Income tax department seizes Unitech’s shares in Unitech Wireless (India)
Unitech wireless ltd. revealed that the Indian Income Tax department had taken control of Unitech’s shares, but said that such a decision will not impact its operations.
As per reports, Acorus Unitech Wireless Pvt. Ltd., Cestos Unitech Wireless Pvt. Ltd. and Simpson Unitech Wireless Pvt. Ltd, all three Unitech units owe taxes amounting to US$ 137 million.
Regarding its Indian telecom venture, Uninor, the operatot has clarified that that this has nothing to do with the running operations of Uninor, and neither has any effect on them.
Unitech asks Telenor for US$ 150 million to end partnership in joint venture (Norway, India)
In an attempt to put an end to the dispute, Unitech has demanded a payout of US$ 150 million for its 32.7 per cent stake in the joint venture with Telenor, according to a report by ET. As per the report, the firm suggested this to the Company Law Board when asked if it would like to buy out Telenor’s 67.25 per cent stake or exit the venture.
The report reveals that a Telenor spokesperson has said that both parties have been asked by the Company Law Board (CLB) not to comment on the proceedings that took place within closed chambers. On their part, they will respect the directions of the CLB. What they have earlier stated it is that the partnership with Unitech is over, and it is their intention to form a new company to which Uninor’s assets can be transferred. This company will form the platform with which they will approach the upcoming auction.
Uninor subscriber base crosses 38 million (India)
Telecom operator Uninor has reported subscriber additions amounting to 2.49 million in January this year, reaching a total customer base of 38.79 million.
This brings great news to telecom operator Uninor, a joint venture between Telenor Norway and Unitech, whose 22 licenses were cancelled by the Indian Supreme Court earlier this month, claiming that the licences were obtained by illegal means.
As per a company statement, Uninor has claimed that in their 13 commercial circles in 2011, the highest number of subscribers chose Uninor. Further, they are satisfied to see that this strong preference continues into 2012 as well.
The operator added that it is their intention to continue competing as a mass market mobile service and ensure that the Indian mobile users continue to benefit from this competition.
Telenor had recently announced that it plans to form a new joint venture with another Indian entity in an attempt to continue its operations in the country.
Battered partnership of Telenor – Unitech (India, Norway)
The Telenor Group has issued a notice to its Indian strategic partner Unitech Ltd., soliciting compensation for damages to their mobile venture. Issuance of notice was an outcome of the Indian Supreme Court’s verdict, where it has ordered the cancellation of 22 Uninor licences. The licences were cancelled in light of a telecom scandal in 2008. As per the partnership, 67.25 per cent of the company was owned by Telenor, and the company has alleged that Uninor has breached the confidentiality obligation.
According to sources, the partnership hit a bitter note in 2011 when Unitech stayed out of Uninor’s US$ 1.7 billion rights issue and as a continuation to the split saga, the involvement of Unitech boss Sanjay Chandra in the 2G scam case compelled Telenor to ask for his resignation as the chairman. Further on, in October last year, Telenor was accused of complete mismanagement by Unitech and the case was cited to the Company Law Board.
Telenor has estimated the total worth of the mobile company to be around US$ 2.22 billion -2.42 billion, but inspite of disapproving the calculated figure by Telenor, Unitech has offered to purchase Telenor’s 67.25 per cent share as per the aforesaid calculation. Every allegation raised by Telenor has been rubbished by Unitech and affirmed that the company has not committed any breach of confidentiality.
Shahid Balwa resigns from DB Group (India)
DB Group Managing Director, Shaid Balwa has resigned from the company. He was arrested on Feb 8 as part of the ongoing probe into the 2G scam by the Central Bureau of Investigation (CBI).
The company, that has arms in realty, hospitality and telecoms, stated that the board had accepted his resignation.
Balwa’s DB Realty had floated Swan Telecom, which was allegedly favored by former telecoms minister, A Raja during the 2008 2G spectrum auction.
The CBI suspects that in 2008, when the government was allocating 2G spectrum for mobile phone networks, Raja might have twisted the rules to benefit a few companies – especially Swan and Unitech.
Swan and Unitech sold equity to foreign companies much before they began the launch of their services.
The DB group’s telecom arm, earlier known as Swan Telecom, is now known as Etisalat-DB.
TDSAT directs Uninor to pay 60% penalty (India)
Telecom tribunal TDSAT has directed Uninor to pay 60% of the penalty, demanded by the Department of Telecom (DoT), for failing to launch services within the stipulated period.
The Telecom Disputes Settlement and Appellate Tribunal bench, headed by TDSAT chairman Justice S B Sinha, allowed Uninor’s plea but directed it to pay around US$1.98 million within two weeks.
According to TDSAT in an interim order, in their opinion, keeping in view the interest of the parties, interest of justice would be sub served if the petitioners Uninor are directed to deposit 60% of the demanded amount within two weeks.
