Under the deal, which must first be approved by the Indian government, Qualcomm will hold a 74 percent stake, while Global Holding Corporation and Tulip Telecom will each take a 13 percent stake, a necessary requirement under Indian Foreign Direct Investment regulations.
The investment partners already have strong interest in the region, with Global Holding Corporation providing services and infrastructure for the telecommunications industry and Tulip Telecom being a key player in enterprise for data connectivity. Their experience should provide Qualcomm with a good opportunity for developing and delivering LTE throughout India.
Speaking of his new partners, Kanwalinder Singh, president of Qualcomm India, said: “Our objective was to secure initial shareholders who are operator-neutral, yet bring strong telecom and broadband experience.”
He added that Qualcomm “will facilitate accelerated deployment of LTE in concert with 3G HSPA and EV-DO networks, which protects and enhances the significant investment made by Indian operators in securing 3G and BWA spectrum.”
Qualcomm won the LTE spectrum in actions held in India in early June, giving it control of a portion of the unused 2.3 GHz band in the regions of Delhi, Mumbai, Haryana and Kerala. It was keen to win the slot, considering many believe LTE will be the next big success story for mobile technology.
Now that it has secured investors Qualcomm said its next step is to work on “demonstration and commercialization” of LTE technology. It expects that some 3G HSPA or EV-DO operators will be interested in working with it on constructing the LTE network