Augere Wireless plans to end business operations in India (India)
Augere Wireless, a company backed by France Telecom and private equity funds, is set to sell its 4G spectrum in two states and quit India, as regulatory uncertainty has forced its investors to hang up on the country, according to a report by ET.
As per the report, two company executives said Augere was shutting down its India operations and had asked its employees in the country to resign. Augere is the second 4G spectrum holder that is close to exiting the wireless broadband space.
As reported earlier, Qualcomm is said to be in advanced talks with leading operator Bharti Airtel to sell its 4G licences. Airtel is the only operator in India to have launched 4G services.
Augere Wireless CEO Lars Henrick Stork said the company had stopped all operational activities in India and had asked employees to go on leave as it was reassessing its plans here. He blamed the regulatory uncertainties surrounding India’s telecoms sector and said it had resulted in the company being unable to raise funds from both national and international investors.
In a conversation with ET, Stork said that there is a lot of uncertainty hanging over the telecoms sector in India. The cancellation of licences by the Supreme Court, Trai’s rules for re-auction and the exorbitantly high reserve price, as well as lack of clarity on the new telecoms policy, which was supposed to be unveiled by mid-last year and has not happened yet; all these factors have resulted in their investors stopping funding for their activities here.
Augere’s investors include former Orange CEO Sanjiv Ahuja, Harbinger Capital, France Telecom, New Silk Route and Vedanta Opportunity Fund. The company also offers its services in Asia and Africa under the Qubee brand.
Airtel in talks with Qualcomm to buy out Indian unit (India)
Leading telecom operator in India, Bharti Airtel, is said to be moving forward in its talks to buy out the Indian partners of Qualcomm in a fourth-generation (4G) broadband venture in the country, according to a report by Reuters.
Qualcomm purchased 4G radio airwaves in a 2010 Indian state auction for $1 billion, and had sold a total 26 percent stake to Indian companies Global Holding Corp and Tulip Telecom for about $58 million to comply with the sector’s foreign holding rules.
As per the report, both sides are still negotiating valuations, but Bharti will likely pay some premium over what Global Holding and Tulip paid in 2010. Further, it is expected that Bharti will make further investments in the company in future and new shares will be issued to them. That automatically dilutes the Qualcomm holding.
The deal will give Bharti access to four telecoms zones, including the lucrative Delhi and Mumbai cities, where it does not have its own 4G airwaves. Bharti, which won 4G airwaves in just four of India’s 22 telecoms zones, has said it would like to have a nationwide 4G broadband network. The company recently launched commercial 4G networks in Kolkata and Bangalore cities.
Qualcomm, which was embroiled in a dispute with the Indian telecoms ministry, was granted the 4G airwaves this month, nearly two years after it won them in the auction. The ministry cut the usage period of the airwaves by 18 months.
Qualcomm, which is pushing for the deployment of LTE (long-term evolution) broadband technology in India, has previously said it is looking at one or more operator partners in the India broadband venture.
Airtel may seek to acquire Qualcomm’s 4G spectrum (India)
Following the news that Qualcomm is looking to sell its 4G spectrum, it is being said that Indian telecom giant Bharti Airtel may be planning to acquire the same. Airtel just launched the nation’s first 4G service in Kolkata recently.
Bharti Airtel is negotiating to pay $1.16 billion for Qualcomm’s BWA spectrum, according to a report by ET. The report reveals that the deal is likely to be closed by June, and could involve an accompanying technology sharing agreement.
As per the report, Bharti Airtel holds BWA licenses in four different circles, having paid $ 643 million in the auction. In the event that the deal succeeds, it would enable Airtel to expand its prospective 4G service area, which could crucially allow it to better compete with Reliance Industries, which own 4G spectrum in all circles and plans to deploy a pan-India TD-LTE network.
Qualcomm receives ISP licence in India (India, USA)
Telecommunication corporation Qualcomm, has received an internet service provider (ISP) licence from India’s department of telecommunications (DoT), which will enable the company to launch broadband wireless access (BWA) services in the country, as reported by BS.
Qualcomm received BWA spectrum in four circles, including Delhi, Mumbai, Haryana and Kerala, at a cost of US$ 977 million, in the 2010 government auction. As per the report, the Telecom Disputes Settlement & Appellate Tribunal (TDSAT) had directed DoT to award the licence and allot spectrum within a week of Qualcomm paying the dues of its Indian partner, Tulip Telecom.
DoT had earlier rejected Qualcomm’s application, saying the company had made four nominees instead of one. The company had later made one nominee but DoT then demanded dues from Tulip, which again held up the application. The US company had challenged the rejection of its application in TDSAT.
Further, the report reveals that the companies are expected to launch BWA services (or 4G services) by the end of this year. The 4G services will offer much faster data speed than 3G.
Huawei signs deal with three US firms worth USD 6 billion (China, USA)
Information and communications technology (ICT) solutions provider Huawei, has announced that it will award Original Equipment Manufacturer (OEM) contracts totaling USD 6 billion to Qualcomm, Broadcom and Avago, three California-based leading communications technology companies.
