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Bharti Airtel and HCIL to merge their Indian VSAT operations

May 07, 2019
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Bharti Airtel and Hughes Communications India Limited (HCIL) have entered into an agreement to merge their very small aperture terminal (VSAT) satellite communication operations in India. The transaction is currently subject to approvals by relevant authorities.

As per the agreement, Hughes will have majority ownership in the combined entity while Airtel will have a significant shareholding.

According to the two companies, the combined entity will be able to introduce new VSAT and related technologies to deliver a wide range of quality products and service, and will continue to serve existing Hughes and Airtel customers. The combined entity will benefit from enhanced scale, improved operational efficiencies and wider market reach. It will be well positioned to leverage the demand for secure connectivity in a rapidly growing digital economy.

Announcing the partnership, Partho Banerjee, President and Managing Director, Hughes Communications India Limited said, “We are very excited about the synergies that this partnership will bring 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.”

Meanwhile, Ajay Chitkara, Director and CEO, Airtel Business said, “We are pleased to combine our VSAT operations with Hughes to serve the connectivity needs of Digital India. The partnership will bring amazing synergies to the forefront and combine the proven capabilities of both the companies. Customers can look forward to highly secure and reliable connectivity solutions across the length and breadth of India.”


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