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NEW DELHI: Norwegian telecom operator Telenor plans to bid for 2G spectrum in the Mumbai circle, where it had lost its licences after annulment by the Supreme Court, in the proposed second round of auctions before the end of the current fiscal.
"There is most likely a new auction coming in the first quarter of next year. We will, of course, be looking at that, at least for one of our circle Mumbai, where we currently have our operations," the company's India managing director, Sigve Brekke, said at a press conference in Fornebu on Friday.
The statement came a day after the government approved a 30% cut in the reserve price for the four circles of Delhi, Mumbai, Rajasthan and Karnataka. After the deduction, the reserve price of the spectrum for the 1800 MHz band in Mumbai will be Rs 474.91 crore per block. Telenor will have to pay about Rs 1,900 crore for four blocks of spectrum if it bids for the Mumbai circle.
Chief executive Jon Fredrik Baksaas, however, said that India may have to reduce the reserve price further. "The 30% discount is a good target, but I think prices will have to be reduced even further," Baksaas said, according to the Wall Street Journal.
The Scandinavian company also said in a presentation that it had committed an investment of Rs 15,500 crore to its India operations, adding that it expected to reach operating break-even by the end of 2013. However, the company did not mention a time frame for its proposed investment in the country.
The first round of 2G spectrum auctions proved a failure as key circles were not bid for and spectrum in all but one circle was given at the minimum price.
Telenor announced last month that Uttar Pradesh East became its first circle to achieve break-even, three years after the launch. The company expects its remaining circles to begin achieving the break-even targets in the months to come and Gujarat and Maharashtra are expected to break even in early 2013.
Telenor will continue to offer low-cost voice plans and remain a mass market player in the Indian telecom market even as other operators have raised tariffs in order to sustain in the market.
Telenor bought airwaves in six circles UP East, UP West, Bihar, Andhra Pradesh, Gujarat and Maharashtra that account for over half of India's population, in the auctions held mid-November. It would opt for the staggered payment system, paying only one-third of the total Rs 4,018 crore plus in the first year and would look to offset this cost with the licence fee of Rs 1,658 crore paid upfront to the government in 2008.
Telenor split ties with real estate developer Unitech Limited after a bitter year-long legal dispute and assets of the joint-venture were transferred to Telewings Communications. Sun Pharma's executive director Sudhir Valia had bought 26% equity in the new entity through Lakshdeep Investment and Finance in October.
The firm had lost all its mobile permits following a Supreme Court verdict, fuelling speculation that it might look to acquire other Indian companies. But Baksaas said last month that Telenor was not scouting for new partners in India.
"We are ready to move forward in India,"" Brekke said and added, "we will continue to position our brand as the best price on local voice, to drive subscriber growth and increase customer loyalty in India as part of our continuous efforts of cost efficiency."
2G spectrum: Norwegian telecom operator Telenor may bid for Mumbai in 2013 auction - The Economic Times
"There is most likely a new auction coming in the first quarter of next year. We will, of course, be looking at that, at least for one of our circle Mumbai, where we currently have our operations," the company's India managing director, Sigve Brekke, said at a press conference in Fornebu on Friday.
The statement came a day after the government approved a 30% cut in the reserve price for the four circles of Delhi, Mumbai, Rajasthan and Karnataka. After the deduction, the reserve price of the spectrum for the 1800 MHz band in Mumbai will be Rs 474.91 crore per block. Telenor will have to pay about Rs 1,900 crore for four blocks of spectrum if it bids for the Mumbai circle.
Chief executive Jon Fredrik Baksaas, however, said that India may have to reduce the reserve price further. "The 30% discount is a good target, but I think prices will have to be reduced even further," Baksaas said, according to the Wall Street Journal.
The Scandinavian company also said in a presentation that it had committed an investment of Rs 15,500 crore to its India operations, adding that it expected to reach operating break-even by the end of 2013. However, the company did not mention a time frame for its proposed investment in the country.
The first round of 2G spectrum auctions proved a failure as key circles were not bid for and spectrum in all but one circle was given at the minimum price.
Telenor announced last month that Uttar Pradesh East became its first circle to achieve break-even, three years after the launch. The company expects its remaining circles to begin achieving the break-even targets in the months to come and Gujarat and Maharashtra are expected to break even in early 2013.
Telenor will continue to offer low-cost voice plans and remain a mass market player in the Indian telecom market even as other operators have raised tariffs in order to sustain in the market.
Telenor bought airwaves in six circles UP East, UP West, Bihar, Andhra Pradesh, Gujarat and Maharashtra that account for over half of India's population, in the auctions held mid-November. It would opt for the staggered payment system, paying only one-third of the total Rs 4,018 crore plus in the first year and would look to offset this cost with the licence fee of Rs 1,658 crore paid upfront to the government in 2008.
Telenor split ties with real estate developer Unitech Limited after a bitter year-long legal dispute and assets of the joint-venture were transferred to Telewings Communications. Sun Pharma's executive director Sudhir Valia had bought 26% equity in the new entity through Lakshdeep Investment and Finance in October.
The firm had lost all its mobile permits following a Supreme Court verdict, fuelling speculation that it might look to acquire other Indian companies. But Baksaas said last month that Telenor was not scouting for new partners in India.
"We are ready to move forward in India,"" Brekke said and added, "we will continue to position our brand as the best price on local voice, to drive subscriber growth and increase customer loyalty in India as part of our continuous efforts of cost efficiency."
2G spectrum: Norwegian telecom operator Telenor may bid for Mumbai in 2013 auction - The Economic Times
