Telecommunication services provider Bharti Airtel (Airtel), and Hughes Communications India (HCIL), a subsidiary of Hughes Network Systems, LLC (Hughes), on Tuesday said they have agreed to combine their VSAT (satellite communications system that serves home and business users) operations in India.

The transaction is subject to approvals by relevant authorities, Airtel said in a statement.

As per the agreement, Hughes will have majority ownership in the combined entity and Airtel will have a significant shareholding, it said without sharing any deal size.

HCIL is the leading broadband satellite service operator in India. It provides a comprehensive range of broadband networking technologies, solutions, and services for businesses and governments.

The combined entity will be able to introduce new VSAT and related technologies to deliver a wide range of quality products and service. The combined entity will continue to serve existing Hughes and Airtel customers.

“The partnership will bring synergies to the forefront and combine the proven capabilities of both the companies. Customers can look forward to highly secure and reliable connectivity solutions across the length and breadth of India," Ajay Chitkara, Director and Chief Executive Officer (CEO), Airtel Business said.

The combined entity will benefit from the enhanced scale of operations, improved operational efficiencies and wider market reach. It will be well positioned to leverage the demand for secure connectivity in a rapidly growing digital economy, the company said.

"These are exciting times for satellite broadband service providers as VSAT becomes more mainstream, driven by growing demand from both, enterprise and government segments," Partho Banerjee, President and Managing Director (MD), HCIL, said.

Related Topics
comment COMMENT NOW