Telenor writes-down Indian assets, threatens to withdraw over TRAI recommendations

1 May 2012

Norway’s Telenor Group, which operates in India through joint venture Uninor, has announced its decision to write-down its fixed and intangible assets in India, valued at NOK3.9 billion (USD680.26 million). The move followed in the wake of recommendations proposed by the Telecoms Regulatory Authority of India (TRAI) suggesting a significant price hike for spectrum when it is reauctioned later this year. In a statement, Telenor said that ‘uncertainty has increased significantly,’ adding that it might be forced to withdraw from the Indian market altogether: ‘If the recommendation from TRAI in its current form should be approved by the Department of Telecommunications (DoT), it will be almost impossible to participate in the auction for Telenor.’ As a result of the write-down, which will be included in the group’s Q1 2012 results, Telenor said it had no further accounting exposure relating to India as of 31 March 2012.

India, Norway, Department of Telecommunications (DoT), Telecom Regulatory Authority of India (TRAI), Telenor Group, Telenor India