in India to Tulip Telecom and Global Holdings for about Rs300 crore ($58 million).
New Delhi-based Tulip Telecom, a leading enterprise data connectivity service provider and Global Holdings, a holding company of telecom infrastructure subsidiaries, GTL and GTL Infra will buy 13-per cent stake each in Qualcomm' India unit, while the remaining 74 per cent will be held by Qualcomm.
Qualcomm's equity investment for its 74-per cent stake in the unit will be $164.3 million, the company said.
San Diego, California-based Qualcomm had recently established its India unit, which had successfully bid for 20 MHz of Broadband Wireless Access (BWA) spectrum in four circles of Delhi, Mumbai, Haryana and Kerala for Rs4,912 crore.
However, Qualcom has to part with a minimum of 26-stake in the Indian unit to a local partner, since underIndian laws overseas companies are not allowed to hold more than 74 per cent in a telecom company.
But the Indian government allowed Qualcomm to bid for the spectrum auction on the understanding that the company would take in a local partner before launching its service.
Although Qualcomm is also a leading global wireless telecommunications provider, it lacks the experience as a broadband service provider.