Hughes will hold 67 per cent in the new JV while Airtel will hold the remaining 33 per cent stake, according to the report
New Delhi: Hughes Communications India (HCIPL), a majority-owned subsidiary of the US-based satellite operator Hughes Network System, and Bharti Airtel on Wednesday announced the formation of a joint venture (JV) to provide satellite broadband services in India.
Hughes will have 67 per cent in the new JV while Sunil Mittal-led Bharti Airtel will hold the remaining 33 per cent stake, according to sources of the business publication Economic Times. The new JV will also become the distributor of Bharti-backed OneWeb’s upcoming satellite broadband services in India from around May, according to the ET report.
How will the JV operate?
Combining the proven capabilities of both Hughes and Airtel, the partnership will bring synergies to the forefront – including multi-orbit solutions – for the benefit of customers across the length and breadth of India,” Partho Banerjee, president and managing director, HCIPL, said on Wednesday.
The US-based Hughes Network Systems is an innovator in satellite and multi-transport technologies and networks for almost 50 years. Operational as HCIPL, the entity comprises the Very Small Aperture Terminal (VSAT) businesses of both companies to offer flexible and scalable enterprise networking solutions using satellite connectivity for primary transport, back-up and hybrid implementation.
The agreement on the JV was announced in May 2019. It has received all statutory approvals, including those from the National Company Law Tribunal (NCLT) and Department of Telecom and the joint venture has been formed.
Ajay Chitkara, chief executive officer, Airtel Business, said, “With the combined capabilities of Airtel and Hughes, customers will get access to next generation satellite connectivity backed by proven enterprise grade security and service support”.
