Telenor to write down NOK 3.9bn India exposure

Telenor ASA expresses concern over the acceptance of TRAI's proposals on spectrum auction by DoT. Telenor says that it would be forced to exit Indiam market if the current plans for spectrum auction goes ahead. Its exit plan is also due to the cancellation of 2G licenses.

Telenor would write down India exposure in its Q1 2012 financial results and it would be presented on May 8th, 2012. The company said, "As a precautionary measure, Telenor ASA has decided to write down the remaining fixed and intangible assets in India amounting to NOK (Norwegian Krone) 3.9 billion (NOK 2.6 billion after non-controlling interests)."

"If the recommendation from TRAI in its current form should be approved by the Department of Telecommunications (DoT), it will be almost impossible to participate in the auction for Telenor. Telenor is working actively towards Indian authorities to bring forward an acceptable framework for continued operations," company said in a statement.

Telenor said, "During the first quarter 2012, Uninor's operational performance in India has developed according to plan. After the write down, Telenor has no further accounting exposure related to India as of 31 March 2012."