Qualcomm, the US-based technology innovator unexpectedly announced it is likely to wait for a few quarters before bringing in Indian telecom operators into its planned LTE network in India. In the meantime, it announced two financial investors, Global Holdings -- the parent of GTL Infrastructure, and the promoters of Tulip Telecom in their private capacity.
The two investors, who will hold 13% each, have been roped in so as to enable Qualcomm to qualify under India's foreign investment rules, which prohibit foreign companies from holding more than 76%. Qualcomm had to announce Indian partners within six months of winning the auction.
The venture, in its present shape, is unlikely to see any big investment or expansion and is primarily aimed at preserving the license till Qualcomm promoted technology, LTE (Long Term Evolution) matures.
"We first wanted to demonstrate the technology.. Then we will invite the operators," Kanwalinder Singh, South Asia head for the US giant said. Kanwalinder added that the company is being currently valued at around $1.1 billion, including the $1.045 billion spent on acquiring the four slots of broadband spectrum held by it. HS Bedi, chairman of Tulip, an enterprise connectivity provider, said he may or may not stay on in the venture in the long term, depending on future developments.
Industry sources revealed that operators were more keen to invest in Qualcomm's venture -- and its technology -- after the company has demonstrated it on the ground. While Qualcomm expects TD-LTE, the required technology, to mature by 2011-12, many operators are worried about possible delays.
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