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For greenfield operators hoping to cash in on 4G in India, the day is not far away. Coming close on the heels of telecom minister, A. Raja's announcement that the talks for rolling out 4G in India are in progress, British firm picoChip has taken a concrete step towards that end, tying up with Mumbai-based Rancore Technologies for development of 4G base stations to aid in roll-out of 4G wireless telecom networks in India.
One of the four multi-million pound business deals between Indian and British firms, the picoChip-Rancore is the first private sector partnership to actively begin the process of 4G roll-out in the country. According to UK Business Secretary Vince Cable, "We have superb UK companies operating in India in partnership with Indian firms, and I would encourage more UK firms to explore the opportunities here.”
This announcement has come as welcome news to operators like Uninor and Videocon, which in the past have vehemently stated that they are waiting to exploit 4G in India, as it is the technology of the future.
And talking about future technologies, Qualcomm's recent 26% stake sale for $57.72 million (Rs 270 cr) for its India broadband unit to Global Holding Corporation and Tulip Telecom has fueled the process of LTE roll-out in India.
Remarked Kanwalinder Singh, president of Qualcomm India and South Asia and SVP, Qualcomm,“Our objective was to secure initial shareholders who are operator-neutral, yet bring strong telecom and broadband experience, and we are extremely pleased we met that objective with Global Holding Corporation and Tulip Telecom. With our initial shareholders, and operators we intend to bring into the venture in the future, 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.”
Subject to receipt of government approvals, Qualcomm will have a 74 percent stake in the venture, while Global Holding Corporation and Tulip Telecom will hold 13 percent each, as applicable according to Indian FDI regulations.
Qualcomm's choice of Indian partners is based on the fact that Tulip Telecom is India's largest enterprise data connectivity service provider, with significant experience in creating and managing large networks across industry verticals, while Global Holding Corporation owns the largest independent telecom tower company in the world — GTL, as well as GTL Infrastructure.
Explaining about how the partnership will help Tulip in furthering its aspirations for LTE in India, HS Bedi, chairman and managing director of Tulip Telecom said,“Tulip Telecom considers this as an opportunity to play a significant role in addressing the demand for high-bandwidth mobile broadband services in some of the highest density telecom circles in India.”
Qualcomm's move is significant as it is a strong contender for TD-LTE and poses stiff competition to WiMax contenders like Bharti Airtel, Tikona and Infotel, the latter in which Mukesh Ambani's Reliance Industries is a major stakeholder, and was set to be the first to roll-out LTE in India.
Speaking on the implications of Qualcomm's venture on India's LTE progress, Samarth Narayan, Sr. Research Analyst, ICT Practice, Frost & Sullivan, South Asia, Middle East & North Africa remarked, “This move by Qualcomm clearly establishes its preference for operator agnostic companies. Qualcomm has been the flag bearer for LTE deployment in India, and has been one of the prime lobbyists in favour of TDD-LTE based wireless broadband services in the country.
“Qualcomm will be in a position to give a strong competition to the likes of RIL and Tikona who seem to be aligning towards WiMax technology. What is expected in future is more lobbying for the choice of technology for roll out of the most game changing service in the broadband market of India, the wireless broadband,” he added.
Qualcomm, which recently formed the India unit after its $1-billion purchase of wireless airwaves, expects to get broadband spectrum in two to three months time and aims to launch broadband services by 2011. The unit's enterprise is valued at about $1.11 bn and the equity portion is $222 mn, while the remaining $888 million is debt.
berylm@cybermedia.co.in