Telecor presents 2012 forecasts excluding Indian operations

Telecor presents 2012 forecasts excluding Indian operationsNorwegian telecom firm Telenor has presented its 2012 forecasts but has excluded the figures from its Indian operations due to ongoing uncertainties in the country over the telecom policy and licenses held by the company.

The telecom service provider posted net loss of 390 million crown including writing off the remaining 3.9 billion crown value of its Indian unit Uninor. The company had recorded a profit of 3 billion in the previous year. While company faced troubles in India, other key markets showed signs of improvement during the quarter.

Telenor had earlier said that it will include a 4.2 billion kroner write-down in India in its fourth-quarter following a ruling from the Supreme Court is India that cancelled 122 telecom licenses in the country.

Telenor had sort help from the Norwegian government to protect its investment in India after the ruling by the apex court in India. Telenor and Unitech jointly operate the Uninor brand in India through a joint venture. The joint venture between the two is one of the firms that will see its license being cancelled.

The Supreme Court of India has scrapped the validity of all 122 spectrum licenses that were granted to telecom firms during the former communications minister A Raja's time in office.

The court cancelled all the licenses on the ground they were issued in a "totally arbitrary and unconstitutional" manner. It also imposed a fine on three telecom companies that offloaded their shares after getting the licenses.

Telenor believes that its investment and its 36 million customers are threatened by the ruling in the county. The company might be forced to spend more to regain its licenses.



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