Telenor finds no irregularity with India licences

Published 11/20/2010, 03:10 PM
Updated 11/20/2010, 03:12 PM

* Says licence award system in 2008 has changed since

* Regulator said Indian licences were awarded too cheaply

By Gwladys Fouche

OSLO, Nov 20 (Reuters) - Norway's Telenor denied on Saturday that its Indian subsidiary Uninor had won mobile phone licences in an irregular manner, the Norwegian news agency NTB reported.

India's telecoms regulator has called for 38 mobile licences, including some held by Uninor, to be cancelled amid a political scandal that is shaking the government of Prime Minister Manmohan Singh.

The regulator said on Thursday that the licences were awarded too cheaply, and may have cost India a potential $31 billion. The accusations have led to the sacking of Telecoms Minister Andimuthu Raja.

"We have now investigated how our licences were awarded and have not found any irregularities," Telenor spokesman Glenn Mandelid told NTB.

Telenor had not yet established itself on the Indian mobile market when the licences were awarded in 2008. Later that year it bought stakes in local firm Unitech, which was awarded the permits. That firm is today called Uninor.

Mandelid said the award system in 2008 was not the same as today's. "Indian authorities feared the telecoms market would turn into a monopoly so they operated under a 'first come first served' principle," he said.

"The award system was the same from 2000 to 2008 when Unitech got its licence. Since then they have gone over to an auction system."

Telenor has about 13.5 million customers in the country's highly competitive mobile market.

It has praised its strong market development in the third quarter but said its Indian operations would post and EBITDA (earnings before interest, tax, depreciation and amortisation) loss of 4.5 billion crowns ($775 million) in 2010. (Editing by David Stamp)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.