Norwegian telecoms group Telenor is looking for a new partner for its Indian operations before taking part in the upcoming 2G auction, scheduled to take place before 31 August, according to the Economic Times.
A few weeks ago, Telenor, which will have…
Norwegian telecoms group Telenor is looking for a new partner for its Indian operations before taking part in the upcoming 2G auction, scheduled to take place before 31 August, according to the Economic Times.
A few weeks ago, Telenor, which will have its 22 2G licences cancelled as decided by the Supreme Court, had threatened to leave India if the government accepts the regulator’s new auction proposal.
These proposals have been strongly criticised by several telcos arguing that the reserve prices are too high and the amount of spectrum available limited.
But earlier this week, India’s Telecom Commission said that more spectrum should be put up for sale during the auction. It also said that it would make an announcement on reserve prices this Saturday.
As a result, Telenor’s head of Asia Sigve Brekke was quoted telling the Economic Times that the company is now considering taking part in the auction. But before that, it wants to find a new partner for its Indian mobile unit.
Telenor currently operates Uninor, a mobile joint venture, with Indian real estate company Unitech. But the two companies have been embroiled in a dispute over the management of the venture for many months.
Telenor, which has a majority stake in Uninor, therefore announced a few weeks ago that it would shift its Indian operations to a new company and find a new partner for them. Unitech opposes the move and the companies have appealed to India’s company law board to settle the dispute.
Brekke was quoted saying that Telenor is already in discussions with several potential Indian companies but declined to give their names.
He added the new partner would have to fulfil three conditions: have a 26% stake in the JV (in order to comply with foreign ownership regulations in the country); give complete operational control to Telenor; and share Telenor’s views on the prospects of investing in India.