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Bharti Airtel to merge broadband satellite business with Hughes India unit

Wednesday, 08 May 2019
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Bharti Airtel has decided to merge its broadband satellite, or VSAT, business with that of Hughes Communications India. This is being done in order to increase scales, improve operational efficiencies and target new customers in areas such as in-flight connectivity.

Bharti Airtel’s VSAT business will be demerged into Hughes Communications India’s operations through a slump sale. Hughes Communications will own 67 percent share of the new entity while Bharti Airtel will own the rest.

The new company will continue to be called Hughes Communications, India but the name could be changed in future. Insiders revealed that closure of the deal may take between nine and 12 months, depending on regulatory clearances, and the merged entity will have a combined share of 63 percent.

The combined entity will be well positioned to leverage the demand for secure connectivity in a rapidly growing digital economy.

The merged entity will be able to improve technology and offer new services to existing customers of Bharti Airtel and Hughes Communications India, and to new customers. VSAT is used to provide satellite based telecom and internet access to individuals and enterprise users.

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