Telecom Company Telenor to Break Even in India by the end of 2013

By Tuesday, March 19, 2013 0 , Permalink 0

Jon-Fredrik Baksaas, CEO and President of the Telenor Group told PTI that the company expects to achieve break even by the end of December month this year. Telecom Group’s Indian arm, Uninor, offers its services in Bihar, Gujarat, Andhra Pradesh, East UP and West UP. The company had secured spectrum for these six places for Rs. 4,018 crores in an auction held in the month of November. The price paid for the spectrum was eight times higher than the amount the company had paid in 2008 for 22 permits.

The 122 licenses which were cancelled last year in February by a Supreme Court Order included Uninior’s 22 licenses.  The Telenor group is presently transferring its assets to Telewings which is the company’s new entity in which Telenor has a 74 per cent stake.

Lakshdeep Investments and Finance have been signed as new partner by Telenor for its Telewings Communications.  The Government has also allowed Uninor, formerly Unitech, to adjust the license fee of Rs. 1,658 crore that the company had paid in 2008 as against the price the company will be paying for buying spectrum.

During February, Uninor, lost around 8.34 million subscribers and presently has a customer base of 31.77 million. The company has closed down its telecom operations in a number of circles and now just wants to focus on strengthening its operations in six circles.