1. Telenor entered India in 2009 by forming a joint venture with Unitech Ltd, acquiring a 67.25% stake in the venture called Uninor.
2. In February 2012, the Supreme Court cancelled Uninor's licenses along with 121 other licenses. Telenor sent a notice to Unitech seeking indemnification and compensation.
3. For Telenor to continue operating in India, it would need to rebid for licenses at a much higher estimated cost of 11,000 crores compared to the 1,700 crores it had already invested. The high costs and legal issues have made Telenor's continued participation in India uncertain.
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1. Telenor entered India in 2009 by forming a joint venture with Unitech Ltd, acquiring a 67.25% stake in the venture called Uninor.
2. In February 2012, the Supreme Court cancelled Uninor's licenses along with 121 other licenses. Telenor sent a notice to Unitech seeking indemnification and compensation.
3. For Telenor to continue operating in India, it would need to rebid for licenses at a much higher estimated cost of 11,000 crores compared to the 1,700 crores it had already invested. The high costs and legal issues have made Telenor's continued participation in India uncertain.
1. Telenor entered India in 2009 by forming a joint venture with Unitech Ltd, acquiring a 67.25% stake in the venture called Uninor.
2. In February 2012, the Supreme Court cancelled Uninor's licenses along with 121 other licenses. Telenor sent a notice to Unitech seeking indemnification and compensation.
3. For Telenor to continue operating in India, it would need to rebid for licenses at a much higher estimated cost of 11,000 crores compared to the 1,700 crores it had already invested. The high costs and legal issues have made Telenor's continued participation in India uncertain.
Copyright:
Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPT, PDF, TXT or read online from Scribd
1. Telenor entered India in 2009 by forming a joint venture with Unitech Ltd, acquiring a 67.25% stake in the venture called Uninor.
2. In February 2012, the Supreme Court cancelled Uninor's licenses along with 121 other licenses. Telenor sent a notice to Unitech seeking indemnification and compensation.
3. For Telenor to continue operating in India, it would need to rebid for licenses at a much higher estimated cost of 11,000 crores compared to the 1,700 crores it had already invested. The high costs and legal issues have made Telenor's continued participation in India uncertain.
Copyright:
Attribution Non-Commercial (BY-NC)
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Download as PPT, PDF, TXT or read online from Scribd
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Presentation over Uninor Telecommunications (Its position and strategy after 2G licence cancellation)
Present Scenario 1. Uninor is an Indian mobile network operator headquartered in Gurgaon, India. The company holds Unified Access Service(UAS) licences to offer mobile telephony services in each of Indias 22 telecom circles, and has received spectrum to roll out services in 21 of these (excluding Delhi). 2. The company is a joint venture between Telenor Group, a telecommunications company headquartered in Oslo, Norway, and Unitech Group, an Indian real estate company. Telenor owns a controlling majority stake in the company (67.25%), which has been branded Uninor in the Indian market. 3. Uninor offers mobile voice and data services based on the GSM technology, currently on a 4.4 MHz spectrum. With a value for money proposition in the market, Uninor targets youth and other communities within the Indian mass market.
Telenor factfile * Telenor entered India in 2009, formed JV with Unitech Ltd * Holds 67.25 per cent stake in the JV * Currently, it is operational in 13 circles * On February 2, SC cancelled 122 licences in total * 22 licences of Telenor got cancelled * Last week, it sent a notice to Unitech Ltd seeking indemnity and compensation * It has already invested about Rs 6,100 crore in the venture
Telenor Profile 1.Telenor Group is the incumbent telecommunications company in Norway, with headquarters located at Fornebu, close to Oslo. Today, Telenor Group is mostly an international wireless carrier with operations in Norway, Denmark, Sweden, Serbia, Ukraine, Hungary, Montenegro, Thailand, Malaysia, Bangladesh, India and Pakistan. 2. Prima facia, Telenor entered India looking at higher customer base availability and revenue generation. Uninor under Telenor influence set some unrealistic targets of revenue generation where they expected Profit generation from 5th Year.
Why Telenor will not continue in India?
The
Market Share of Tel Operators
Telenor Strategy to Enter India
Launching its Indian operation, Telenor announced a set of financial targets for the new venture. Uninor is targeting an 8% pan-India market share, breaking even on EBIDTA within three years of launch and obtain positive operating cash flow within five years of launch. The operational operational peak funding requirement is set at INR 155 billion. Uninors strategy to reach its targets is based on three strategic pillars; * servicing the basics, * excellence in mass market distribution and * cost efficient operations
What Went Wrong
1. Supreme Court Cancelled all 22 licences of Uninor making it compulsory to bid for new licences if want to continue with services. 2. Telenor when entered India, Unitech has already received the licences however was in wait for right partner. 3. Telenor Entered India with 67% stake in Unitech which was higher than expected stake. 4. Telenor valued Unitech at 400 Cr whereas BNP Paribas valued Unitech at 800 Cr and Unitech valued itself worth 12000 Cr.
What to do strategy for Telenor
1.Exit silently without much hype and legal proceedings. Transfer or sale stake at reasonable rate to interested Indian/foreign entity. 2.If Exit is simply not possible, Try to build repo with Unitech and fight effectively in legal proceedings and continue to work. 3.Buy Unitechs remaining 33 % stake in JV and sell it to other Indian company for JV for legal requirement and start own flagship company under Telenor Brand. 4.Once regained grounds, try to divercify the business in Telecom sector.
Why Telenor will not continue in India?
1. UAS (Unified Access Licence) for 22 circles which was costing somewhere around 1700 CR till now will charge 11,000 CR once new allotment begins. 2. For offering 3G services there will be extra investment requirement which are yet to be disclosed. 3. Operational Peak Funding was set in JV by Telenor was worth 15500 CR out of which it has already invested 6100 CR so far and new licence fees will cross its investment limits.
If Continues what will be the reasons?
1.In Just 2 years of Operations, Uninor has almost reached substantial market share of 3.5 % which is growing. (Current users are 30 miillion and growing) 2. Its vision to achieve market share of 8% til the 2018 is easily achievable. 3. It is admired brand by the basic users and appreciated by market for cheap and quality offerings 4. India is a huge opportunity for Telenor to be top in terms of no. of users worldwide and future prospects.
