Qualcomm’s local partners to incubate TD-LTE tech

Qualcomm, the US-based technology innovator, announced that it is likely to wait for a few quarters before bringing in Indian telecom operators into its planned LTE network in India.

Meanwhile, 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 to enable Qualcomm to qualify under India’s foreign investment rules, which prohibit foreign firms from holding over 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 and is primarily aimed at preserving the licence 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. He added that the company is 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.

According to Qualcomm’s initial plans, it wants to distribute its four licences to four separate 3G operators so as to demonstrate the viability of tying up 3G services with the upcoming standard LTE.

It had strategically bid for and won circles such as Kerala and Haryana to ensure exposure to the highest number of operators with the least number of victories. Besides the two states, it also has broadband spectrum in Mumbai and Delhi.

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.

Qualcomm, however, seemed confident of starting roll out in 2011. “Sometime in 2011,” Singh said, when asked when he expects actual deployment work to begin on the ground.