Telenor rights down the remainder of Uninor investment as uncertainty rises in India

Telenor wrote-down the remaining value of its business in India, noting in a statement that if a proposed spectrum issue goes forward in its current form, “it will be almost impossible to participate in the auction for Telenor.”

India’s telecom regulator, Telecom Regulatory Authority of India (TRAI) recently proposed that a pan-Indian licence in the reconstituted spectrum auction in the 1800MHz band should cost around Rs3,622 crore (US$680 million). The TRAI recommended a reserve price for 800MHz and 900MHz bands that will be at least double that set for the 1800MHz band, at Rs7,244 crore.

Telenor said that during the first period of the year, its Uninor venture “developed according to plan.” However, following the cancellation of its licences earlier this year – along with those of many of its peers – and recent recommendations produced by the TRAI, Telenor said that “the uncertainty has increased significantly.”

It said that it is working with the Indian authorities to “bring forward an acceptable framework for continued operations.”

Telenor has written-down the value of its Indian holding by an additional NOK3.9 billion (US$682 million). After this, it will have no further accounting exposure to India. It has already taken a charge of NOK4.1 billion related to the Indian operation.