Augere to invest $60m for BWA services rollout in India

Augere Wireless Broadband India, one of the six companies which bagged BWA licence last year, today said it plans to invest USD 50-60 million over the next three to five years for rolling out high speed internet services across Madhya Pradesh.

The company has also awarded the country's first long-term evolution (LTE) contract to Swedish equipment maker Ericsson for rolling out the TD-LTE network.

LTE is a technology platform that allows high-speed access to data services and downloads.

However, financial details of the three-year contract were not disclosed.

UK-based Augere, which will offer services under the Zoosh brand name, had received broadband wireless access (BWA) licence for Madhya Pradesh circle and had paid Rs 124.66 crore.

"We are looking at an investment of USD 50-60 million over the next 3-5 years... This will be for roll out of network," Augere Wireless Broadband India CEO Lars Stork told reporters here.

He added that the company should be able to break even by the end of third year of operations.

Augere will do a soft launch in February next year and expects to commercially launch services by April, Stork said.

Moser Baer group founder Deepak Puri's family will be Augere's Indian partner with 26% stake in the company, Stork said.

As per Indian laws, foreign-owned companies cannot hold more than 74% stake in a telecom venture and need to have a local partner to roll out services.

Augere offers WiMAX-based wireless internet under the Qubee brand in Pakistan and Bangladesh.

Stork said the company is looking at offering LTE  services in Africa as well in India.

Mukesh Ambani-led Infotel Broadband is the only player to win pan-India permit for all 22 circles for Rs 12,850 crore.

Broadband services provider Tikona bagged licenses for 5 circles. Aircel won permits for eight circles, while Bharti Airtel and Qualcomm won licenses for four circles each.