As per the company’s report, the three-year OEM contracts will directly and indirectly create over tens of thousands of job opportunities for U.S. business while contributing to growth and development opportunities for California high-tech as well as the ICT industry as a whole.
Chen Lifang, Senior Corporate Vice President, Huawei, has said that this procurement agreement reaffirms Huawei’s determination to deliver on its promise to be a local economy contributor, and is a demonstration of confidence in the long-term relationships they have cultivated with their local high-tech partners. The U.S. holds the leading position in the ICT industry, and when coupled with Huawei’s long-term dedication to innovation in the U.S. market, the result is a strategic collaboration to develop a more diversified, balanced and healthier global ICT ecosystem.
Since establishing its U.S. operations in 2001, Huawei has partnered with 280 U.S. technology providers, with total procurement contracts exceeding USD 30 billion. These contracts have covered software, components, chipsets, and services, and its 2011 procurement in this critical region saw an 8 per cent increase year-over-year.
Bryan Ingram, Vice President and General Manager of the Wireless Semiconductor Division of Avago Technologies, has said that Huawei is recognized as a driving force in the ICT industry and they are pleased to expand their collaboration with them. Avago has methodically built up their wireless portfolio of power amplifiers, filters and RF front-end modules to support mobile phone applications and cellular infrastructure equipment, and this serves as an excellent validation of the leading performance and value their technology brings to customers.
Cristiano Amon, Senior Vice President, Qualcomm, said that Huawei is an important global customer and is a growing leader in the wireless industry. Qualcomm is pleased to be working with Huawei, supplying their leading family of Snapdragon processors and multimode broadband modem products, and they look forward to Huawei’s continued success.
ZTE Extends Partnerships with U.S. Technology Firms (China, USA)
Global provider of telecommunications equipment and network solutions ZTE Corporation, has extended its agreement with Qualcomm to provide device processor components as ZTE drives LTE adoption in 2012 and beyond. Qualcomm will continue to provide chipset solutions for ZTE wireless devices available in markets around the world.
ZTE has also entered into an agreement with Broadcom which will continue through 2012. Broadcom will provide networking processor solutions for ZTE Bearer network, Ethernet and XDSL products, which will be used as ZTE expands its infrastructure presence worldwide. The newest investment with Broadcom reflects the continued efforts that ZTE is making to customize deployments for customers and ensure availability of reliable and cost-efficient solutions.
Thomas Lagatta, executive vice president of Sales, Broadcom Corporation has said that as a leading semiconductor supplier, Broadcom has demonstrated technology innovation throughout ZTE’s product portfolio. Further, ZTE is one of the most important Broadcom partners, they are very proud of the milestone they have achieved with ZTE together, and look forward to further strategic collaboration.
Ye Weimin, senior vice president, ZTE Corp. says that ZTE believes that its solutions are dependent upon the partners they select to provide high-quality, reliable products for customers. They are strengthening relationships with telecommunications’ best technology companies to demonstrate our capabilities, customization and value. ZTE continues to put the resources in place to grow as a worldwide leader in the infrastructure and device industry.
As per company reports, ZTE has a history of supporting American companies and has invested more than $13 billion in U.S. companies and technologies through the purchase of products and licensing of intellectual property. This strategy demonstrates ZTE’s global and inclusive business model that utilizes best-in-class technology, efficient engineering and manufacturing, and worldwide reach to bring customers quality mobile products.
AT&T granted approval to purchase spectrum from Qualcomm (USA)
Mobile network operator AT&T, has been granted regulatory approval to purchase wireless spectrum from Qualcomm. According to company reports, AT&T will purchase licences in the 700 MHz spectrum bandwidth, which is expected to provide coverage for over 300 million people. The transaction will cost the operator US$ 1.9 billion and is expected to be completed soon.
Reports reveal that Bob Quinn, Senior Vice President-Federal Regulatory, AT&T has said that this spectrum will help AT&T continue to deliver a world-class mobile broadband experience to their customers. He added that as spectrum is the lifeblood of the U.S. wireless industry, they are pleased that the FCC did not reduce the spectrum screen, however, they continue to believe any changes to the process by which it is allocated should be subject to open and transparent public discussion and clear to everyone with an interest in ensuring the health of the industry.
MTN launches 3G enabled HTC phone to drive data usage (Ghana)
Africa’s leading telecommunications service provider, MTN has reportedly launched the MTN/Qualcomm 3G enabled HTC phone in Accra, in collaboration with Qualcomm, in an attempt to increase awareness and usage of data services, especially among business users.
According to reports, Rahul De, Chief Marketing Officer, MTN Ghana, has said that their partnership with Qualcomm to promote these HTC 3G phones ties in with their broad objective to encourage Ghanaians to tap into the benefits of surfing the internet in order to boost productivity and generally impact the socio-economic development of the country.
As per sources, De hopes this initiative will cause more users to take advantage of the wide range of data services available on the network, enhancing their mobile experience. Further, it has been reported that some services such as MTN Business provide total ICT (Information and Communications Technology) solutions to businesses and individuals along with a wide range of 3.5G services.
