Qualcomm (QCOM) Looking to Exit India; Bharti Airtel Lead Bidder
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According to sources, Qualcomm (Nasdaq: QCOM) is in talks with several firms about exiting four Indian ventures following the successful rollout of operations in India.
The four ventures housed its wireless broadband operations, according to the Wall Street Journal, which cited sources on the matter.
Leader in the bidding process is Bharti Airtel, though an actual transaction may take several months.
Last year, Qualcomm won a $1 billion Indian government auction to provide broadband service in Delhi, Mumbai, Kerala and Haryana. Following the win, Qualcomm formed separate joint ventures for each sector. Qualcomm retained a 74% stake in each venture, with India's Global Holding Corp. and Tulip Telecom Ltd taking 13% each.
India allows foreign companies to own up to 74% of telecom joint ventures at any one time.
The WSJ reports that telecom companies in India have seen profits erode in recent quarters, stemming from heightened competition in the sector.
The four ventures housed its wireless broadband operations, according to the Wall Street Journal, which cited sources on the matter.
Leader in the bidding process is Bharti Airtel, though an actual transaction may take several months.
Last year, Qualcomm won a $1 billion Indian government auction to provide broadband service in Delhi, Mumbai, Kerala and Haryana. Following the win, Qualcomm formed separate joint ventures for each sector. Qualcomm retained a 74% stake in each venture, with India's Global Holding Corp. and Tulip Telecom Ltd taking 13% each.
India allows foreign companies to own up to 74% of telecom joint ventures at any one time.
The WSJ reports that telecom companies in India have seen profits erode in recent quarters, stemming from heightened competition in the sector.
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