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Uninor to scale back operations in four Indian circles
26 July 2012
Uncertainty around 2G auction policy causes cut-backs
Indian mobile network
operator, Uninor is to downsize operations in four Indian telecom circles – Tamil
Nadu, Kerala, Karnataka and Orissa, reports local media. The Times of India,
citing a company statement said the step has been taken amid the continuing
uncertainty around the 2G auction policy and the delay in decision-making by
authorities. The Gurgaon-based operator will now utilise its funds and equipment
in the remaining nine circles and will assess possibilities of relocating some
of the employees of the four circles to other Uninor circles.
India’s Supreme Court
had ordered cancellation of 122 licences issued in 2008, including 22 licences held
director, Sigve Brekke, said: "Since the Supreme Court order, we have
pursued every possible measure to take our business forward in its current
form. However, we are now forced to take this difficult but necessary decision.
Our plan now is to enter the auctions with a very strong presence in these nine
circles, auction rules permitting."
The joint venture
between Telenor and real-estate company Unitech, said it will stop acquiring
new customers in the four circles. It said it will also announce a gradual scaling
down of network over a period of time, reported the Times of India.
president and CEO, Jon Fredrik Baksaas, said in a statement: "Since
February 2, Telenor Group has continued to single-handedly provide financial
backing to Uninor on the belief of an early resolution. However, with no sight
of either auction rules or dates six months later, we support Uninor in taking
this financially prudent decision. Telenor Group will continue to extend
funding support to Uninor with its focus on nine commercial circles and urges
the Indian government to provide clarity at the earliest." GTB