Hughes, Airtel to combine India VSAT business

Chennai: Telecom operator Bharti Airtel and Hughes Communications India Ltd (HCIL) have announced they will combine their VSAT (Very Small Aperture Terminal) satellite operations in the country.

HCIL is a subsidiary of broadband satellite networks and services provider Hughes Network Systems. Hughes will have majority ownership in the combined entity while Airtel will have a significant shareholding, according to a statement.

The statement did not spell out the financial details of the transaction, which is subject to requisite approvals.

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

VSAT is used to provide satellite based telecom and internet access to individuals and enterprise users. HCIL is a broadband satellite service operator in India, and offers a range of broadband networking technologies, solutions, and services for businesses and governments.

“The combined entity will continue to serve existing Hughes and Airtel customers,” the statement added.

NT Bureau