India's Bharti Airtel has agreed to merge its domestic satellite operations with Hughes Network Systems' Indian subsidiary Hughes Communications India.
The companies will combine their very small aperture terminal (VSAT) satellite operations in a bid to benefit from enhanced scale, improved operational efficiencies and wider market reach.
Under the agreement, Hughes will take a majority stake in the combined entity, with Airtel owning a significant minority stake.
The combined company will continue to serve existing Hughes and Airtel customers, while introducing new VSAT and related technologies in the Indian market.
“We are very excited about the synergies that this partnership will bring to the Indian ecosystem,” Hughes Communications India president Partho Banerjee said.
“These are exciting times for satellite broadband service providers as VSAT becomes more mainstream, driven by growing demand from both, enterprise and government segments.”
Airtel Business director and CEO Ajay Chitkara added that the tie-up is aimed at better serving the connectivity needs of what he called 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,” he said.