Telenor could exit from India when asset writedown

News / Telecom

Telenor could exit from India when asset writedown

  • 2012-05-01 15:44:15
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News / Telecom Telenor could exit from India when asset writedown
Telenor ASA (TEL.OS) said it should got to exit India, the world's second-largest mobile market, once the country's telecommunications regulator proposed an 11-fold increase to licence fees. In February, India's Supreme Court ordered a re-run of a mobile license auction originally held in 2008, once concluding it had been rigged and underpriced. As a consequence, Telenor's majority-owned Indian joint venture Unitech Wireless was ordered to come back all twenty two of its mobile licenses.

Chiefs of four telecom companies-- Bharti Airtel Chairman and Managing Director Sunil Bharti Mittal, Vodafone CEO Vittorio Colao, Telenor CEO Jon Fredrik Baksaas and Idea Cellular Chairman Kumar Managalam Birla are likely to Sibal tomorrow, sources said.

Chiefs of 4 telecom companies-- Bharti Airtel Chairman and Managing Director Sunil Bharti Mittal, Vodafone CEO Vittorio Colao, Telenor CEO Jon Fredrik Baksaas and Idea Cellular Chairman Kumar Managalam Birla are doubtless to Sibal tomorrow, sources said.

The companies conjointly warned that with high spectrum prices, mobile tariffs can get on my feet to 25- 30 per cent. They said that the high price for spectrum would rob operators of resources needed for network rollouts, a move that might keep at bay the business by many years. they need conjointly asked the minister to try and do away with Trai's rollout obligations.

Sigve Brekke, head, Telenor Asia, told ET, If these recommendations become policy, we'll be forced to exit India. it'll be not possible for us to continue operations here. this can be not a threat, it's a reality.
Categories: Telecom

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