Telenor seeks help from Norway to protect Indian investment (Norway, India)
Following the Supreme Court ruling in India wherein it revoked 122 2G licences, telecommunications company Telenor has turned towards the government in Norway to help protect the future of its US$ 2.9 billion investment in India. Telenor controls a 67.25 per cent equity stake in Unitech Wireless and offers nation-wide mobile services under the brand name Uninor.
According to reports, Rigmor Aasrud, IT Minister, Norway met with India’s Telecom Minister Kapil Sibal to arrive at Telenor’s future in the country following the cancellation of the licences. After the meeting Aasrud said that they had a good, fruitful and constructive meeting with the telecom minister and they took up Telenor’s case along with other issues.
Kapil Sibal stated that both the IT minister and the Telenor official met him to share their perceptions and they had a dialogue on this issue. He told them that the SC verdict will bring clarity to the sector, the sector is robust and enough spectrum is available. Further, the National Telecom Policy 2011 which will be put out will be fair and robust.
Sibal added that India’s market is full of opportunities and no-one should be in doubt on the investments to come into India.
Sigve Brekke , managing director, Uninor has said that they are talking to the government because they need to protect their investment and they also need to make sure that there is a framework for continuing their operations in the country.
Telenor aims to increase stake in Unitech to 74 percent (Norway, India)
Telenor Norway has reportedly revealed plans to increase its holdings in Unitech Wireless, which offers mobile services in India under the brand name ‘Uninor’, to 74 percent from 67.25 percent. The remaining stake is held by realty firm Unitech. The Norweign operator has reportedly told the Foreign Investment Promotion Board (FIPB) that it would induct other resident Indian shareholders in the event that its partner refused to support the rights issue.
According to reports, the two partners have been involved in a dispute regarding the US$ 1.6 billion rights issue, as Unitech has reportedly opposed Telenor’s plans for the issue. As per sources, Fredrik Baksaas, CEO, Telenor group, had previously stated that it would look at inducting another partner for its Indian operations if Unitech does not meet its obligations and participate in the rights issue.
Telenor to raise $ 1.64 billion in JV (India)
Telenor, Norway based telecommunication company, aims to raise $ 1.64 billion in its Indian joint venture, Unitech Wireless. Telenor had partnered with Indian real estate firm, Unitech Ltd., to provide mobile phone services through Unitech Ltd.
As per reports, in the event that Unitech does not participate in the rights issue, its stake in the joint venture may come down. Sources claim that Telenor, which owns 67.25% of the joint venture, can admit a second Indian partner if Unitech doesn’t participate in the rights issue.
DoT sends show-cause notice to Unitech Wireless (India)
Unitech Wireless Ltd. has confirmed that it has received a show-cause notice from the Department of Telecommunications (DoT), as India starts cracking the whip on companies that received telecom licenses in 2008 despite allegedly being ineligible.
Telenor ASA has stated that it will respond to the notice within the stipulated time.
According to Unitech Wireless, as a credible operator with over 16 million subscribers, they welcome the DoT’s intent to bring in transparency, justice and equity through this structured approach.
Last month, a government auditor condemned the telecom department’s allocation of licenses and bandwidth in 2008, a process that was allegedly manipulated and caused a potential revenue loss of up to $39 billion to the government.
Following the report, the Federal Government stated that it will issue notices to 85 companies that received licenses in 2008 despite not meeting eligibility criteria.
India’s telecom regulator last week proposed cancelling 38 licenses of telecom operators including the Indian joint ventures of Telenor, Emirates Telecommunications Corp. and Sistema JSFC.
Telenor holds a 67.3% stake in Unitech Wireless, its joint venture with Indian real-estate company Unitech Ltd.
Bharti Airtel gives highest tele revenue to government in Q2 (India)
Bharti Airtel has paid the highest amount of over US$ 210.35 million to the government in terms of license fee and spectrum usage charge for the quarter ended September 30.
According to the data compiled by telecom regulator TRAI, Bharti paid US$150.18 million as license fee and US$60.18 million as the spectrum charge for the quarter.
While, new players like Etisalat, Unitech Wireless, Loop STel and Sistema Shyam Teleservices, who got the radio waves spectrum in 2008, paid US$ 10.72 million as the spectrum charge and license fee to the government.
Bharti was followed by Vodafone Essar, which has paid a combined amount of US$130.72 million for the quarter. Besides, the two state-run firms BSNL and MTNL have paid US$120.87 million for the same.
