Uninor to launch NLD network via leasing deal with TTSL

26 Jan 2012

Uninor, the Indian subsidiary of Norwegian telecoms group Telenor, has reportedly inaugurated its own national long-distance (NLD) network via a long-term bandwidth leasing pact with Tata Teleservices (TTSL), according to India’s Economic Times. Having previously relied on NLD networks owned by Tata Communications, Vodafone Essar and Bharat Sanchar Nigam Ltd (BSNL) to carry its subscriber trunk dialling (STD) traffic, the move is seen as a means to reducing the high carriage and termination fees it was paying out due to such a setup. Commenting on the development, Sigve Brekke, Telenor’s executive vice-president and head of Asian operations, noted: ‘By launching its own NLD network, it is evident this company is planning for the long term and intends to compete not through irrational tariff disruptions but in a sustainable way.’ The executive also added that Uninor will lease capacity from TTSL, rather than actually build its own network, while also claiming that the plans are expected to save at least 30% per annum in costs by migrating its STD traffic to the NLD network. ‘This cost efficiency will also keep our tariffs at current competitive levels in a sustainable manner,’ added Brekke.