The tribunal observed that Uninor has raised the issue of delays in getting the start up spectrum from SACFA (Standing Advisory Committee for Frequency Allocation) and it needs to be determined by the bench.
According to bench, Uninor, in their opinion, have raised a prima facie case in as much as the question as to what is meant by start up spectrum or average delay are questions involving interpretation of different provisions of the licence about the other documents filed by it.
Rejecting DoT’s contention, TDSAT observed that the government should have given an opportunity to Uninor to give its opinion before demanding Liquidated Damages (LD) for delays in roll-out obligations.
Later, Uninor stated that they welcome the TDSAT’s interim order today that acknowledges the merit of our arguments.
Uninor, a JV between Unitech and Norway’s Telenor had approached TDSAT on January 4, challenging DoT’s directive.
Telcos pay penalties for missing roll-out obligations? (India)
Certain new telecom operators including Etisalat DB are understood to have paid penalty to the government after facing cancellation of licences for missing launch obligations.
According to sources, Etisalat DB, a joint venture between Swan Telecom and UAE-based Etisalat, has paid about US$2 million to the Department of Telecom (DoT) for missing the deadline to launch its network or expand services in four circles.
Uninor, a joint venture between realty major Unitech and Norway’s Telenor, has stated that the company has paid the penalty as demanded by DoT, however, under protest.
According to company’s statement, various factors, including delay in clearances required for each site, new last minute pre-launch testing requirements and new equipment security clearance processes, came in the way of roll out and were beyond their control. They have requested the DoT to consider these in its assessments. As a serious long term operator with considerable presence in India, they intend to continue delivering the benefits of competition to customers in the country.
Some more operators’ including Loop Telecom and Videocon are also facing action for missing the roll-out deadline, but it could not be ascertained if they too have paid the penalty.
India threatens to cancel licenses of 85 telcos
The new telecom Minister Kapil Sibal has stated that the Indian government is planning to send 85 notices to telecom operators questioning their licenses.
According to officials, Kapil Sibal took the top spot in India’s telecom ministry earlier this month after Andimuthu Raja was forced to resign, accused of granting 2G spectrum and licenses at low prices and possibly costing the state $39 billion in revenue.
According to Sibal, many of the companies, which went through a self-certification process, were not eligible for the 2G licenses granted in 2007 and 2008. This has serious implications for transparency of process. It allow companies to get ahead of the queue on basis of first come first served, in that they did not register first with the registrar of companies. Notices will be sent to the companies mentioned in a report by the Indian government auditor.
The report named Uninor, a unit jointly owned by Unitech and Norway’s Telenor, Etisalat DB Telecom, into which Swan Telecom and Allianz Infratech later merged, Loop Telecom, Videocon Telecommunications and S Tel.
Sibal added that the companies would have 60 days to reply and 52 weeks to fulfill rollout obligations, failing which their licenses could be revoked.
Telenor finds no irregularity with India 2G licenses
Norway’s Telenor has reportedly denied that its Indian subsidiary Uninor had won mobile phone licenses in an irregular manner.
India’s telecoms regulator has called for 38 mobile licenses, including some held by Uninor, to be canceled amid a political scandal that is shaking the government of Prime Minister Manmohan Singh.
As per TRAI, the licenses were awarded too cheaply, and may have cost India a potential $31 billion. The accusations have led to the sacking of Telecoms Minister Andimuthu Raja.
According to Telenor spokesman Glenn Mandelid, the company has now investigated how their licenses were awarded and have not found any irregularities.
As per Mandelid, the award system in 2008 was not the same as todays. Indian authorities feared the telecoms market would turn into a monopoly so they operated under a first come first served principle. The award system was the same from 2000 to 2008 when Unitech got its license. Since then they have gone over to an auction system.
Telenor has about 13.5 million customers in the country’s highly competitive mobile market.
DoT has no plans to withdraw 2G spectrum
As per the Department of telecom (DoT) secretary and telecom commission chairman R Chandrasekhar, there was no plan to withdraw 2G spectrum allotted in 2008 from any of the players.
According to India’s chief auditor, CAG, many of the licenses given to five of the nine telecom companies were illegal. Swan (now Etisalat), Datacom (Videocon), Unitech (which ceded majority control to Norways Telenor), Sistema-Shyam and Essar Group-owned Loop Telecom were given pan-India licenses and airwaves for a mere 1,651 crore each.
Apart from these five companies, Reliance Communications and Tata Teleservices were also given GSM and CDMA licenses, at prices fixed in 2001. Similarly, auction of 3G airwaves early this year fetched the government US$15077.50 million
According to Mr Chandrasekhar, at this moment, there is no proposal before the department to take back any of the spectrum from any of the players.
