Telenor hints at India exit, posts huge loss

Vizag, April 27

Advertisement

Posting a huge operating loss of 3,100 million Norwegian Krone (around Rs 2,530 crore) for its Indian telecom business, Telenor today hinted at exiting India if it fails to procure spectrum at reasonable rates.

At the same time, the Indian arm of Telenor looks to expand 4G footprint and said it would offer the lowest tariff for these services as part of its affordable pricing strategy.

While announcing financial results in Norway, Telenor global CEO Sigve Brekke said, “Long-term presence in India is dependent on our ability to secure additional spectrum. We are not able to compete with current spectrum portfolio we have in growing data market.”

Brekke said the company is looking at solution to procure spectrum and “a price that we can justify”.

“We are Looking at upcoming auctions and also looking at potential trading options... Need to be pragmatic to consider other alternatives if that turns out not to be a possible to find value focused solutions. We are looking at all sustainable business model option,” Brekke said.

Telenor India offer GSM-based services in six out of 22 circles in the country. pti