Qualcomm takes US$200M stake in Indian telecom co.

ITworld.com –

In a deal that is claimed to the largest single investment by a foreign company in an Indian telecommunication company, Qualcomm Inc. plans to take an undisclosed minority stake worth up to US$200 million in Indian fixed-line telecommunication provider Reliance Communications Ltd., the companies announced Thursday in a joint statement.

Under terms of the agreement struck by the two companies, Reliance will use CDMA2000 1x technology from Qualcomm to offer wireless local loop services with limited mobility, the statement said. Wireless local loop services will provide telephony services over the "last mile" of Reliance's fixed-line network. This reduces the cost of offering telephone services by eliminating the need for local copper or fiber-optic cables that connect to the operator's main fixed-line network.

Reliance plans to provide basic telephone services, wireless local loop and domestic long distance services in India, the company said, adding it plans to offer international telephony services once that sector is opened to participation by privately owned companies.

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