Qualcomm to partner with Airtel in India
There is a strong rumor of Qualcomm partnering with Airtel to roll-out TD-LTE network in India. Qualcomm has bid for the ongoing BWA spectrum and would need to find an Indian partner if it were to win the bid as Indian laws prohibit any foreign company to hold more than 74% share in any telecom company.
Qualcomm has a good chance of winning the bid as it would do anything to get the spectrum and showcase the TD-LTE technology. Airtel has not been able to get 3G spectrum in almost half the circles and would be keen to leapfrog technology by launching 4G across the country. 3G spectrum can then be used for freeing up the 2G network. Qualcomm on the other hand has no interest in launching the network by itself and is only interested in blocking WiMax from getting further foothold in India. Thus there is a perfect match between Airtel and Qualcomm.
I had mentioned in my earlier post that in a statement, Qualcomm made it clear that it intended to act only as a facilitator: If it wins the spectrum auction, Qualcomm plans to partner with an India-based operator to build a TD-LTE network and then exit the business. Surely, Qualcomm would like to partner with a pan India player and with significant subscriber base. Qualcomm has good relationships with Tata and Reliance but does not view them as potential partners which leaves is it with Airtel as the only choice. Vodafone is a global company and would not like to have a tie-up with Qualcomm.
Please note that this rumor has not been confirmed by either Airtel or Qualcomm.
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Hi Mohit,
I have my doubts on this.,
1. I don’t see the logic of Airtel investing on 3G/HSDPA in half the country and in the rest invest in TD-LTE with QC. What will they do when the govt decides to go for the LTE (FD variant) auction sometime in the future. Its too messy for any operator to have two different networks. Airtel already has too many things on its plate.
2. QC will certainly have immediate roll out obligations in the markets where it will win the license and I don’t see enough TD-LTE devices in the market in such a short timreframe. This is going to be big hurdle.
3. I see QC getting into the same problem with Indian operators on TD-LTE as they have had with CDMA on royalties. I am not aware of what % of essential TD -LTE patents is owned by QC and what is royalty rate.The high CDMA royalty had caused much heartburn in the past.
My feeling is QC will get on board some small Indian company (may be one of the new operators like Uninor, STel etc who have not bid/not won 3G licenses) and roll out the TD-LTE network under a MVNO model (depending upen MVNO regulation)
Interesting to see on how this plays out.
Arvind