Airtel, Hughes form Joint Venture to Provide Satellite Broadband Services in India

Sunil Mittal-led Bharti Airtel and Hughes Communications India Pvt Ltd, (HCIPL) today announced the formation of a joint venture to provide satellite broadband services in India. Airtel will hold a 33 per cent stake in the new JV while Hughes will hold the balance 67 per cent stake.

Operational as HCIPL, the entity combines the Very Small Aperture Terminal (VSAT) businesses of both companies to offer flexible and scalable enterprise networking solutions using satellite connectivity for primary transport, backup and hybrid implementation. The agreement, announced in May 2019, has received all statutory approvals, including those from the National Company Law Tribunal (NCLT) and Department of Telecom (Government of India) and the joint venture has been formed.

"We are pleased to commence this joint venture, further delivering on our commitment to serve the growing demand for always-on, always-available network connectivity for enterprise and government customers," said Partho Banerjee, president and managing director, HCIPL.

He further added, "Combining the proven capabilities of both Hughes and Airtel, the partnership will bring synergies to the forefront – including multi-orbit solutions – for the benefit of customers across the length and breadth of India."

Ajay Chitkara, director and chief executive officer, Airtel Business, said: "We, at Airtel, are focused on supporting and accelerating the digital transformation journeys of our customers through an integrated solutions portfolio. With the combined capabilities of Airtel and Hughes, customers will get access to next-generation satellite connectivity backed by proven enterprise-grade security and service support."

Now serving Airtel VSAT customers, HCIPL has a combined base of over 200,000 VSATs. With unmatched reach and scale, the company is the largest satellite service operator in India, well-positioned amid the changing regulatory environment to serve the emerging connectivity requirements of business and government customers with an enhanced product portfolio and operational efficiencies. HCIPL provides broadband networking technologies, solutions and services, including a full range of managed network services, for government offices and enterprises across segments like banking, aeronautical and maritime mobility, small to medium-sized businesses, education, and telecom backhaul, among others.

HCIPL is a majority-owned subsidiary of Hughes Network Systems, LLC (HUGHES), an innovator in satellite and multi-transport technologies and networks for 50 years. HCIPL's turnover for FY2020-21 stood at Rs 1,458.54 million. Bharti Airtel Limited is India's premier communications solutions provider.