Unitech has decided to pull out of the telecom sector, managing director Ajay Chandra told the Economic Times. Unitech, the local partner of Norway’s Telenor in their joint venture, Uninor, will not enter a bid for a new telecoms licence when the 2G frequencies are re-auctioned. Instead, the company will focus on its real estate business. Chandra added that the decision to enter the mobile market was a mistake: ‘Telecom is not our core competency. Our competence is real estate and we will stick to real estate.’
As previously reported by CommsUpdate, following the cancellation of Uninor’s 2G licences in February, Telenor announced that it would split from Unitech and seek another partner; the ensuing dispute saw India’s Company Law Board (CLB) order Unitech to either purchase Telenor’s share of Uninor, or sell off its stake in the company. Unitech agreed to a sale, but disputed the value of its shares with Telenor. Unitech’s share in Uninor were subsequently frozen by the Income Tax Department due to alleged outstanding tax dues amounting to INR7.01 billion (USD134.31 million).