Telenor misses out as Telecom Italia grabs 49% of Unitech Wireless

18 Sep 2008

Telecom Tiger is reporting that Telecom Italia (TI) has beaten Norwegian telecoms group Telenor in the race to acquire a stake in Unitech Group’s mobile arm, Unitech Wireless. Despite recent reports suggesting that Telenor looked the more likely to partner with the Indian company, it has now been confirmed that TI will pay USD2 million for a 49% stake in the venture; Unitech and TI have announced they will now create a new entity as part of the deal. The report suggests that Telenor lost out due to its desire to take a controlling stake in the joint venture, against the wishes of Unitech. Unitech has a pan-India licence for 2G services, and the funds from TI are expected to be used for network rollout and bidding for 3G spectrum.

India, Telecom Italia (TIM), Telenor Group