Bharti Airtel to pair up with Hughes for VSAT ops

Bharti Airtel and Hughes Communications India plan to combine their VSAT operations in India. The combined entity will have benefits of scale and reach, with Airtel having a significant shareholding in the new entity.

Hughes Communications India Limited is a subsidiary of global broadband satellite networks and services company Hughes Network Systems, LLC. The company is engaged in providing a range of comprehensive broadband networking technologies, solutions and services for businesses and governments.

Combined entity will provide advanced connectivity services with the introduction of new VSAT and related technologies and continue to serve existing customer base of both the companies Hughes and Airtel. Demand for VSAT service is expected to rise from both enterprise and government sector customers.

Bharti Airtel's board on Monday approved the composite scheme of arrangement between transferor companies Bharti Airtel Limited, Bharti Airtel Services Limited and transferee companies Hughes Communications India and HCIL Comtel Limited to transfer their VSAT business undertaking on a going concern basis by way of a slump sale.

Meanwhile, on Tuesday during post lunch hours, the stock of Bharti Airtel was trading at Rs. 326.85 per share, down by 6.55 or 1.96 per cent on BSE.