Qualcomm (NASDAQ:QCOM) sold stakes to two Indian partners for its broadband wireless access joint venture in India, which the company plans to use to promote TD-LTE network technology.
Qualcomm said Global Holding Corp. and Tulip Telecom each purchased a 13 percent stake in the venture for $28.9 million--actions hinted at in reports speculating on the venture. The U.S. chip maker will retain 74 percent of the venture by investing $164.3 million, the companies said.
Qualcomm paid $1 billion for spectrum in the 2.3 GHz band in India's recently completed broadband spectrum auction. However, to move ahead Qualcomm needed Indian partners, and speculation had been building for months as to which companies might partner with Qualcomm. Global Holding operates GTL Ltd. and GTL Infrastructure, both of which sell network equipment. Tulip Telecom, meanwhile, supplies networking services to companies and governments.
The venture's TD-LTE network will take shape over the next several months. Qualcomm expects to get the spectrum within the next two to three months and hopes to launch broadband services in 2011, Kanwalinder Singh, president for Qualcomm's Indian and South Asian operations, told Reuters. Qualcomm won spectrum in four of India's 22 service areas, including the cities of Delhi and Mumbai.
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