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Follow UsMUMBAI, INDIA: Norway-based Telenor Group reported a huge fall of 79.12 percent in the first quarter earnings with net profit of 583 million Norwegian kroner.
“The recent recommendation from the regulator on spectrum auction, following the Supreme Court’s ruling to revoke all licences issued in 2008, has severe negative impact on both the telecom industry in India and Uninor,” Jon Fredrik Baksaas, President and CEO of Telenor Group, said in a statement on Tuesday.
The Norwegian firm operates in India in joint partnership with a realty group Unitech under the Uninor brand and holds 67 percent in the Indian venture.
Uninor is one of the telcos that has lost licences as per the Supreme Court’s cancellation order issued early February this year.
Post the apex court order, the Department of Telecommunications (DoT) has decided to start a fresh auctioning of 2G spectrum and telecom licences in coming June-July period.
Given this move, there’s a growing fear among operators about the auction and licences pricing as it is likely to be 10 times higher than previous pricing.
“If this should be approved by the Department of Telecommunications, it will be almost impossible for us to participate in the auction. We are working actively to safeguard our investment and urge the Government of India to clarify a sound framework for the industry,” Baksaas said.
The impact of company’s India operation has been to such an extent that Telenor Group has been forced to exclude India unit from its financial and business guidance for the fiscal 2012.
“Based on the high uncertainty in India, we are currently providing financial guidance for 2012 for the Group not including Uninor. On a comparable basis, the positive outlook is maintained,” Baksaas said.
Telenor has written off its remaining assets in India worth $680 million.