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| Edited By: Lison Joseph |Source: DNA |Updated: Mar 30, 2018, 04:07 AM IST
AT&T, the world’s largest telecommunications firm by revenue and the largest cellular operator in the US with revenues of $124 billion in 2010, is in talks with chip maker Qualcomm, which holds the licence and spectrum to offer fourth generation or 4G wireless broadband services in four telecom circles in India, according to a person familiar with the development.
AT&T had exited Indian mobile telephony market in 2006, when it divested its stake in favour of its partners — the Tata group and the Aditya Birla Group — and failed in its attempt to gain an entry in 2008.
Making another go at getting a foothold in India, one of the largest and fastest-growing telecom markets in the world, AT&T has deep pockets to challenge Mukesh Ambani’s Reliance Infotel Ltd that is preparing to launch 4G broadband services by late December this year.
In the May 2010 auctions conducted by India’s department of telecommunications, Qualcomm won spectrum urban circles New Delhi, Mumbai, Haryana and Kerala for Rs4,912.5 crore or a little over $1 billion.
Infotel, however, has a pan India licence to offer 4G services.
An India spokesperson for AT&T said the company does “not comment on rumours and speculation.”
“Consistent with those goals (of eventually exiting its India BWA venture), discussions with 3G operators in India on LTE-TDD commercialisation and commercial discussions related to Qualcomm’s BWA spectrum are indeed ongoing,” a Qualcomm spokesperson said.
“These discussions are, however, confidential and Qualcomm cannot comment on speculation regarding specifics.”
Qualcomm makes wireless chips that go into computers and cellphones and it is interested in seeing a Long Term Evolution or LTE technology-based ecosystem as the company has invested in that technology and plans to make LTE chips.
The San Diego, US-based company participated in India’s wireless broadband spectrum auctions to ensure wider adoption of LTE for offering 4G broadband services here.
With a subscriber base of about 700 million, India represents a mass-market opportunity for LTE -based phones, laptops and tablet computers, and by extension of that logic, for chip makers like Qualcomm.
“Qualcomm has publicly stated that it will work with 3G operators to develop the 3G+LTE ecosystem, commercially deploy LTE TDD in the BWA spectrum, and then exit its India LTE venture,” the spokesperson said.
In July, Qualcomm had divested 26% stake — 13% each to Tulip Telecom and Global Holding Corporation — retained 74% holding in its Indian operations to comply with Indian foreign direct investment regulations related to telecom sector.
Barclays Capital is acting as exclusive financial advisor to Qualcomm on the India LTE venture partner selection process.
In the US where it has about 93 million subscribers, AT&T began LTE trials in 2010 and plans to commercially launch LTE-based services in mid-2011.
Through a joint venture with Mahindra Telecommunications Investment Pvt Ltd, AT&T India offers enterprise networking services to global and Indian multinational companies.
In November, it had bagged a networking contract from US motorcycle maker Harley-Davidson to set up and run a virtual private network or VPN connecting Harley-Davidson’s offices in India and their US headquarters.
Till 2006, through a joint venture with the Tata group and Birlas, AT&T was part of the cellular telephony operations of the service provider that currently operates under the brand Idea Cellular.
Along with Mahindra Telecommunications, AT&T had applied for telecom licence and spectrum in 2007 but in the allotments that happened in 2008, the company did not win any licence or spectrum.
