Norway’s Telenor writes down remaining Indian assets worth $680.9 million

Telenor 300x228 Norway’s Telenor writes down remaining Indian assets worth $680.9 millionTrai’s auction proposal that already faced refusal from the five top telecom companies is now opposed by a great disapproval from side of Norway’s Telenor that has showed it recently by written downing its 3.9 billion Norwegian crowns ($680.9 million) assets in India.

The company’s downing decision is forthcoming step to exit from Indian market if the government approved Trai’s proposal to hike reserved price upto to 13 times the price used in 2008.

Asking about its recent decision to written down remaining fixed and intangible assets in India, the head of the company’s Asia unit said that it was difficult for it to perform operations in the country where more than a billions people live.

“If these recommendations become policy, we will be forced to exit India. It will be impossible for us to continue operations here. This is not a threat, it is a reality,” Telenor Executive Vice-President & Asia head Sigve Brekke said while talking to reporters.

In 2008, Telenor acquired the biggest stake of Delhi-based real estate company, Unitech, but due to cancellation of licenses by Supreme Court on February 2 order in the 2008 2G scam, it lost its share and also itself sold plans to exit from Indian market.
At present, over all $3 billion has invested by Telenor in India and if it decide to exit as per forecast to break with Uninor, in 2013, then it would directly affect its growth and declining its scope in Asian and emerging markets like in Europe.

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