tech_genie
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Uninor to shut down services in Mumbai, Kolkata and West Bengal
Telenor will have to give up operations in Mumbai, Kolkata and West Bengal after it managed to secure only six circles in the spectrum auctions.
The company’s Indian venture Uninor said the operations in these 3 circles will continue till January 18 after which its licences will stand cancelled.
“Our services will remain operational until a final decision is taken,” Uninor said.
Telenor won six circles for Rs 4018 crore of which 33 per cent is to be paid up front. The company secured 5 MHz of spectrum in Andhra Pradesh, Uttar Pradesh East, Uttar Pradesh West, Bihar, Gujarat and Maharashtra.
“With a total population of about 600 million people and an actual mobile phone customer penetration of just 40 percent, these States represent a strong growth opportunity for Telenor Group,” the company said.
All Uninor assets in these circles, including customers, employees, partners and infrastructure will be seamlessly transferred to the new company and services will continue uninterrupted.
“The fresh licences provide clarity for customers, operators and partners after a long period of uncertainty. We are looking forward to a more predictable and stable regulatory environment,” said Telenor Group President and CEO Jon Fredrik Baksaas.
“Today, we have won spectrum the six most populous circles in India. These are also the areas where we enjoy a strong position already, and where we see the highest potential for continued growth and profitability. All of these circles are about to deliver on the financial targets of becoming break-even in 2013,” said Sigve Brekke, Executive Vice-President and Head of Telenor Group's Asian Operations.
“We have brought competition and affordability to the Indian telecom sector, and I promise that we will continue to do that in the future,” said Sigve Brekke.
