Norway’s Telenor has said it would write down NKr4.2bn (US$720m) related to licences and goodwill in India.
This follows India’s Supreme Court decision to revoke 122 2G licences that were illegally granted by former telecoms minister A. Raja in…
Norway’s Telenor has said it would write down NKr4.2bn (US$720m) related to licences and goodwill in India.
This follows India’s Supreme Court decision to revoke 122 2G licences that were illegally granted by former telecoms minister A. Raja in 2008.
Telenor’s Indian JV Uninor is particularly affected by the ruling, with 22 of its licences to be cancelled within the next four months.
Following the write-down, Telenor said its remaining accounting exposure, after tax, related to India is NKr2.4bn (US$412m) as of 31 December 2011.
Media reports quoted analysts saying that this write-down has no bearing on whether Telenor will stay or exit India.
Contradictory reports have emerged regarding the company’s future in India.
Telenor itself stated on Friday (3 February) that it would not withdraw from the Indian market because its “intention is to fight to protect [its] lawful investments in the country.”
But both CEO Jon Fredrik Baksaas and head of Asian operations Sigve Brekke have also been quoted saying that leaving India was an option if no solution can be found.
