Qualcomm seeks Rs5,000 crore for its BWA spectrum in four circles

Qualcomm, the world's largest fab-less chip supplier, is considering plans to exit the wireless broadband business in India and is looking for a potential buyer willing to pay at least Rs5,000 crore (over $1.1 billion) newspaper reports said today.

The San Diego, California-based company is reported to have approached leading Indian mobile phone operators and made presentations to them, offering them 100 per cent stake in all the four circles where it holds permits, the paper said citing executives with direct knowledge of the developments.

Qualcomm had recently established its India unit, which had successfully bid in June 2010 for 20 MHz of broadband wireless access (BWA) spectrum in four circles - Delhi, Mumbai, Haryana and Kerala - for Rs4,912 crore.

Separately, the company said in a statement: "In response to a number of inquiries Qualcomm has received from various Indian wireless operators regarding the sale of Qualcomm's BWA spectrum, Qualcomm has prepared the outline of the terms and conditions under which it would be prepared to sell such spectrum."

As part of its terms for selling its BWA spectrum in all four circles, Qualcomm said that it would sell its entire stake and not a minority stake as long as the potential buyer gives an undertaking that they would use its latest Long-Term Evolution (LTE) technology gear.

Since under Indian laws overseas companies are not allowed to hold more than 74 per cent in a telecom company, Qualcomm was forced to sell a 26 per cent stake in its India broadband venture to Indian firms Global Holdings and Tulip Telecom for about Rs300 crore ($58 million). (See: Qualcomm may partner Tulip Telecom, Global Holdings for BWA venture)