Bharti Airtel said it will merge its VSAT business with the VSAT business of Hughes Communications India Ltd, with HCIL holding a majority stake in the resulting business.
VSAT refers to the provision of data services using satellites, and is used extensively by banks and ATMs.
“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,” Airtel said.
HCIL is the India unit of Hughes Network Systems, LLC, the global leader in broadband satellite networks and services.
Hughes will have majority ownership in the combined entity and Airtel will have a significant shareholding.
The transaction is subject to approvals by relevant authorities, the companies said.
“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,” Airtel said.
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.
Partho Banerjee, President and Managing Director, Hughes Communications India Ltd said the partnership will bring synergies to the Indian ecosystem.
“These are exciting times for satellite broadband service providers as VSAT becomes more mainstream, driven by growing demand from both, enterprise and government segments.”