The Department of Telecommunications (DoT) has cleared United States?based Qualcomm Inc?s stake sale proposal in its broadband wireless entity, Wireless Business Service Private Limited (WBSPL), to Bharti Airtel.
The approval comes through following the Ministry of Law?s opinion that the proposed stake sale is not in violation of broadband wireless auction (BWA) 2010 regulations. Earlier, DoT had sought legal opinion on whether the auction rules allowed WBSPL, which acquired an internet service provider’s licence on winning spectrum in the BWA spectrum auction, to dilute promoter?s stake to below 26 per cent.
According to the Ministry of Law, the notice inviting application doesn?t impose any lock-in condition on successful bidder in case of prospective new entrant companies also. In fact, the restriction of a successful bidder holding 26 per cent shareholding in a Licensee Company is applicable till the full spectrum fee is paid and spectrum allotted.
Chipmaker Qualcomm had acquired 20 MHz of 4G spectrum in the four circles of Haryana, Delhi, Mumbai and Kerala for Rs 49.125 billion. It first roped in two Indian partners to maintain the mandatory cap of foreign direct investment not exceeding 74 per cent and later sold its entire stake in the company to Bharti Airtel in tranches.
