Telecom operator Telenor on Tuesday said it will not participate in the upcoming spectrum auction but decided to continue for sometime to lower exit cost and find alternatives for its business in Indi
Telecom operator Telenor on Tuesday said it will not participate in the upcoming spectrum auction but decided to continue for sometime to lower exit cost and find alternatives for its business in India.
The company has also indicated to take call on its future after evaluating impact of Reliance Jio commercial launch in India. “We need more spectrum in India to stay competitive in long term. Then, we have decided not to participate in upcoming spectrum auction. The reason we are not participating is the price levels that regulator has proposed. In the meantime we will fight to take our marketshare and take our fair share of market growth,” Telenor Group CEO Sigve Brekke said while announcing financial result of the group.
Telenor India, which targets subscribers that have low spending capacity, is reported to have 4.4 crore subscribers on its network.
While announcing financial results for the first quarter, Brekke had said, “Long term presence in India is dependent on our ability to secure additional spectrum.”
He said Telenor is waiting for launch of Reliance Jio to see its impact on India market.
Experts see that commercial launch of Jio’s 4G service will disrupt market. Telecom majors have already started slashing mobile internet rates to keep away the threat from Jio. Mukesh Ambani-led Jio claims to have 15 lakh users of its service even before its commercial launch.
Telenor reported widening of its operating loss in India to 132 million Norwegian Krone (about '105 crore at present exchange rate) in the second quarter ended June 30, 2016 compared to NOK 90 million ('71.3 crore) it posted a year ago.
