Telenor moves SC, wants auction over in four months

Adding a new twist to the ongoing controversy surrounding the second generation (2G) licence auction, Norway’s Telenor ASA on Tuesday said it had filed a petition in the Supreme Court (SC) seeking completion of the process within four months ending June 2.

The telecom major’s move came in response to the government’s application in the apex court last month which wants more than four months specified in the verdict to conduct the auction. More specifically, it has talked about at least 400 days.

Sigve Brekke, managing director, Uninor, said it would be difficult for the company to survive in an atmosphere of uncertainty for 400 days. Only last month, the SC ordered cancellation of 122 licences and has directed the Department of Telecom to invite fresh bids for them. The court has set a deadline of four months for cancellation of telecom operators’ licences.  
The worry for Telenor and many others like it is that once their licences lapse, they would not be able to offer services to their subscribers.

And for good measure, he suggested that if the government adopts the tried-and-tested 3G model, it would be able to conclude the auctions within four months. In its recommendations to the Telecom Regulatory Authority of India, the company has asked the reserve price to be pegged at 3G reserve level, auction of two blocks per circle of 6.2 MHz each at the first stage and deferred payments.

Uninor is also keen on a staggered payment schedule that would allow upfront payment of 25% of the winning bid amount and 75% payable in equal instalments over 10 years. It’s also willing to pay higher interests rates.
Unitech to sell out?

Realtor Unitech, Telenor's joint venture partner, is "in principle" ready to sell its stake to the Norwegian company but wants a "fair" valuation, Reuters reported citing a source with direct knowledge of the matter.

Brekke declined to comment when asked if Telenor was open to buying out Unitech from their joint venture.