Telecom Lead Asia: Iridium Communications, the U.S.-based mobile satellite communications company, is in talks with BSNL and MTNL for a 49:51 joint venture to re-enter India.
The company is planning to set up a dedicated gateway in the country with an investment of $25 million.
Iridium’s total investment in Indian telecom market will be $50 million over a few years to offer its services.
In 2012, Iridium Communications’ global capital expenditures (Capex) were $441.7 million. Capital expenditures were $220.3 million for the fourth quarter and primarily related to spending for the Company’s next-generation satellite constellation, Iridium NEXT, and upgraded ground network infrastructure at its commercial gateway.
Besides the state-run BSNL and MTNL, Iridium is in talks with a private Indian group with interest in the telecom sector and a few individuals, among others, to float Iridium India, Business Standard reported today.
Iridium Communications, which has 611,000 billable subscribers, has reported net income of $16.7 million on a fourth-quarter revenue of $92.3 million that declined 3 percent.
The company has a strategic relationship with its U.S. Government customer supported by differentiated and robust product offerings. Government service revenue was $15.2 million, a 5 percent decrease from the prior-year period, driven by a 9 percent decline in traditional voice subscribers, partially offset by 18 percent and 36 percent growth, respectively, in Netted Iridium and M2M data customers.
Government voice and data ARPU was $137 during the fourth quarter, a 1 percent year-over-year decrease. Voice and data ARPU declined due to a higher mix of lower-priced Netted Iridium subscribers. Government M2M data ARPU was $18 during the fourth quarter, down from $19 in last year’s comparable period.
Iridium CEO Matthew J Desch said: “We hope to finalise our partners in India within a month and then apply for licence. We aim to set up the gateway by the middle of 2014 for $25 million. We are setting up similar gateways in China and Russia, though we have only one in the US at present.”
The Business Standard report says India’s policy on foreign direct investment (FDI) in satellite mobile services allows foreign telcos to hold up to 49 per cent through the automatic route and up to 74 per cent after requisite approval from the Foreign Investment Promotion Board (FIPB).