Videocon & SK telecom talk over offloading of shares (South Korea)
www.WirelessFederation.com/news: In a latest attempt to bring in a foreign partner for the fledgling mobile phone services, Videocon Telecommunications has started talks with Korea’s Sun Kyung (SK) Telecom to sell a 26% stake. Rs 3,600 crore is expected by the founding Dhoot family from the sale valuing Videocon Telecommunications at a little over Rs 13,000 crore ($3 billion), an amount the analysts feel is too much and estimating the worth of the company at only about $2 billion.
SK Telecom has nearly 50% market share in South Korea and has been scouring for opportunities overseas lately and as far as the Videocon Telecommunications is concerned it has also been linked to a buyout by Mukesh Ambani’s Reliance Industries, whose board is believed to have recently authorized its re-entry into the telecoms space following the peace deal between the Ambani brothers. SK Telecom already provides phone services in China, the US and Vietnam and last month it announced new ventures in Malaysia and Indonesia
No comment has been made by Videocon Group chairman and MD VN Dhoot on a potential deal with SK Telecom but he asserted that the company is evaluating proposals from global communications firms for a strategic partnership.
According to one of the analysts, Mr Dhoot has publicly said that the telco is worth over Rs 12,000 crore, but it remains to be seen if any investor will enter at this price, which we consider a premium, especially under current market conditions and added that the global firms wanting to enter the world’s fastest-growing telecoms market would only pay a premium for a controlling stake and not minority ownership.
Talks with the UAE’s Etisalat and Turkish telco Turkcell had been abandoned by the Dhoot family amid differences over valuation and its talk with Norway’s Telenor also failed as the latter bought Unitech Wireless.
S-Tel India crosses one-million subscribers.
www.WirelessFederation.com/news: Over one million subscribers have been added by telco S-Tel within 90 days of the launch of its services in India. A joint venture between Chennai-based Siva Group and Bahrain Telecommunications, S-Tel started its services in December 2009 and currently operates in Bihar, Orissa and Himachal Pradesh.
S Tel along with Unitech Wireless, Swan Telecom, (now known as Etisalat DB) and Datacom got the license last year and it has spectrum to offer services in six circles and plans to launch services in Assam, Jammu & Kashmir and North East this year.
According to S Tel Chief Executive officer Shamik Das, the company made a positive start in December 2009 and is delighted to achieve a sizeable base of 1 million S Tel subscribers within just 90 days of service launch.
Last month, the telecom department had directed S Tel to stop mobile services on security concerns but the directive was later withdrawn.
Unitech Wireless enters five more circles in India
www.WirelessFederation.com/news: Five more telecom-service areas in India will start receiving mobile service from Unitech Wireless, a joint venture between India’s Unitech Ltd. and Norwegian telecommunication company Telenor ASA.
Unitech Wireless after launching its operations in eight of the India’s 22 telecom service areas in December will next enter the service areas of Mumbai, Maharashtra, Kolkata, West Bengal and Madhya Pradesh. Unitech Wireless operating under the Uninor brand currently has about 2.5 million subscribers.
Meanwhile, Telenor has invested about INR20.22 billion more in the joint venture as planned for a 7.15% stake, taking the Norwegian company’s total stake in Unitech Wireless to 67.25%.
All inclusive deal inked between Uninor & Harris Stratex
www.WirelessFederation.com/news: An all inclusive deal has been signed between mobile network operator Unitech Wireless (Uninor) and US-based vendor Harris Stratex covering the supply, installation, commission and maintenance services, as well as the backhaul of access microwave links.
The latest Eclipse platform microwave solution of Harris Stratex will also be supplied by Harris Stratex under this five year contract to meet both TDM and IP backhaul requirements.
According to Harald Braun, president and CEO of Harris Stratex, the company is proud to help enable this coverage with its industry-leading Eclipse platform, and world-class service and support.
Further 11.1% stake in Unitech acquired by Telenor
www.WirelessFederation.com/news: In INR14.9 billion (USD325.79 million) deal, further 11.1% stake was acquired by Norwegian telecoms group Telenor in Indian mobile network operator Unitech Wireless. The acquisition is the third tranche of a four-step investment plan with Unitech issuing fresh shares to enable the purchase.
With the latest investment, approximately INR41 billion has been spent by Telenor, bringing its overall stake in Unitech to 60.1%. The third and fourth investment tranches is expected to complete by the end of first quarter of 2010 bringing Telenor’s stake in Unitech Wireless to 74%.
