Augere Wireless, a company backed by France Telecom and private equity funds, is shutting shop in India by selling its 4G spectrum in the country.
The company offers services in Asia and Africa under the Qubee brand.
The move comes in the wake of regulatory uncertainty created by the Telecom Regulatory Authority of India (TRAI) with its recommendations on fresh auction of 2G licenses. High reserve cost of new spectrum auction and higher refarming cost has upset Augere Wireless.
Augere Wireless had won airwaves for Madhya Pradesh and Chhattisgarh in the broadband wireless auctions held in 2010. Following its win the company became the first 4G player in the country to award an equipment contract by appointing Ericsson India to roll out its network. It had also roped in Tata Consultancy Services to handle its IT and customer services requirements. The company had plans of rolling out its wireless broadband services in the second half 2012 under the brand name, ?ZOOSH Broadband.?
Augere Wireless had paid about Rs 1.25 billion for its 4G permit in 2010. The company is now shutting down its India operations and has asked its employees in the country to resign.
Augere Wireless? investors include Sanjiv Ahuja, former, Chief Executive Officer, Orange, Harbinger Capital, France Telecom, New Silk Route and Vedanta Opportunity Fund.
Augere Wireless is the second 4G spectrum holder that is close to exiting the wireless broadband space. Another player the US-based chipmaker Qualcomm is looking at selling its 4G permits in four circles to Bharti Airtel. Qualcomm had won 4G permits in 2010.
