The Indian government is reported to have agreed to issue an Internet service licence to Qualcomm, enabling the launch of the company’s wireless broadband network (using TD-LTE technology) in the country – a business which it subsequently intends to dispose of.

The news comes shortly after it was said that BSNL, which also holds wireless broadband spectrum, had offered to surrender its spectrum in most service areas, seeking a refund of INR83.1 billion (US$1.7 billion) it paid last year.

Qualcomm paid around US$1 billion for spectrum, but needed the service provider licence in order to actually use the frequencies. According to earlier reports, the US company missed a deadline for its submission, and made applications for permits via several subsidiaries – which meant it was ineligible.

Qualcomm bought the spectrum in order to ensure that it was used to launch networks powered by its preferred TD-LTE technology, rather than rival WiMAX. It has always stated that its intention is to then sell the business  – a process which would have been somewhat more complicated when it did not hold the necessary permits to offer services.

According to India’s Economic Times, BSNL has written to the country’s Department of Telecom to offer to hand back spectrum in 17 out of 21 circles. It argues that it has been allocated “non-standardised” frequencies, meaning that they cannot be used.

Business Today said that BSNL was issued with spectrum in the 2.4GHz band, while its commercial rivals bought 2.3GHz frequencies in an auction process. The operator was also set to use WiMAX, which together means the company will face “isolation in interoperability and roaming agreements,” it was noted.