Telenor India Communications (formerly Uninor) is in spectrum trading talks, in an effort to boost growth plans, said CEO Vivek Sood.
Sood said Telenor India, a subsidiary of Norway’s Telenor (OSE:TEL), is in early-stage discussions with all other local operators, a company spokesperson confirmed.
“We believe [spectrum trading] will help operators to strengthen network optimisation and efficient use of spectrum to offer a better customer experience,” he noted.
The Indian government approved spectrum trading earlier this month, saying it believes this will boost competition, improve service quality and make it easier to do business.
Under the new rules, operators are able to trade the right to use spectrum in all bands, although the government will retain ownership.
Shortly after the government announcement, Videocon Telecom, another smaller player in India’s crowded mobile market, said it was exploring possibilities around spectrum trading and expected to reach agreements “soon”.
According to local reports, Telenor India is one of at least two operators with which Videcon expects to sign a pact.
Telenor India appreciates needs additional spectrum to develop 3G and 4G services, said Sood, adding however that there is still demand for 2G.
Telenor India, which claims to serve 40 million customers in six telecoms service areas, aims to launch in a seventh (Assam) in early 2016. Sood said the company plans to participate in future spectrum auctions.
On Wednesday, Telenor’s Indian unit legally changed its name from Uninor to Telenor India. This follows Telenor taking full control of the business last year.
Announcing the name change, Telenor said the Indian business will market itself as a “best on value” provider.
Telenor president and CEO Sigve Brekke commented: “By taking a broader, value-driven position, Telenor India will appeal to new audiences with innovative services and a customer-first approach. We believe that the fundamentals in India remain strong with a large and young population and solid economic growth.”