Telenor wins 5MHz of 2G spectrum in 6 circles for Rs 40.18 bn

Telewings Cmmunications, the subsidiary of Norwegian telecom operator, Telenor Group has won 2G spectrum license in six telecom circles in the recent re-auction. Telenor's total bid in the spectrum auction was Rs 40.18 billion of which 33 per cent has to be paid up front.

The company has secured 5 MHz of spectrum in Andhra Pradesh, Uttar Pradesh East, Uttar Pradesh West, Bihar, Gujarat and Maharashtra. "All Uninor assets in these circles, including customers, employees, partners and infrastructure will be seamlessly transferred to the new company and services will continue uninterrupted," said Telenor in a statement.

Telenor was not awarded spectrum in Mumbai, Kolkata and West Bengal. In these circles operations will cease in accordance with Indian law and regulations.

"The fresh licenses provide clarity for customers, operators and partners after a long period of uncertainty. We are looking forward to a more predictable and stable regulatory environment," said Telenor Group President and CEO, Jon Fredrik Baksaas.

"Today we have won spectrum the 6 most populous circles in India. These are also the areas where we enjoy a strong position already, and where we see the highest potential for continued growth and profitability. All of these circles are about to deliver on the financial targets of becoming break-even in 2013," said Sigve Brekke, Executive Vice President and Head of Telenor Group's Asian Operations.

"The ten months of uncertainty after the license cancellation have tested the organization's ability to keep focus, growth and talent intact. Emerging successful in that test means that a much stronger, confident and competitive team has now won back its right to continue. We have brought competition and affordability to the Indian telecom sector, and I promise that we will continue to do that in the future," said Sigve Brekke.