Hughes and Bharti Airtel to amalgamate their India VSAT operations
By Akshay Kedari  Date: 2019-05-08

Hughes and Bharti Airtel to amalgamate their India VSAT operations

The closure of the deal may take 9 to 12 months, depending upon regulatory clearances.

Indian global telecommunication service company Bharti Airtel has reportedly announced that it will merge its broadband satellite, or VSAT, business with Hughes Communications India Ltd (HCIL) to create a stronger no. 1 in the space and to enhance scale, develop operational efficiencies and target new customers in areas such as in-flight connectivity. 

Reportedly, around 67 percent share of the new entity will be owned by Hughes Communications and rest will be owned by Airtel. The new entity will be named as Hughes Communications India Ltd. The name of the entity can be changed in the future, cited reliable sources.

Airtel reportedly stated that it will demerge its VSAT business into the operations of Hughes Communications India through a slump scale.

The financial details of the deal have not been disclosed yet. The closure of the deal may take 9 to 12 months, depending upon regulatory clearances. The merged entity will have a combined share of 63 percent.

Currently, Airtel Business – the enterprise and VSAT arm of Bharti Airtel – has a share of 27 percent of the market, while Hughes has 36 percent market share.

Bharti Airtel reportedly noted that the combined entity will be positioned in a way to leverage the demand for secure connectivity in rapidly growing digital economy. The merged entity will be able to offer new services to existing and new customers of Hughes and Airtel, and improve technology, Airtel further added.

Reportedly, the move comes following the immense financial pressure on Airtel due to strong competition since Reliance Jio has entered the market in late September.

According to the reliable sources, Hughes’ revenue in India is approximately INR 350 crore for fiscal ending March 2019, while VSAT business of Airtel is around INR 150 crore. The VSAT market is anticipated to be around INR 1000 crore, where 65 percent comprising services and the rest coming from products.

 

Source credit: https://telecom.economictimes.indiatimes.com/news/airtel-and-hughes-to-merge-their-india-vsat-operations/69210938

https://www.businesstoday.in/current/corporate/bharti-airtel-hughes-merge-their-vsat-operations-in-india/story/344053.html

About Author

Akshay Kedari    

Akshay Kedari

A qualified computer engineering graduate, Akshay Kedari takes pride in having his way with words. Following his passion for content creation, he writes insightful pieces on aeresearch.net and a few other portals. Also endorsed with a short-term experience in web deve...

Read More

More News By Akshay Kedari

Chancellor Rishi Sunak pledges £100bn to transform UK’s infrastructure
Chancellor Rishi Sunak pledges £100bn to transform UK’s infrastructure
By Akshay Kedari

As per the statement of chancellor Rishi Sunak, Britain’s first nationwide infrastructure plan would provide a “once in a lifetime investment” of approximately £100 billion to drive the nation’s recovery from the COVID-1...

Telus Communications selects Nokia to deliver 5G services in Canada
Telus Communications selects Nokia to deliver 5G services in Canada
By Akshay Kedari

According to reliable sources, Nokia Corporation has reportedly been selected by Canada-based Telus Communications Inc. to provide 5G services in Canada. The Finnish multinational technology giant will reportedly support the Canadian mobile service o...

TBI, Oracle to jointly launch cloud-based vaccine management system
TBI, Oracle to jointly launch cloud-based vaccine management system
By Akshay Kedari

Tony Blair Institute (TBI) and Oracle have recently introduced cloud technology to Africa for effective management of public health programs in the region. As per credible sources, initially, Ghana, Sierra Leone and Rwanda will use the new Oracl...

Minerva Bunkering unveils ADP for better clarity in bunker deliveries
Minerva Bunkering unveils ADP for better clarity in bunker deliveries
By Akshay Kedari

Swiss supplier of marine fuels Minerva Bunkering has reportedly introduced an innovative solution called Advanced Delivery Platform (ADP) in a bid to increase efficiency and transparency during bunkering operations. According to reliable sources, Min...

TestGorilla secures $1.2M in CapitalT-led pre-Series A funding round
TestGorilla secures $1.2M in CapitalT-led pre-Series A funding round
By Akshay Kedari

In a pre-Series A funding initiative led by a consortium of international angel investors and CapitalT, pre-employment testing software player, TestGorilla, has reportedly secured an amount of USD 1.2 million. This announcement comes amid TestGorilla...